Adyen research reveals AI adoption among UAE travelers surges 57% YoY, with Gen X and Gen Z leading the charge

Dubai, United Arab Emirates, 13 August 2025

Adyen, the global financial technology platform of choice for leading businesses, today published its 2025 Hospitality and Travel Report, showing a significant shift in how travelers plan and book their trips. Based on a global poll of 40,000 consumers across 27 countries, the report reveals that 68% of UAE travelers now use AI to book holidays – both domestic and international – increasing by 57% on last year’s figures. A key trend highlighted is the growing consumer demand for hospitality businesses to integrate product search and streamlined, frictionless payment solutions directly into their booking platforms.

Yet while travelers rapidly adopt these new technologies, the hospitality industry faces significant infrastructure challenges. The report found that 67% of hospitality businesses in the UAE struggle with fragmented payment systems, where disconnected online and on-site processes create operational bottlenecks and complicate financial reconciliation. This gap between what consumers now expect and what businesses can currently deliver highlights a clear disconnect the industry needs to address.

Gen X and Gen Z lead the way in AI travel planning

The generational breakdown reveals distinct patterns in how UAE travelers are embracing AI. Gen Z (77%) and Millennials (74%) remain the most frequent users of AI for vacation planning, but Gen X is quickly catching up, with 44% now using AI and a 60% year-on-year growth rate. Gen Z usage also saw a strong 58% increase. Even Boomers are getting on board – 18% of those surveyed said AI helped them plan trips more easily.

One of the main reasons people are using AI for travel planning is that it gives quicker, more relevant suggestions. Many find social media too cluttered to be helpful – 81% of travelers say it’s filled with ads, sponsorships and influencer content. In comparison, 85% said AI helped them find travel ideas faster and made the planning process feel more focused and less overwhelming.

“AI technology has become incredibly important to guests looking for destination inspiration and quick, fun and personalized itineraries, especially as summer vacations arrive,” said Phil Crawford, Global Head of Hospitality at Adyen. “Guests are increasingly using AI to make their trips more seamless and, in response, hospitality providers are looking to invest to meet this growing demand.”

Hospitality businesses recognize AI as key to future growth

The research highlights how UAE hospitality businesses are responding to these shifting consumer behaviors. Over half (56%) of hospitality providers say AI search tools that help guests with booking decisions will reshape the industry in 2025 and beyond. Another (50%) believe AI-driven personalization will transform and elevate how they deliver guest experiences.

Payments are the critical bridge between AI-powered discovery and the full guest experience – from booking a room to hotel check-out. Crawford continued “Hospitality businesses are increasingly integrating AI functionality within their platforms to offer a more seamless payment experience for guests.”

Fraud remains a key concern

Payment security continues to be a major issue, with 17% of UAE travelers reporting they experienced fraud when booking flights or accommodation in the past 12 months. Hotels are experiencing similar challenges – 42% of UAE hospitality businesses saw a significant increase in payment fraud attempts over the past year. One response to this challenge is the use of AI tools designed to detect and prevent fraud more accurately, such as Adyen’s Uplift platform which features Protect – an AI-powered fraud prevention module that cuts false positives by 86% and helps ensure genuine transactions are processed without disruption.

Adyen’s UAE Hospitality and Travel Report can be viewed here.