Saudi Arabia witnessed a 5% increase in tourism visits in 2025, exceeding 120 million travelers. This growth coincides with a broader trend of the travel industry undergoing rapid transformation driven by artificial intelligence (AI).
The AI-First Airline Strategy
Airlines are now recognizing that true innovation isn’t about simply adding AI to existing systems. Instead, it requires a foundational shift to an “AI-first” approach — rebuilding core infrastructure to operate proactively, personalize customer experiences at scale, and streamline operations. This strategy is proving more effective than incremental upgrades.
The Changing Role of Travel Agents
Sabre, a major travel technology provider, is pioneering “agentic AI”, which aims to augment rather than replace human travel agents. This is causing uncertainty among some in the industry, as the role of agents evolves toward higher-value tasks that AI can’t replicate. Sabre executives emphasize that this shift is about empowerment, not displacement.
The Green Fuel Challenge
The transition to sustainable aviation fuel (SAF) faces a significant obstacle: lack of investment from fossil fuel producers. TotalEnergies’ CEO has openly stated that airlines are unwilling to pay the premium for SAF, hindering progress toward climate goals. This highlights a fundamental tension between industry ambitions and economic realities.
The AI Skills Gap
Agoda’s CEO warns that travel professionals who fail to adapt to AI-driven workflows risk obsolescence. The industry is demanding employees who can work alongside AI tools, not resist them. This underscores a growing skills gap that could reshape the travel workforce.
The future of travel is increasingly intertwined with AI. Saudi Arabia’s tourism boom, the evolution of agentic AI, the SAF roadblock, and the AI skills gap all point to a single truth: adaptability is now essential for survival in this rapidly changing landscape.
