K Sabapathi from Vellore often runs on his feet whenever he travels. He does not have the time to book flights and hotels or plan entire trips. “I spend very little time on knowing what places to visit, food to try, and daily itineraries curated to my preferences,” he tells AIM.
That’s when an AI-assisted travel planning came to the rescue, helping him draft an itinerary. “I contacted a travel firm and asked them to book places and plan schedules based on the suggestions,” he says.
S Ananya Rao, a frequent solo traveller from Bengaluru, now also relies on AI to plan her trips.
“During my last trip, I interacted with an AI chatbot that handled everything from itinerary planning to real‑time updates. It even suggested local experiences based on my preferences. Having 24×7 personalised support made me feel like I had a digital travel assistant by my side,” she affirms.
Generative artificial intelligence is increasingly redefining how travellers plan, book, and experience travel in India. And travel tech firms are jumping on the opportunity. According to a 2025 report by McKinsey and travel platform Skift, the share of travel companies using AI in India has increased from 4% in 2022 to 35% in 2024.
Across India’s evolving travel technology ecosystem, AI is being integrated into both customer-facing and back-end systems to enhance personalisation, streamline operations, and improve decision-making at every stage of the booking journey. It enables personalised recommendations for flights, hotels, and holiday packages by analysing user preferences, including budget, occasion, and activity choices.
AI-Powered Travel
Thomas Cook and SOTC have introduced an agentic AI platform, Dhruv, for corporate travel, streamlining customer interactions and improving itinerary planning through intelligent automation.
Scapia integrates AI to suggest travel experiences that match consumers’ preferences, time, and budget. The company applies AI to configure and filter applications and manage bookings.
Major travel platforms are also investing in large-scale AI partnerships to enhance customer experience.
MakeMyTrip has partnered with Microsoft to obtain Azure OpenAI Service and Azure Cognitive Services. The collaboration enables advanced multilingual voice search, personalised itinerary recommendations, and intelligent customer support. Last year, the company also launched Myra, an AI agent designed to assist travellers with real-time travel planning, bookings, and post-booking support.
Meanwhile, firms, including MakeMyTrip and Yatra, as well as airlines like Air India, have also piloted voice-assisted interfaces in Indian languages, helping users discover destinations, compare travel options, and complete bookings.
The impact is already showing up in numbers.
“Early internal data indicates a significant uplift in user engagement, close to 90% across select discovery journeys, helping travellers plan itineraries more efficiently and make more informed decisions,” says Rikant Pittie, Co-founder and CEO of EaseMyTrip.
That drive also shows up in where the moolah flows. Recently, many travel firms incorporating AI raised venture capital.
Last year, Scapia raised $40 million in a round led by Peak XV, while Dutch firm Prosus took a 10% stake in Ixigo for $146 million. RateGain, a listed travel company, acquired AI travel startup Sojern to double down on its AI initiatives. Meanwhile, travel tech startups Holiday Tribe and Passprt Trips raised $3 million and $500,000, respectively.
Moreover, broader consumer data underscores the scale of AI adoption in travel. According to Booking.com, 87% of Indian travellers are willing to use AI-powered travel tools to assist with trip planning. The trend is particularly strong among younger demographics, with Gen Z travellers expressing interest in self-drive travel or AI-guided routing.
Responsible AI Assistance
A simple search on ChatGPT for domestic and international trips returns detailed fare estimates across categories, listing hotel prices drawn from TripAdvisor, MakeMyTrip, and Cleartrip, flight rates from Skyscanner and ixigo, and train schedules from IRCTC. It also referenced local tourism websites for permits and entry fees.
V Rohit Mehta, from Mumbai, tells AIM he recently used AI chatbots to plan a trek in Himachal. He simply typed in his requirements on ChatGPT and Perplexity, which generated a customised itinerary covering transport, stays, and permits. He adds that this saved them several days of research.
Beyond chatbots, Indian travel tech firms are also ensuring their chatbots deliver the same level of accuracy and safety with automated responses. This is ensured through a combination of robust AI training, continuous monitoring, and ethical governance. AI models are trained on verified travel data, ensuring that flight, hotel, and pricing information is reliable and up to date.
“Responses are regularly tested for consistency, relevance, and correctness, while safeguards prevent the AI from offering advice outside its scope. Ethical guidelines and compliance frameworks, aligned with emerging Indian AI governance standards, govern how data is used and shared,” says Pittie.
The emphasis on governance reflects a wider industry movement toward responsible AI deployment. Human oversight complements automation, with support teams reviewing complex queries and flagging errors. This approach ensures travellers receive trustworthy, safe, and useful information throughout their journey.
Alongside customer-facing tools, travel tech firms are extensively deploying AI in back-end functions to improve operational efficiency and service quality. Machine learning models forecast demand patterns and optimise inventory management for flights and hotels, helping ensure competitive pricing and availability.
“AI-driven systems automate repetitive tasks such as document verification and booking reconciliations, reducing manual errors and turnaround times. Advanced analytics support revenue management by identifying pricing opportunities and optimising yield across channels,” notes Sriharan Balan, MD at Madura Travel Service.
AI also enhances risk detection and fraud prevention by spotting unusual patterns in transactions and user behaviour. These back-end applications strengthen internal processes, reduce costs, and create a more reliable foundation for delivering seamless travel services.
Is AI Replacing Travel Firms?
Industry analysts suggest that AI-driven automation could significantly reduce operational costs across the travel value chain. According to McKinsey’s travel insights on agentic AI, intelligent agents capable of autonomously managing workflows and decisions can reduce operational costs across airlines, online travel agencies, and hospitality providers by 30%, while enabling more dynamic pricing and demand forecasting.
Despite the rapid adoption of AI, emerging patterns indicate that technology is complementing rather than replacing traditional booking behaviours. "Internal observations indicate a noticeable rise in travellers using AI-powered tools during the early discovery phase of trip planning, comparing options, and shaping itineraries,” Pittie explains.
Business intelligence platform Qlik’s 2025 study on Indian travel behaviour highlights that while Indian travellers increasingly rely on AI for inspiration, itinerary planning, and price comparisons, human trust and established platforms continue to play a key role in final purchasing decisions.
However, this behaviour typically sits at the top of the funnel. Reports, including Qlik’s, suggest that travellers still prefer trusted platforms when it comes to final decisions, payments, and confirmations. Rather than displacing enquiries or bookings, AI-driven discovery is streamlining the path to purchase, supporting steadier conversion rates and more informed customer engagement across the booking journey.
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