Chinese Travel Agents Embrace AI but Seek Improvements

China's travel agencies are rapidly adopting artificial intelligence (AI) to rebuild their outbound travel business, according to a new survey by Dragon Trail Research. The survey of 280 outbound travel agents reveals that 82% already use AI in daily operations, primarily for itinerary planning, translation, content suggestions, and customer service.

AI Adoption and Shortcomings

• Current Uses: AI helps with tasks like translating menus, suggesting local transport options, and managing bookings, allowing staff to focus on personalized service.
• Challenges: Translation tools often misinterpret dialects or fail to capture tone, while itinerary planners are seen as too rigid. Agents want weather-aware suggestions and smarter filtering of previously visited destinations.
• Non-Users: 18% of agencies haven't adopted AI, citing the need for better translation and customer service tools before committing.

Source: Dragon Trail Research

Outbound Travel Trends

• Rebound: Over 60% of agents reported improved business in 2025 compared to 2024, though 17% faced challenges due to economic instability and global conflicts.
• Senior Market: 23% of agents now focus on older travelers, up from 14% in January.
• Destinations: East Asia and Western Europe lead in sales, but Central Asia and lesser-known South American countries are gaining interest.

Source: Dragon Trail Research

Europe's Growing Appeal

Western Europe ranks just behind East Asia in product availability and sales performance, with France, the UK, Switzerland, Iceland, and Italy seen as top destinations. However, only 35% of agents attended European destination promotions in the past two years, all for Western Europe. Agents request more materials on cultural attractions, safety, and multi-country itineraries.

Personalization Drives Demand

Travelers increasingly seek customized, experience-driven trips, such as study tours and themed itineraries. Small group tours (10-20 people) are the most sold product, followed by family travel and high-end packages. Gen-Z and affluent travelers are key drivers of this trend, straining smaller agencies lacking resources to meet fragmented preferences.