AI Reshapes Travel Companies’ Technology Spending

Travel companies are increasing their spending on artificial intelligence (AI). At the same time, some businesses are reducing their reliance on software-as-a-service (SaaS) tools and outsourced development.

Trivago highlights the scale of the change. The metasearch company spent more than five times as much on AI tokens and tools during the first seven months of 2026 as it did throughout 2025.

An internal Trivago survey also found that 93% of employees use AI daily. That figure compares with 63% during the same period a year earlier. Furthermore, 86% of respondents said AI was making a measurable difference to their output.

From AI Testing to Wider Adoption

Travel companies began 2025 by experimenting with AI, testing models and developing prototypes. However, many businesses are now moving from experimentation to broader deployment.

Faye co-founder and CTO Daniel Green said the company used 2025 to understand AI capabilities. In 2026, Faye has focused on scaling successful applications across the business.

Withlocals has followed a similar path. CEO Matthijs Keij said the company’s internal AI spending is now around two to three times its 2025 level.

The bigger change, however, is how employees use the technology. Withlocals has moved from using AI mainly as an enhanced search tool to integrating it into everyday workflows.

External spending is also growing. Withlocals is increasing its use of platforms from OpenAI, Google and Anthropic.

AI Changes Software Spending

AI is also changing how travel companies allocate technology budgets. Withlocals, for example, has stopped paying for some single-purpose software tools and is developing similar capabilities internally.

As a result, some spending is moving away from traditional SaaS products. AI tools can now help non-engineers build capabilities that previously required external software or development support.

Priceline is also redirecting some technology spending. CTO Sejal Amin said the company is retiring unnecessary tools and consolidating others while increasing investment in its AI assistant, Penny.

However, not all AI investment comes from existing budgets. Some companies are providing additional funding for AI initiatives.

Faye has taken a different approach because AI was part of its technology strategy from the beginning. Green said the company now sees AI reducing its dependence on some SaaS products while also allowing it to grow its workforce more gradually.

Measuring AI Return on Investment

As AI budgets grow, travel companies are also looking more closely at return on investment.

For Withlocals, measuring a clear AI return remains difficult because AI now supports many areas of the business. The company instead considers factors such as employee productivity and the amount of work completed.

Another measure is the time required to turn an idea into a live product. Faster development can create commercial value by allowing projects to move forward that previously would have remained on a backlog.

Faye focuses on operational efficiency and customer experience. AI can also help the company develop and customise insurance products faster.

Green said AI can reduce the time required to create customised products while supporting underwriting, pricing and personalisation.

AI Spending Could Become Part of Everyday Costs

Travel companies may eventually stop treating AI as a separate budget category.

Green expects AI spending to become part of broader employee and sales costs. In other words, AI could become as routine to business planning as salaries, software and office expenses.

Meanwhile, Keij expects overall technology spending to remain relatively similar in the long term. However, he believes the mix of that spending will change significantly.

AI usage could continue to grow as companies deploy more agents and automate more tasks. At the same time, the cost of individual AI capabilities could fall.

Therefore, travel companies may gradually spend less on software designed to perform individual tasks. Instead, they could invest more in flexible AI capabilities that allow employees and platforms to perform those tasks themselves.

Ultimately, AI may stop appearing as a separate technology expense. Instead, it could become a fundamental part of how travel companies build products, manage operations and serve customers.