Conversational AI tools, including ChatGPT, have become essential components of modern travel planning. These AI-driven systems offer real-time recommendations, itinerary creation, personalized suggestions, language translation, and customer service automation. This study examines the impact of ChatGPT and similar conversational AI models on travelers’ decision-making, travel agency operations, and tourism industry transformations. Using a mixed-method approach—surveying 1,650 travelers, analyzing chatbot interactions from 42 travel companies, and interviewing 30 tourism stakeholders—the research shows that conversational AI improves decision efficiency, accessibility, personalization, and traveler confidence. However, challenges include data accuracy, bias, lack of contextual understanding in complex scenarios, and privacy concerns. The paper provides strategic recommendations for integrating ChatGPT responsibly into future travel ecosystems.