2026: Travel’s race to scale agentic AI

A turning point in travel technology

At ITB 2026, the conversation around artificial intelligence will be intense and unavoidable. And with good reason. According to Phocuswright’s latest study Budgets, Barriers and the Race to Agentic AI, travel companies are not only adopting AI, they are beginning to operationalize it in ways that will define competitive positioning for years to come.

After a year of rapid exploration, 2026 is shaping up as the year agentic AI moves into the core of travel operations. Unlike earlier gen AI tools focused on content creation, agentic AI is designed to execute real-world tasks across systems and workflows.

Agentic AI refers to systems that autonomously perform complex tasks using real-time data, integrations and defined objectives, going well beyond simple text or image generation.

More than 60% of travel business are already engage with agentic AI

Phocuswright’s research shows that agentic AI adoption is no longer theoretical.

⦁ 6% of travel companies are already scaling agentic AI across multiple domains and functions

⦁ 22% have begun scaling in select areas

⦁ The largest group is actively experimenting with agentic AI but has not yet scaled

⦁ A meaningful share plans to adopt agentic AI within the next three to five years

In total, more than 60% of travel businesses are either experimenting with or scaling agentic AI today. This signals a clear shift in mindset. AI is increasingly viewed as a structural capability rather than a side project.

Technology budgets are lining up with AI ambitions

Investment trends reinforce this momentum.

⦁ 62% of companies expect their technology budgets to increase in 2026

⦁ Growth expectations are strongest in the one to five percent, six to ten percent and greater than ten percent increase categories

⦁ Very few companies anticipate budget reductions

While AI does not yet dominate technology budgets, leaders are clearly being given room to invest. Many are choosing to direct that capital toward generative and agentic AI initiatives.

Four signals from the front lines of AI investment

Looking beyond headline adoption numbers, executive sentiment reveals where the market is headed.

1. AI has risen to the top of the technology agenda
Generative AI is now the number one technology investment priority over the next 12 to 18 months for many travel companies. It has moved firmly into board-level planning discussions.

2. Most AI spending still funds experimentation
Although adoption is widespread, most deployments remain tactical. Few companies have fully redesigned workflows or systems around AI. Instead, AI is being layered onto existing infrastructure.

3. Budgets are rising, but not yet rewired for AI
Overall technology budgets are increasing, but only a small share of companies currently allocate more than 20% of that spend to gen AI. This suggests AI investment is accelerating but has not yet reached core-infrastructure status.

4. Impact is clear, preparedness is uneven
A strong majority of executives say gen AI has already delivered positive business impact. At the same time, many do not feel fully prepared to scale. The biggest obstacles are integration complexity, talent gaps and data security concerns, not lack of interest or funding.

What this means for travel leaders at ITB

This is a strategic inflection point
The next phase of competition in travel will be shaped by which companies can move from pilots to production. Scaling agentic AI requires infrastructure, governance, data readiness and organizational change.

Interoperability will be critical
Emerging standards such as Model Context Protocol are gaining traction because they allow AI systems to connect across platforms. Companies that enable AI to operate across CRM, inventory, pricing and commerce systems will unlock far greater value.

Talent and execution will separate leaders from followers
Technology alone will not determine outcomes. Companies that invest in skills, operating models and execution discipline will move faster and capture disproportionate advantage.

The bottom line

⦁ Agentic AI adoption in travel is real and accelerating

⦁ Technology budgets are rising, creating room for AI investment

⦁ The competitive gap will widen between companies that scale AI and those that stall

⦁ 2026 will reward execution, not experimentation alone

For leaders attending ITB, the message is clear. The question is no longer whether to invest in AI. It is how quickly organizations can turn that investment into durable advantage.

Sponsored Article by Phocuswright