Gen Z and the rise of AI-powered travel

Gen Z, those born between 1997 and 2012, is increasingly relying on AI technology for their travel plans, research, and experiences. According to a McKinsey study, generative AI could unlock US$2 trillion to US$4 trillion in annual economic value across industries, including the travel sector, which is projected to exceed US$397 billion by 2028.

Gen Z is the most connected to AI out of all generations, with over two-thirds using it to research destinations, compare travel options, and receive real-time assistance during trips. This is more than six times the adoption rate among Gen X (41%) and significantly higher than Baby Boomers (11%).

Despite their familiarity with AI, Gen Z travelers approach it with cautious optimism, emphasizing fairness, accountability, and transparency in its development and use. Gen Z, born into a digital age, has quickly adapted to emerging technologies like AI. AI has transformed how they travel, from planning to the on-the-ground experience. In fact, 99% of Gen Z travelers use AI before their trips, with 42% relying on it for personalized recommendations and 40% using it to research destinations.

AI is also helping Gen Z uncover unique experiences and local insights throughout their journeys. However, while Gen Z embraces AI, they are not blindly trusting the technology. Concerns include job replacement, data privacy, bias, and potential disadvantages for those with smaller budgets. Despite these concerns, Gen Z sees AI as a valuable tool for enhancing their travel experiences, expecting technology providers to uphold ethical standards.