AI Is Reshaping Travel Demand and Vacation Choices Worldwide

More people are now starting online searches with artificial intelligence tools instead of traditional search engines, and Google said last month that it is integrating Gemini directly into its homepage. The shift is affecting not only Google, but also brands and companies across industries, including travel, as Mastercard examined anonymized real payment data ahead of the summer holiday season.

Mastercard found that travelers who subscribe to paid AI tools spend nearly twice as much on hotel stays, cruises, restaurants and leisure activities as travelers without such subscriptions. The gap did not appear in more essential categories such as food and car rentals. The company also found that AI subscribers favor unusual, less conventional destinations and are more likely to go off the classic routes, often asking chatbots for alternatives to well-known cities, hidden gems, or lesser-known places with strong experience value.

To understand why some travelers ended up spending in places such as Leipzig and Pantelleria, Mastercard’s research arm cross-referenced purchase data with digital content analysis, including travel articles, forums and online recommendations. The analysis showed that AI tools tend to present these places as hidden gems or cheaper, less crowded alternatives, for example positioning Leipzig as an alternative to Berlin.

Mastercard says the trend shows AI is no longer only a planning aid, but a real force shaping demand. According to the company, destinations with high “algorithmic visibility”, meaning they are described in a rich, structured and positive way across leading content sources, gain more exposure. Mastercard Israel CEO Il Paz said, “If until now the competition in Israel was for the first place in the consumer’s digital wallet, in the coming years it will be for the first place in the AI systems that make decisions on their behalf.”