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HomeAI in IndustriesAI Hospitality Adoption Reaches 33% in Canada Amid Fraud Rise

AI Hospitality Adoption Reaches 33% in Canada Amid Fraud Rise

Adyen’s 2025 Hospitality Report reveals mixed AI adoption patterns as Canadian accommodations battle rising security threats

Quick Take

  • 33% of Canadians now use AI for travel planning decisions: (Adyen 2025 Report)
  • 63% surge in AI usage among Boomer travelers: showing cross-generational adoption
  • 35% of Canadian accommodations report increased fraud attempts: requiring enhanced security
  • 86% of travelers still prefer human interactions: during their actual trips
  • 41% of hospitality businesses expect AI search tools to transform the industry:

Canadian travelers are embracing artificial intelligence for trip planning at unprecedented rates, with 33% now using AI tools for travel decisions according to Adyen’s newly released 2025 Hospitality Report. However, the surge in digital adoption comes alongside a troubling 35% increase in fraud attempts targeting Canadian accommodations, creating a complex landscape for the hospitality industry.

The report highlights a fascinating generational shift, with Boomer AI usage jumping 63%, demonstrating that technological adoption spans all age groups rather than remaining confined to younger demographics.

Generational Technology Adoption Reshapes Travel Planning

The most striking finding reveals how older travelers are rapidly embracing AI tools, with Boomers showing a 63% increase in usage patterns. This cross-generational adoption suggests AI integration in hospitality must account for diverse user preferences and technical comfort levels.

“Balancing digital convenience with in-person service is crucial for future competitiveness,” explains Sander Meijers from Adyen. The data supports this perspective, with 86% of travelers still preferring human interactions during their actual travel experience, despite using AI for initial planning.

The rapid digitization brings significant security concerns, with 35% of Canadian accommodations reporting increased fraud attempts. This trend necessitates robust technological defenses like Adyen’s Uplift suite, which uses AI-powered systems to improve payment security and transaction management.

The security challenge aligns with global regulatory demands for stronger fraud prevention measures. Canadian businesses must now balance customer convenience with enhanced security protocols to protect both their operations and guest data.

Industry Transformation Through AI Integration

Looking ahead, 41% of hospitality businesses believe AI search tools will fundamentally transform industry operations. However, fragmented payment systems remain a significant operational hurdle preventing seamless integration.

“Unified systems enhance efficiency and boost trust,” notes Phil Crawford from Adyen, emphasizing how integrated financial technology platforms become critical for maintaining competitive advantage. The integration of AI with secure payment systems offers hospitality businesses opportunities to build stronger customer loyalty while identifying new revenue channels.

Strategic Implementation Requirements

The report’s findings suggest three critical areas requiring immediate attention:

  • Technology Investment: Businesses must deploy AI solutions that complement rather than replace human touchpoints, ensuring enhanced guest experiences while maintaining the personal service travelers value.
  • Security Enhancement: Given the 35% rise in fraud attempts, implementing robust prevention measures becomes essential for protecting both business operations and customer trust.
  • System Integration: Streamlining operations through unified payment platforms provides operational transparency and efficiency gains necessary for competitive positioning.

Business Implications

Adyen’s research indicates the hospitality industry stands at a critical juncture where AI adoption accelerates alongside security challenges. Canadian businesses must prepare for an AI-driven future while maintaining the human elements that travelers continue to value.

The dual trends of increasing AI usage for planning (33% adoption rate) combined with a persistent preference for human interaction (86% of travelers) creates opportunities for businesses that can successfully blend digital efficiency with personalized service delivery.

Success will depend on implementing comprehensive strategies that leverage AI’s planning capabilities while preserving the human connections that define exceptional hospitality experiences. The rising fraud landscape makes security integration non-negotiable, requiring businesses to view AI as both an operational enhancement and a critical security tool.

HOWAYS Editorial Team
HOWAYS Editorial Teamhttps://howays.com/
HOWAYS is a trusted global voice in AI for business, covering the US, UK, Canada, Australia, India, and beyond. Led by Kumar Krishna, Founder & Lead Editor, with Gaurav Jha, Fact-Check Editor, and a dedicated editorial team, we combine AI-assisted research with human expertise to deliver accurate, originality-checked, and ethically reported insights for business professionals worldwide.
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