Boutique lounges and champagne bars: Travel agents are pulling out all the stops amid AI boom
Updated . First published at
What could be the bougiest travel agent ever has opened its doors in Sydney, hoping to attract travel-keen Aussies with a boutique lounge feel complete with its own champagne bar.
After first launching a retail store in Melbourne two years ago, Luxury Escapes has unveiled its second store at Westfield Bondi this week.
The space underwent a multi-million-dollar transformation by industrial designer George Berry to become a "luxury holiday shopping haven".
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Luxury Escapes has unveiled its second store at Westfield Bondi. Supplied
With online booking platforms booming, and AI being increasingly used (especially by the younger generations) Luxury Escapes co-founder and CEO Adam Schwab knows opening a store does go against the trend.
"We know it bucks the typical online-only trend, but a recent Luxury Escapes survey found that while 80 per cent of travellers book online, 15 per cent prefer to book in person and 5 per cent over the phone," he shared.
"Our goal is to offer the best of both worlds: the ease and convenience of digital and the magic of real person expertise and experience."
He said the key to the success of the Melbourne store has been "creating an inspiring experience before customers even take off on their holiday".
As such, the Sydney store was designed to feel "more like a premium airline lounge".
It will have fifteen full-time consultants with global experience offering face-to-face deals and advice.
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A champagne bar is on offer to entice potential customers. Supplied
The Sydney store was designed to feel "more like a premium airline lounge". Supplied
Skyscanner data from earlier this year showed that over half (51 per cent) of Gen Z Aussies trust AI-generated itineraries more than traditional travel agents, with 8 in 10 Gen Z using their phones to plan and book travel.
"Planning the perfect trip that suits individual preferences has become more labour-intensive than ever," Skyscanner Australia Travel Expert, Jarrod Kris, told 9Travel at the time.
Jarrod says the main drawcard of AI is how it streamlines the whole planning process, and "ultimately makes it less stressful by giving travellers a greater sense of control and confidence".
Happy couple at home booking a trip online using their laptop computer Getty
Despite this, when asking around the office, most people would still prefer to go down a more traditional route when planning their travel – and speak to a human.
"I initially used AI for Japan trip planning as I was curious about what it would suggest, but then when it gave me an itinerary, I didn't trust it to be what I wanted," Siena shares.
"So I ended up compiling a plan based off recommendations from real people, on socials and through google maps, as it's far more trustworthy and aligned with my specific interests and tastes."
Most still prefer to speak to a real human for travel tips. 9Travel
Maddison agreed speaking to someone who has actually been to a place is by far more preferable to using AI.
"I would absolutely never use AI for planning/booking travel, even if it was just to generate an itinerary. I just don't trust AI not to hallucinate and send me off on a wild goose chase after a landmark or tourist destination that doesn't actually exist," she says.
"I also just prefer to get travel advice/recommendations/tips from real human beings who have actually been to the places I want to go. I wouldn't ask someone who has never been to Thailand where they think I should stay in Bangkok, or what I should do in Phuket, so why would I ask AI – something that never has and never will visit these places?"
Sarah remembers the heyday of travel agents.
"I have such fond memories as a kid of going to travel agents with my mum (in England) to book holidays," she says. "It was so exciting collecting all the brochures and dreaming about it and then sitting at the desk with the woman tapping on her computer to bring up all the holidays. You'd then have to return to collect the tickets too.
"You just don't get the same level of excitement booking stuff on your phone. I would rather go back to a travel agent and use AI... but again who has time for that these days?"
Flight Centre was considered the top travel agent for value in 2025. Supplied
Travel agents are still among the most-trusted travel brands for Aussies, according to Finder's '2025 Customer Satisfaction Awards'.
Based on the feedback from over 60,000 Australian consumers, Flight Centre was considered the top travel agent for value and was also the "most recommended" by travellers.
Travel Associates was the other travel agency that received high scores for trust and service, and was named the "most loved".
Graham Cooke, head of consumer research at Finder, says you should never solely rely on AI when planning a holiday.
"Even in 2025, AI tends to hallucinate when you ask it questions – meaning if it doesn't have the information to answer a query, it can tend to just make stuff up," Graham tells 9Travel.
"Doing your own research or using travel agents is a great way to get more accurate, verifiable information about your trip.
"Generally, we are finding that consumers are using a combination of all three to plan their travel."
