Welcome to the future of travel and dining, where generative AI is set to redefine the industry. Imagine booking hotels, finding dining options, and planning trips through voice commands. However, this near-future reality, led by companies like Apple, poses some challenges. As we navigate this transformation, the human element remains crucial—both for leaders tasked with driving change and for those on the front lines of implementation.
Generative AI is already impacting travel and hospitality, as brands like Marriott Bonvoy and Alaska Airlines enhance customer experiences, and quick-service restaurants explore AI-powered service. With 54 percent of travel and dining leaders viewing generative AI as crucial for the next three years, the potential is clear.
However, outdated engineering processes hinder comprehensive AI transformation. To boost productivity by the end of 2025, organizations must rapidly adapt, overhauling structures, practices, and AI literacy. Instead of relying solely on employee training, organizations should engage in AI projects at speed and scale with agile methodologies to maximize AI investments.
As Ed Vanga, Head of Product, Travel & Hospitality, notes, “Our devices will get smarter every year. Ensure your company is well positioned to adapt to personal assistant technology.” But beyond adapting to technology, the real challenge lies in maintaining a balance between technological innovation and human touch.
In this year’s Guide to Next 2025 report, Publicis Sapient experts break down the top five trends that will shape the travel and dining industries in 2025, based on C-suite research.
“Companies are increasingly adopting basic AI applications like content generation and SEO optimization. It might check the box when investors ask a question, or when the board asks a question like, ‘What are you doing about this AI thing?’ However, these surface-level implementations often fall short of realizing AI’s full potential.”
— Ed Vanga, Head of Product, Travel & Hospitality
“I’m in my kitchen talking to my wife. She asks, ‘When are you traveling next?’ I say, ‘October.’ She asks, ‘Where are you staying?’ I realize I forgot to book a hotel. I say, ‘Hey Siri, book me a hotel in Vegas from October 8-10 for a work trip.’ This future of conversational AI will revolutionize how consumers interact with travel and dining services,” says Ed Vanga.
Prioritize process optimization in your technology modernization efforts.
“Our devices will get smarter every year, reducing dependency on mobile apps and websites. Ensure your company is well positioned to adapt to personal assistant technology and be realistic about your brand’s capabilities.”
— Ed Vanga, Head of Product, Travel & Hospitality
Unlike previous generations, Gen Z prioritizes experiences over possessions, making travel a cornerstone of their lifestyle. Despite recent economic pressures, they continue to travel and are expected to do so through 2025. For travel and hospitality leaders, brand loyalty is the top priority in customer engagement this year, presenting a prime opportunity to target this new generation of travelers and future brand loyalists.
However, unlike their predecessors who meticulously planned trips months in advance, Gen Z travelers often choose last-minute adventures. This behavior is driven by a combination of factors. For leaders, the challenge is not just in capturing this market, but in understanding the unique needs and motivations of Gen Z and designing offerings that resonate with their values.
Percent of Americans that purchased travel in the past 12 months:
(Source: Omnibus Survey of Americans commissioned by Hopper)
Firstly, the digital age has equipped Gen Z with the tools to book travel arrangements quickly and easily. Platforms like Airbnb and travel aggregators offer flexible options, allowing for spontaneous trips.
Secondly, financial constraints often necessitate more flexible travel plans. To maximize their budgets, Gen Z travelers frequently pool resources with friends, taking advantage of group discounts and shared accommodations.
Finally, living through the COVID-19 era has given this generation a sense of spontaneity, as the possibility of borders shutting down and travel being paused is much more real.
“There’s a strong drive among Gen Z and late millennials to seek out authentic experiences through travel. They crave new foods, explore diverse places and cultures, and embrace different ways of thinking. This generation, the pioneers of the digital nomad lifestyle, is constantly looking for ways to make travel a regular part of their lives—while doing so affordably,” says JF Grossen, Global Vice President of Customer Experience.
This mentality highlights the importance of travel for Gen Z, as it is integrated into their lifestyle rather than being a luxury for special occasions. Interestingly, only 18 percent of travel and hospitality leaders consider customer acquisition rate a top metric for measuring growth.
Given Gen Z’s propensity for adventure, travel and dining brands must adapt their strategies to attract them. Offering last-minute deals and packages can appeal to spontaneous travelers. Emphasizing social experiences and opportunities for group bookings can resonate with Gen Z’s desire to share adventures with friends.
Additionally, understanding Gen Z’s financial realities is crucial. Creating flexible payment options and budget-friendly packages can make travel more accessible. Collaborations with financial technology companies can also help brands tap into this market.
“Imagine a world where every trip you take leaves a verified digital footprint, owned by you. This record can be instantly shared with trusted brands, revolutionizing how we travel and interact with businesses.”
— Nick Shay, Group Vice President, Travel & Hospitality, International Markets
For businesses, digital identity means access to higher-quality data, enabling tailored offerings and improved customer experiences. It’s going to remove artificial barriers for companies to enter the loyalty space. In the same way anyone can set up an e-shop cheaply and quickly these days, any business that has an idea and decides to participate can do so quite easily. This should encourage more innovation in the industry.
However, frictionless customer journeys are currently the lowest priority for customer growth for travel and hospitality leaders, with only 12 percent ranking it as a top priority. Brands must invest in this technology to participate in the digital identity trust network, moving from a belief that they can invest in their own customer data programs to participating in the trust network and meeting consumers on their terms.
This transformation will reduce friction in the travel and dining process, from airport check-ins to restaurant reservations. While businesses must invest in technology, the rewards are substantial. By embracing digital identity, companies can create more seamless and satisfying customer journeys.
Data security will be a growing concern for travel and dining brands in 2025, especially within the airline industry. High-profile incidents like the CrowdStrike breach highlight the vulnerabilities even in trusted systems. To safeguard against these threats, companies must adopt robust security measures and diversify their technology stack.
However, it’s likely that in 2025, travel and dining brands will experience another major data breach or technological failure due to the integration of large language models (LLMs). In fact, 87 percent of travel and hospitality leaders say that risk and security concerns have already been a barrier to generative AI efforts. Leaders must not only implement diversified security strategies but also foster a culture of vigilance and continuous learning among their teams.
Traditional reliance on a single cloud provider, such as Azure, AWS, or Google Cloud, is no longer sufficient. Embracing a multicloud strategy ensures continuity if one platform fails. Despite the benefits, many organizations still concentrate their trust in a few dominant technologies, making them prime targets for attacks. More than half of travel and hospitality leaders (52 percent) say their organizations have only completed one basic or initial implementation, and/or have cloud integration challenges.
The widespread use of LLMs from major players like OpenAI increases risks. These systems face constant threats from malicious actors aiming to exploit vulnerabilities. Companies must diversify their technological portfolios, incorporating a variety of AI models and platforms to mitigate these risks.
A broad approach to AI and cloud services is essential for future data security. Spreading risk and avoiding overdependence on any single provider can protect operations and customer data. In an evolving threat landscape, diversification is not just a strategy but a necessity for robust data security.
Publicis Sapient is a digital transformation partner helping established organizations get to their future, digitally enabled state, both in the way they work and the way they serve their customers. We help unlock value through a startup mindset and modern methods, fusing strategy, consulting and customer experience with agile engineering and problem-solving creativity. As digital pioneers with 20,000 people and 53 offices around the globe, our experience spanning technology, data sciences, consulting and customer obsession—combined with our culture of curiosity and relentlessness—enables us to accelerate our clients’ businesses through designing the products and services their customers truly value. Publicis Sapient is the digital business transformation hub of Publicis Groupe. For more information, visit publicissapient.com.