Travel Digital Digest
Marketing Intelligence Weekly
Weekly updates on the digital marketing news you need to know for the travel industry, including the latest news in travel, ai in the travel industry, data privacy, platform updates, travel marketing trends and more.
AI in travel
Platforms in travel
Key travel stories and quick summaries from Google I/O 2025
- Search is now an AI conversation: With the full US rollout of AI Mode and the global expansion of AI Overviews, Google Search is becoming a dynamic, conversational partner. Powered by Gemini 2.5 expect users to ask longer, more complex questions.
- Performance marketing gets an AI co-pilot: Google is integrating ads directly within these new AI experiences, including AI Overviews and soon, AI Mode. The global rollout of “AI Max for Search Campaigns” aims to leverage AI for smarter ad matching, text customisation and URL expansion.
- E-commerce & “Agentic AI” - search that does things: Google showcased “Agentic AI” (Project Mariner) capabilities where Search can complete multi-step tasks for users, like booking hotels and making travel arrangements.
- AI-driven creativity & the evolving measurement landscape: Google unveiled powerful new generative AI tools like Veo 3 for video, Imagen 4 for images, and Flow for AI-assisted filmmaking.
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AI in travel
Platforms in travel
Amadeus partners up with Google Cloud technology
- Amadeus is migrating its technical platform to Google Cloud to enhance operational efficiency, security, and innovation, aligning with its multi-cloud strategy.
- The partnership aims to improve flight search accuracy and airline offer management, potentially integrating Amadeus MetaConnect and Nevio with Google Flights and the Google Offer Management system (QPX).
- Amadeus will leverage Google Cloud's AI technologies, including Vertex AI and agentic AI, to deploy faster AI solutions and explore future applications in the travel sector.
- The collaboration is expected to benefit travel industry players and travelers by offering richer, more fluid, and comprehensive travel experiences through enhanced data analytics and management.
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Platforms in travel
Travel by numbers
Travel a top priority for Aussies according to Expedia
- Travel remains a top priority: Despite global uncertainties, 88% of Australians plan leisure trips in the next year, with 68% eyeing international travel—a 19% rise since 2022.
- Social media's growing influence: Younger audiences are more swayed by social media, with 84% saying influencer recommendations have impacted booking choices.
- Trust and reviews matter: 75% are willing to pay more for accommodations with better reviews, especially among younger travellers.
- Loyalty programs are key: 83% consider travel their top category for redeeming loyalty points, and 82% are interested in booking travel through non-travel loyalty programs.
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Travel by numbers
Japan (not Bali) is now Aussie’s favourite international travel spot
- Record-breaking Aussie arrivals: Japan welcomed 429,000 Australian visitors between January and April 2025—a 28.6% increase year-on-year and nearly half of 2024’s total Aussie arrivals.
- April sets new international benchmark: April 2025 saw Japan hit a monthly record with 3.9 million international arrivals, highlighting its growing global appeal.
- Favourable conditions fuel demand: The surge is driven by a strong AUD-JPY exchange rate, competitive flight deals, and Japan’s diverse seasonal offerings—from cherry blossoms to ski resorts.
- Shift in travel preferences: Japan has overtaken Bali as the top international destination for Aussies, with Tokyo, Osaka, and Kyoto leading in search rankings across major travel platforms.
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Platforms in travel
Travel by numbers
Cruise Lines International Association’s 2025 State of the Cruise Industry report
- Cruise passenger numbers are booming: The industry is projected to welcome 37.7 million passengers in 2025, up from 34.6 million in 2024, with an economic impact exceeding $168 billion globally.
- First-timers are driving growth: 31% of cruise passengers over the past two years were new to cruising, and 82% of all cruisers plan to sail again—highlighting strong satisfaction and repeat potential.
- Smaller ships, richer experiences: 70% of cruise ships are now small to mid-sized, reflecting a shift toward more personalised, expedition-style, and multigenerational travel experiences.
- North America leads the market: The region saw a 13% year-on-year growth in 2024, with the Caribbean, Bahamas, and Bermuda remaining top destinations—accounting for 43% of all cruise itineraries.
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AI in travel
Platforms in travel
Expedia introduces Trip Matching using AI to turn IG reels into bookable trips
- Expedia introduces 'Trip Matching': A new tool that uses AI to turn Instagram Reels into bookable travel itineraries, streamlining the journey from inspiration to booking.
- Social media meets travel planning: Users can share any public travel-related Reel with Expedia to receive personalised itineraries and destination suggestions based on the video content.
- Currently in beta: The feature is available for beta access, with full-scale availability for U.S. travellers anticipated in the coming weeks.
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Travel by numbers
Australian short-term rental data & trends for DMOs
- Occupancy Pacing Behind: Paid occupancy for Q2 2025 is pacing down significantly, with April, May and June seeing YoY drops of -2%, -8% and -5%, respectively.
- Resilient Rates: Despite weaker demand ADRs continue to climb, indicating consumer willingness to pay premiums during peak travel periods like Easter, which shifts to late April in 2025.
- Cyclone Alfred Fallout: Although physical damage was limited the cyclone’s timing in early March has likely discouraged bookings into Q2 for coastal areas.
- Economic Backdrop: Inflation is cooling (2.4% in Feb 2025), but rising interest rates and affordability concerns are keeping discretionary travel in check.
- Shorter Stays, Later Bookings: Booking windows are shortening and stay lengths are trending downward signalling increased traveller caution and last-minute planning.
- Let us know if you'd like to receive a copy of this report by Key Data Dashboard
AI in travel
Travel by numbers
CTM reveals strong AI enthusiasm among younger business travellers
- Strong AI enthusiasm among younger travellers: 41% of Millennials and Gen Zs are excited about AI in travel, with Millennials showing more optimism (66% excited, 25% concerned) compared to Gen Zs, who are evenly split between excitement and concern (41% each).
- AI expected to enhance travel efficiency: Respondents anticipate AI will improve booking speed (65%), expand travel product choices (61%), and reduce costs (60%).
- Shift towards mobile booking platforms: While 71% currently use websites for bookings, there's a growing preference for mobile apps, expected to rise from 52% to 58% in the next two years, especially in Asia where 66% favour mobile apps.
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AI in travel
Travel by numbers
AI enhances hospitality with 72% increase in positive guest feedback
- Properties using AI in guest services report:
- 72% increase in positive guest feedback.
- 59% improvement in operational efficiency.
- 55% reduction in service delivery costs.
- 85% faster response times to guest requests.
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Platforms in travel
Travel by numbers
Expedia says 60% of the users it reaches via audio are not reached by any other channel
- Expedia says leaving audio out of the marketing mix is a mistake, noting that many households engaged through audio channels aren't reached via other media, underscoring the importance of a diversified media mix.
- Expedia’s head of audio and CTV, Alex McClure, said that 60% of the households it reaches via its audio campaigns are not reached by any other channel.
- The travel industry often defaults to visual content, but Expedia's success with audio campaigns suggests that audio can effectively engage audiences, especially in a fragmented media landscape.
- Expedia's approach demonstrates that incorporating audio can enhance brand visibility and reach, particularly among demographics less accessible through traditional visual media.
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AI in travel
Platforms in travel
Airbnb rolling out AI-powered customer service bot in the US
- Airbnb is rolling out an AI-powered customer service bot in the U.S., with 50% of users already onboarded and full deployment expected by the end of May.
- The AI bot has led to a 15% drop in users needing to contact human agents, streamlining support and reducing operational costs.
- CEO Brian Chesky emphasises a cautious approach, focusing on customer service applications before expanding AI into areas like travel planning, contrasting with competitors like Expedia and Booking.com.
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AI in travel
Platforms in travel
Tripadvisor deepens partnerships with AI
- Tripadvisor Group CEO Matt Goldberg, shed light on its AI strategies in its recent earnings call. saying Tripadvisor Group saw partnerships as a way to "choose the AI leaders in the ecosystem that we wanted to learn from.”
- “With Perplexity, it puts us in a position to understand what’s happening with AI-first search, and we’ve got great content to attract high-intent traffic with an opportunity to drive hotel and experiences bookings.”
- While it’s still early, Tripadvisor Group is also “deepening its partnership” with Open AI to better understand how agentic AI can be used to reshape trip planning and booking, Goldberg said.
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Travel by numbers
CATO reveals yearly travel trends for Aussies
- Outbound travel is booming: In 2024, over 6.9 million Aussies headed overseas for holidays, marking a 21% jump from the previous year.
- Asia leads the charge: Nearly 4 million Australians travelled to Asia, with North-East Asia (Japan, South Korea) seeing a massive 73% increase.
- Touring is trending: Multi-day land-based tours saw a 48% rise in passengers, with the sector now worth over $5 billion.
- “We’re seeing more Australians value the depth and convenience that touring offers – particularly in complex or culturally rich destinations,” CATO managing director, Brett Jardine, said. “Whether it’s a traditional coach journey, a small or private group or a luxury rail journey, the appetite is strong and growing.”
- Shorter trips are in: Trips under 14 days dominate, with 7–14 day holidays up 27% and under-7-day getaways up 31% year-on-year.
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AI in travel
Platforms in travel
Travel by numbers
Google is massively expanding AI Overviews for Travel
- Google is massively expanding AI Overviews for travel related queries.
- Since the end of April, Google’s AI Overviews has grown by 108.09% for travel queries.
- Significantly, people searching for “Things to do” is up 93.78% with users looking for location-specific activities, which are then triggering full destination-specific travel guides in AI Overviews.
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Travel by numbers
Loyalty programs essential for savvy travellers with 80% relying on them to book
- Loyalty programs are now essential: Nearly 80% of travellers rely on rewards programs, with 82% stating they’d need to travel differently—or not at all—without them.
- Millennials lead the charge: This generation is the most strategic in maximising points and stretching travel budgets through loyalty schemes.
- Reward preferences vary by gender: Men favour exclusive perks like upgrades, while women prefer comfort-focused benefits such as free checked bags.
- For marketers, the takeaway is clear: tailor loyalty programs to specific demographics to enhance engagement and provide value that resonates with each customer's unique journey.
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Travel by numbers
IATA releases March data and shows APAC flying high
- APAC leads global recovery: Asia-Pacific airlines posted a 9.9% year-on-year rise in international passenger demand, the strongest growth of any region.
- Capacity outpaces demand: While demand grew, capacity increased even faster at 11.6%, suggesting airlines are betting on sustained travel appetite across the region.
- Domestic travel steadies: Domestic demand in APAC rose modestly by 0.9%, with capacity up 2.5%.
- Global context: APAC now accounts for 33.5% of global revenue passenger kilometres (RPKs), reaffirming its position as a key driver of global aviation growth.
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Travel by numbers
Hong Kong back in a big way for Aussie tourists
- Hong Kong experienced a 32% year-on-year rise in Australian visitors throughout 2024, with a notable surge in arrivals during the first quarter of 2025.
- The increase is attributed to a vibrant calendar of citywide events, including 'Super March', which featured major events like LIV Golf, Art Basel Hong Kong, and the Hong Kong Sevens at the new Kai Tak Sports Park.
- Visitor demand is currently surpassing direct air capacity, highlighting the destination's popularity.
- Karen Macmillan, Hong Kong Tourism Board director for Australia, New Zealand & South Pacific, stated, "Hong Kong is back in a big way... Aussies are clearly embracing the energy, flavour and spirit of the city once again."
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Travel by numbers
Travel ad spend is up by 9% year on year
- Travel ad spend is booming, hitting $636.7 million from April 2024 to March 2025 — that's a solid 9% year-on-year lift.
- Airlines are leading the charge, with ad spend up 15%; Emirates (+29.6%), Air New Zealand (+20.2%), and QANTAS (+9.6%) are topping the charts.
- Travel agents and online platforms like Booking.com, Ignite Travel, and Flight Centre also ramped up, with a 20% rise in spend.
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AI in travel
Platforms in travel
Singapore Airlines announces strategic partnership with OpenAI
- Singapore Airlines (SIA) has announced a strategic partnership with OpenAI. This will be the first time the tech company has partnered with a major global airline.
- The goal of the partnership is to develop generative AI solutions across multiple facets of operations for the airline, from customer service and journey planning to staff efficiency and complex scheduling.
- Travellers using the Singapore Airlines website or app will soon see a more intelligent and personalised booking experience.
- ”Whether seeking destination inspiration, flight upgrades, or last-minute itinerary changes, passengers can expect real-time, human-like responses and contextual recommendations tailored to their needs and preferences.”
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AI in travel
Attraction Tickets data explores bias in AI-generated travel recommendations
- Attraction Tickets has questioned the accuracy of travel advice given by artificial intelligence, including ChatGPT and Gemini.
- Following a data study, Attraction Tickets says that the AI recommendations were made on outdated regional stereotypes about holidayers budgets.
- The study suggested that the tools made misleading and biased assumptions about where UK families can afford to go on holiday and restricted their holiday choices.
- The study made wrong assumptions for 57% of the UK cities cited, with the tools capping travel affordability of consumers in 20 of the 35 cities.
- Attraction Tickets’ Marketing Director, Chris Bradshaw said “This study really highlights why human travel professionals remain so important. AI can offer quick suggestions, but it doesn’t understand the priorities or planning that go into making a dream holiday happen for each individual person or family.”
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AI in travel
Travel by numbers
Travel & Tourism tops list of industries adopting AI agents, second only to eCommerce
- In a recent research paper by the Digital Agency Network In Marketing We Trust participated in it was found that Travel & Tourism was one of the top industries adopting AI agents.
- Travel & Tourism at 10% was the second-most industry to adopt AI agents, sitting behind E-commerce at 20% and in-line with Education (also at 10%).
- The guide brings together exclusive insights from 28 top agency leaders worldwide on AI in marketing, including Paul Hewett, CEO of In Marketing We Trust.
- Contact us to receive a copy of the report
AI in travel
Travel by numbers
43% of those who used GenAI for trip planning booked accommodation recommended
- Deloitte’s 2025 travel industry outlook highlights the growing use of AI amongst travellers.
- Among those who used GenAI in trip planning, more than 4 in 10 say they booked accommodations recommended by the tools.
- 38% of those who used GenAI for destination planning went on to book based on the recommendations, and 34% of those who used GenAI for trip itineraries (daily or full trip) went on to book.
- The majority of those who used GenAI to get recommendations for bookings continued their research, while less than 10% did not convert to any action based off GenAI recommendations.
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AI in travel
Data privacy in travel
Expedia launches AI Playground for employees
- Expedia Group is ramping up its generative AI efforts, using custom AI agents to automate workflows and enhance internal operations, aiming to drive productivity and innovation.
- The company launched an “AI Playground” where employees can experiment with and build their own generative AI agents, fostering internal engagement and upskilling.
- Over 200 AI agents have already been built by Expedia employees, showing strong adoption and enthusiasm across departments.
- Different departments use different tools. Developers use Microsoft’s GitHub Copilot to increase code quality, while Expedia’s marketing team uses AI to search image libraries and iterate on taglines to save time.
- Expedia has a responsible AI council to ensure each use case is vetted appropriately. Shiyi Pickrell, SVP of Data and AI at Expedia Group said: “There is no compromise on responsible AI. This way we ensure AI safety, transparency, unbiased use cases and explainability.”
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Travel by numbers
Hotel bookings for Easter 2025 are up 16.8% over last year
- Hotel bookings for the 2025 Easter period have risen 16.8% compared to 2024 according to SiteMinder.
- The average increase in bookings per property this Easter has risen by 3.8 in Australia.
- Australia is also seeing a +0.87% rise in Average Daily Rate across the period.
- ”With Easter falling later this year than in 2024, we’re not just seeing stronger travel demand—we’re seeing travellers rethink how they plan.” said James Bishop, VP of Ecosystem and Strategic Partnerships at SiteMinder.
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AI in travel
Platforms in travel
Travel-specific Google AI Overviews spiked during March 2025 core update
- During March’s Google Core Update AI Overviews spiked significantly for travel-related queries.
- Between March 13 and 27 according to data shared with Search Engine Land by BrightEdge, the presence of AI Overviews grew by 381% for travel queries.
- AI Overviews also spiked across entertainment and restaurants queries.
- This increase puts travel, entertainment and restaurant queries up there with healthcare and education when triggering AI Overviews.
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Travel by numbers
More consumers believe the best rates can be found on your website over OTAs
- A recent survey by BVA BDRC highlights a shift in consumer perception, with more travellers believing that hotel brand websites offer the best rates, leading to a decline in the favourability of Online Travel Agencies (OTAs).
- In the first half of 2024, 32% of guests believed the best rates could be found on hotel websites, up from 28% in 2018, while the belief in OTAs offering the best rates dropped from 41% to 36%.
- This trend suggests that hotel brands' efforts to promote direct bookings are resonating with consumers.
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AI in travel
Travel by numbers
Over 50% of brits concerned about AI reviews when trip planning
- A recent study by Icelandair, surveying 2,000 UK travellers, reveals growing apprehension about AI-generated content in travel reviews:
- 54% are concerned about encountering AI-generated or fake reviews when planning trips.
- 44% have become more cautious of travel reviews due to the rise of AI and bots.
- 67% suspect that misleading or exaggerated reviews are AI-generated.
- This scepticism has led 70% of respondents to be less likely to book through platforms they suspect host untrustworthy reviews. Consequently, 58% now prefer recommendations from friends and family. Notably, 56% reported financial losses after acting on misleading reviews, despite 63% prioritising cost when booking holidays.
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Travel by numbers
Pacific Asia Travel Association predicts strong recovery for APAC travel
- The Pacific Asia Travel Association (PATA) has released its Asia Pacific Visitor Forecasts for 2025–2027, projecting a robust recovery in the region's tourism sector.
- International visitor arrivals (IVAs) are expected to increase from an estimated 648.1 million in 2024 to 813.7 million by 2027.
- China is expected to maintain its role as the largest source market for Asia Pacific, followed by the USA, Hong Kong SAR, South Korea, and India.
- The rising middle class in India and Southeast Asia, along with increased adoption of digital payment platforms and social media-driven travel inspiration, is fueling outbound travel growth.
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AI in travel
Travel help desk
Our hot take on agentic AI ads/solutions coming to travel searches
- Today Freddy, our Chief Innovation Officer is sharing his hot take on agentic AI ads/solutions coming to travel searches:
- Biggest winners: Airlines and savvy hotel chains with large loyalty programs will receive preferred treatment. “I anticipate that Perplexity and other agentic search solutions will include some form of connection to loyalty programs.”
- Breakeven/loss: “I can imagine a near future where OTAs become primarily a fulfillment engine. Similar to some of the variants of user experience on Google Hotel Ads and Google Flights, where users only experience the checkout process.” Given the highly qualified traffic, agentic solutions could use a CPA model rather than a CPC. In the short term, this may reduce the overall CPA and the need to invest heavily in buying the same traffic repeatedly via CPC methods. Expedia and Booking Holdings spend ~50% of their marketing budget on search ads. Any optimisation opportunity can have a material impact on their bottom lines.
- Unknown/Loss very likely: The challenge for metasearch players will be to create value in this new way of searching. Meta players will likely be the first ones to capitalise on the opportunity to be visible organically on these platforms.
- Biggest losers: Search engines themselves who have been eating away the industry margins. Inertia being the most powerful force in the universe, this won't have an immediate impact as web users will still heavily rely on Google and other search engines. Shift in user behaviour will probably be seen for tech enthusiasts and will follow the classic maturity curve.
- Contact us to discuss
AI in travel
Platforms in travel
You can now book hotels natively on Perplexity
- Cofounder and CEO of Perplexity, Aravind Srinivas said: “You can now book hotels natively on Perplexity. This was work we did together with TripAdvisor and Selfbook. We plan to bring some benefits to our Pro users like discounts on hotel bookings done natively on Perplexity. More on this soon.”
- Perplexity is also introducing answer modes to make the core search product even better for verticals: travel, shopping, places, images, videos, jobs. The next step is to get super precise that you don't have to press on these tabs. This is now available on the web, mobile to follow.
- ”Going beyond answering a wall of text and being good at structured answers for verticals with entities like images, videos, cards with built-in commercial transactions is a necessary step for being a daily-usage product and taking on Google.”
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