Artificial intelligence (AI) is beginning to reshape the luxury travel sector, influencing how travelers discover, plan and book. But for an industry built on personal service, the technology is evolving primarily behind the scenes—enhancing human expertise rather than replacing it.
Interviews with industry leaders from luxury hospitality, travel advising and distribution suggest that while AI is improving efficiency and personalization, the most successful applications will remain largely invisible to travelers.
At the same time, research indicates the luxury travel market itself is changing, expanding beyond traditional ultra-high-net-worth consumers to include a growing segment of “aspiring luxury” travelers who are selectively trading up for premium experiences.
Phocuswright’s research report Quiet Luxury in Motion: The Indulgent Explorer Mindset frames luxury in terms of a consumer behavioral segment it calls "indulgent explorers." On average, these travelers have a higher income and net worth, but some are making budget trade-offs to prioritize indulgence during travel.
In exchange for their premium spend, these travelers seek exclusivity and unique experiences, with 47% agreeing that they “prefer travel experiences that not everyone can access.”
Taken together, these trends will define how travel companies apply AI to meet the expectations of high-value travelers.
AI should enhance service, not replace it
According to the Phocuswright report, the most-cited factor that makes a luxury trip “worth it” is exceptional service (38%).
One of the clearest messages from the experts we spoke to across the luxury travel sector is that AI’s role is to support human service.
“Luxury travelers don’t see AI as a substitute for expertise; rather, they expect it to quietly enhance the experience,” said Melissa Krueger, CEO of Classic Vacations. “As AI becomes more prevalent, the value of human connection is actually increasing.”
Doris Goh, executive vice president of commercial at COMO Hotels and Resorts, said guests in the high-end segment still expect meaningful personal engagement.
“Luxury guests expect human recognition and discretion, not purely algorithmic efficiency,” she said.
In practice, that means AI is most effective when it enhances employees' ability to meet guests’ needs.
“The most successful models use AI as an augmentation layer, providing insights to staff rather than replacing the human relationship,” Goh said. “Luxury hospitality really faces several structural differences compared to mass travel platforms. Emotional intelligence matters more than automation.”
For luxury travel advisors, that augmentation is especially important. Jake Peters, co-founder and chief product and technology officer at travel agency platform Fora, said AI tools are already helping advisors deliver higher levels of service.
“Where we can leverage AI to make advisors really effective at their jobs in providing five-star service to their clients, we want to make it as easy as possible for them to do that,” he said.
AI’s biggest impact is behind the scenes
For luxury travel, AI delivers the greatest value in back-end operations rather than in direct customer interactions.
“We use it across our entire application behind the scenes,” Peters said, citing AI’s usefulness in financial reconciliation, rate monitoring and proposal generation. For example, advisors use AI to generate more relevant travel proposals quickly.
“I can now create a bookable quote in five minutes instead of spending an hour and a half putting a proposal together,” Peters said.
Luxury hospitality sees similar efficiencies from applying AI to CRM data, helping them anticipate traveler preferences.
“AI systems analyze CRM data, behavioral signals and contextual information to anticipate guest preferences and tailor recommendations even before the booking is completed,” Goh said.
Krueger said companies are also using AI to summarize communications, analyze call center interactions and generate itinerary suggestions.
“We are actively exploring AI across the business to enhance, not replace, human expertise,” she said.
The key is ensuring the technology remains invisible to the traveler.
“The challenge isn’t adopting AI—it’s making sure travelers never feel it,” Krueger said.
Personalization remains a complex challenge
One of AI’s most promising applications in luxury travel is personalization, but industry experts say meaningful execution remains difficult.
Peters argues the biggest challenge is data. “If you really want to know what someone is interested in, how do you get all this data about their preferences?” he said.
While AI can quickly identify patterns such as frequently booked hotels, it struggles to understand more nuanced preferences like a destination’s atmosphere or lifestyle fit.
“How does the personalization system of AI know that?” Peters said. “The advisor can assist in the final layer of personalization on top of AI.”
Krueger believes the next step for AI in luxury travel will be predictive service.
“The real opportunity is moving from reactive to predictive service,” she said. “AI can help advisors anticipate needs, make well-timed recommendations and surface unique experiences.”
Goh noted that luxury travel companies often deal with smaller customer volumes but far richer profiles, including lifestyle preferences, dining habits and personal milestones. That individual recognition is essential to service. It also means that luxury travel providers have access to sensitive personal data, which travel services providers must protect.
“Luxury travelers tend to be more sensitive about privacy,” Goh said. “But if guests trust a brand, they keep coming back because they know their information is safe.”
Any application of AI must guarantee the same high level of discretion that humans provide.
The (un)changing luxury traveler
While technology evolves, the luxury traveler is also changing. New research from travel technology company Arrivia suggests that the luxury market is expanding beyond traditional ultra-high-net-worth consumers.
The company’s report, The New Luxury Travel Playbook, surveyed more than 2,000 U.S. leisure travelers and found that roughly 35% of luxury travelers now fall into an “aspiring luxury” category—households with a net worth between $100,000 and $1 million that are increasingly willing to spend more for comfort, convenience and meaningful experiences.
The report also highlights shifting demographics. Millennials, for example, account for 36% of aspiring luxury travelers, indicating the growing influence of younger travelers on the future of premium travel demand.
The experts we spoke to also noted that generational differences influence how travelers might want to engage with AI.
“Younger luxury clients are generally comfortable using AI during the early planning stages, often for inspiration or research,” Krueger said. “More established travelers usually prefer a fully advisor-led approach.”
“The younger ones, the Gen Z who are very independent … they’ve been overseas, done that, and they have their own way of traveling,” Goh said.
Despite these differences, luxury travelers’ service needs remain consistent across demographics and are unlikely to change significantly from one generation to the next.
“Across all segments, the expectation is that the final experience feels highly personalized, flexible and effortless,” Krueger said.
“If you have kids who always travel with their parents and the parents love luxury and lifestyle, the kids are modeled along that—so as they grow up, they expect that level of service,” Goh said.
The enduring role of human connection
Despite rapid advances in AI, luxury travel leaders believe the essence of luxury travel will remain deeply human.
“Humans are going to remain relevant in travel as long as humans are providing the hospitality,” Peters said.
Goh agrees that the rise of AI may actually increase the importance of human interaction. “The more technology is applied, the more people will crave human interaction,” she said.
For luxury travel companies, the challenge is striking the right balance. Technology must streamline planning and surface insights while preserving the emotional connection and personal attention that define premium travel.
As Krueger puts it: “When applied well, AI doesn’t change the relationship—it strengthens it.”