AI-Driven Personalization in Travel Tech: How Trip.com's Trip.Planner is Reshaping Consumer Behavior and Unlocking Growth

The travel industry is undergoing a quiet revolution, driven not by flashy marketing campaigns but by the quiet power of artificial intelligence. At the heart of this transformation is Trip.com's Trip.Planner, an AI-powered tool launched in 2025 that is redefining how consumers plan trips. By leveraging generative AI, real-time data integration, and hyper-personalized recommendations, Trip.Planner is not just streamlining travel planning—it is reshaping consumer behavior and unlocking new revenue streams for online travel agencies (OTAs). For investors, this represents a compelling opportunity to capitalize on a sector where technology and human-centric design intersect to create lasting value.

The AI-Driven Shift in Travel Planning

Traditional travel planning has long been a fragmented process: researching destinations, comparing prices, and coordinating logistics across multiple platforms. Trip.Planner eliminates this friction by consolidating all aspects of travel planning into a single, intelligent interface. Users begin by answering three simple questions—destination, trip duration, and travel style—and the AI generates a preliminary itinerary. But the tool's true power lies in its ability to adapt. Users can rename, reorder, or replace activities, while a floating AI assistant offers real-time suggestions based on seasonal relevance, user preferences, and verified data from Trip.com's ecosystem.

This level of personalization is not merely a convenience—it is a behavioral shift. For example, the tool's “Style-Based Itineraries” cater to niche demographics:
- Family-Friendly: Recommends theme parks and wildlife encounters, addressing the needs of parents seeking child-centric activities.
- Elderly-Friendly: Prioritizes low-intensity, accessible experiences, a segment that Trip.com has aggressively targeted with its Old Friends Club, which saw 100% year-over-year growth in Q1 2025.
- Cultural and Historical: Curates museum visits and heritage sites, appealing to travelers seeking immersive, educational experiences.

By aligning with these micro-niches, Trip.Planner is not just selling trips—it is selling experiences. This shift is reflected in Trip.com's financials: in Q1 2025, revenue from “entertainment plus travel experiences” (e.g., music festivals, themed tours) surged 400% year-over-year. Younger travelers, in particular, are embracing this model, prioritizing self-expression and cultural relevance over generic itineraries.

Financial Performance and Market Position

Trip.com's Q1 2025 results underscore the commercial viability of AI-driven personalization. Total net revenue hit $1.9 billion, a 16% year-over-year increase, with accommodation and transportation ticketing revenue rising 23% and 8%, respectively. The company's inbound tourism segment, fueled by China's visa-free policies and targeted campaigns, saw bookings surge 100% year-over-year. For context, inbound hotel bookings from key visa-free countries grew by over 240%, a testament to the effectiveness of Trip.Planner's integration with real-time data and localized marketing.

The Old Friends Club, a service tailored for older travelers, further highlights Trip.com's ability to monetize AI-driven segmentation. With 100% growth in users and gross merchandise value, the company now offers 7,000 travel products and 4,000 hotel packages for this demographic. This focus on underserved niches is paying off: corporate travel revenue grew 12% year-over-year to $79 million, while international OTA reservations increased by 60% year-over-year.

Competitive Landscape and Strategic Advantages

While Booking.com and Expedia have made strides in AI personalization—such as Booking.com's Smart Filters and Expedia's Romie AI assistant—Trip.Planner's all-in-one integration and real-time data capabilities give it a distinct edge. Unlike competitors, which often require users to toggle between multiple platforms, Trip.Planner consolidates booking, itinerary design, and real-time updates into a single hub. This reduces user friction and increases conversion rates, a critical factor in an industry where convenience drives loyalty.

Moreover, Trip.com's data moat is formidable. The company draws from millions of data points across its platforms, including Trip.Best picks, Trip.Pulse, and Trip.Events. This allows its AI to generate recommendations based on real traveler experiences, not just algorithmic guesses. For example, the tool's ability to suggest verified airport transfers or car rentals in remote areas—based on destination-specific needs—demonstrates a level of contextual awareness that rivals struggle to match.

Investment Thesis: A Sector in Transition

The AI-driven personalization market is still in its early innings. By 2034, the OTA industry is projected to grow from $269.8 billion in 2025 to $533.7 billion, with mobile app-based bookings accounting for over 75% of transactions. Trip.com is well-positioned to capture a significant share of this growth, given its first-mover advantage in AI integration and its ability to scale personalized offerings across demographics.

For investors, the key risks include regulatory scrutiny of AI tools and the potential for competitors to replicate Trip.Planner's features. However, Trip.com's robust cash reserves ($12.8 billion as of March 2025) and its track record of innovation—such as its short-form drama series targeting older travelers—suggest a company that is not only adapting to trends but shaping them.

Conclusion: A Catalyst for the Future of Travel

Trip.com's Trip.Planner is more than a product; it is a catalyst for redefining how people engage with travel. By aligning AI capabilities with human-centric design, the tool is unlocking new revenue streams while fostering deeper customer loyalty. For investors, this represents a rare intersection of technological innovation and commercial scalability. As the travel sector evolves from transactional to experiential, companies that can harness AI to deliver personalized, seamless journeys will dominate. Trip.com, with its Trip.Planner at the helm, is poised to lead this transformation.

Investment Advice: Given its strong Q1 performance, strategic focus on underserved demographics, and AI-driven differentiation, Trip.com (TCOM) is a buy for investors seeking exposure to the next phase of travel tech. Monitor its expansion into new markets and its ability to maintain EBITDA margins amid rising marketing costs.