AI is the New Travel Agent: Adyen Reports 28% of Aussies Use AI to Book Holidays, Up 73% From 2024

Adyen, the global financial technology platform of choice for leading businesses, has today published its 2025 Hospitality and Travel Report. The report reveals

Aussies are leaning on AI more than ever to plan and book their getaways – from choosing destinations to locking in last-minute deals.

According to the report, 28% of Australian travellers now use AI to book holidays, a 73% jump from last year, with Boomers leading the charge (106%) in year-on-year growth.

But this shift isn’t without challenges. 63% of merchants say fragmented online and on-site payment systems are limiting their ability to deliver connected guest experiences – particularly among today’s savvy travellers who want fast, intuitive and secure interactions. And with more bookings taking place online, concerns around payment fraud are rising too.

Boomers and Gen Z drive AI momentum

In Australia, Gen Z (49%) and Millennials (41%) are the most active users of AI for travel. Across all age groups, 71% say AI delivers faster inspiration than any other method, while 60% of Boomers say it helps them cut through the clutter of ad-heavy social media. From itinerary planning to finding the perfect stay, AI is quickly becoming the tool of choice across generations.

Hospitality leaders prepare for the AI-powered guest experience

Hospitality leaders are also gearing up to navigate a new era of travel – 47% say AI-powered search tools will redefine booking behaviour in 2025, while another 47% believe automation that personalises guest experience will transform the industry.

It’s clear AI tools are already reshaping how guests browse and choose their holidays, but to deliver truly connected guest journeys, it must continue through to the final touchpoint: completing the purchase. From dynamic pricing and personalised offers to detecting fraud in real-time, AI is helping businesses deliver smarter, safer and more frictionless payments.

“Across Australia, we’re seeing more hospitality businesses embedding AI across their digital platforms to personalise search, surface relevant experiences, and inspire faster bookings,” Fisher added. “But the real power of AI is unlocked when it enhances the checkout too – by tailoring payment options based on customer preferences, speeding up authentication, and spotting fraud before it impacts the guest. That’s what turns AI from a novelty into a competitive advantage.”

Fraud a concern for both guests and merchants

As AI continues to transform how Australians plan and pay for travel, it’s also introducing new vulnerabilities. 39% of Australian accommodation providers say they’ve seen a significant increase in payment fraud attempts over the past year, making security a growing concern for both guests and operators.

“With AI now central to travel planning, security can’t be an afterthought,” said Fisher. “Guests expect every interaction from discovery to payment to be effortless, but also secure. At Adyen, we help hospitality businesses strike that balance, using AI not just to personalise experiences but to prevent fraud in real time and protect what matters most – customer trust.”

The Adyen Travel Report shows AI isn’t just shaping trip inspiration—it’s transforming how guests pay, protect data, and experience seamless travel. Adyen’s full Hospitality and Travel Index Report can be viewed here.