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.
Travel
Travel help desk
In Marketing We Trust at NoVacancy
- We’ll be at NoVacancy this week on the 18th and 19th of September.
- The annual hotel and accommodation expo is at the ICC Sydney, and we’ll be there to learn from the exceptional speaker lineup on offer.
- If you’re going please stop by to say hello to Paul and Freddy!
- Read more.
Data privacy in travel
Travel help desk
Privacy Act changes for travel marketers
- The first tranche of the Australian Privacy Act reforms has officially entered Parliament, bringing significant changes to how organisations manage personal data.
- Stronger Enforcement: A new statutory tort for serious privacy breaches means individuals can now sue for significant invasions of privacy.
- Automated Decision-Making: Organisations must disclose how personal data is used in automated decisions affecting individuals’ rights.
- Children’s Online Privacy Code: A new compliance framework for handling children’s data is coming.
- Data Breach Provisions: Enhanced powers to manage data sharing in emergencies and during major breaches.
- While advertising-specific provisions have been deferred, it’s critical for marketers to understand the broader impacts and start preparing now.
- Read more.
- You can start preparing now by downloading our free guide on data privacy for travel marketers.
Travel by numbers
Search engines are not used by Gen Z to discover travel
- Search engines are not used by Gen Z to start their search or discover new travel experiences.
- A dominant 57% of individuals rely on social media channels for travel planning, emphasising the significant influence of digital platforms.
- Traditional sources like print and referrals hold comparitively lower percentages, indicating a shift towards online and visual mediums in shaping travel discoveries.
- Download our free guide on The Future of Search in Travel to read more.
AI in travel
Travel by numbers
Travel technology industry to reach $21 billion by 2032
- The global travel technology industry is expected to reach $21 billion by 2032, according to Travel and Tour World.
- This figure is up from $9.4 billion in 2022, with a compound annual growth rate (CAGR) of 8.6%.
- The key trends driving this growth include AI and voice search, as well as contactless payments.
- Read more.
Platforms in travel
Social media search is a discovery engine for travel
- The way people book and search for travel online is changing.
- Social media search is a discovery engine for travel.
- Most social searches and hashtag usage on social platforms are related to the discovery phase of the travel booking journey.
- Only a small amount of searches are related to the booking stage of the user journey.
- This presents travel companies with an opportunity to engage with travellers earlier on in their booking journey.
- Download our free whitepaper to learn more.
Travel by numbers
Travel giants spent more on marketing last quarter
- The sales and marketing investment of the likes of Airbnb, Booking Holdings, Expedia Group and Trip.com Group increased year over year in the second quarter.
- The marketing spend, a total of $4.6 billion in Q2 compared with $4.2 billion year over year, shows the intense competition in the market.
- At Expedia Group, marketing spend increased 14% to $1.8 billion in the second quarter, representing just north of 50% of the company’s revenue, up from 47% in Q2 2023.
- Read more.
Travel by numbers
Travel internet marketing advertisement decreased in FY24
- IAB Australia’s Internet Advertising Revenue Report for the financial year ended June 2024 is out.
- The report shows that internet marketing advertisement has grown 9.7% since FY23, to $15.6 billion in Australia, with “search and directories” taking the biggest chunk.
- While spend has increased across all industries, Travel is down -1% on FY23.
- Unfortunately we cannot share the link to this report here, however please get in touch if you'd like more information.
AI in travel
Mobi.Ai launches search tool for travel and hospitality
- Mobi.ai, a human collaborative AI company focused on delivering transformational customer experiences for the travel industry, has announced the launch of its industry-first search and discovery technology, Mobi Intent Driven Search (IDS).
- Mobi IDS combines natural language search with generative AI, Mobi's proprietary content store of 40M+ fully enriched points of interest around the world, and Mobi's advanced AI capabilities to deliver “best match” destinations, accommodations and experiences.
- “Most travelers know what they want to do on their next vacation, they simply don’t know where to go to pursue their passions,” said Mobi’s VP of Product Harriet Brown, who worked on the team that built and scaled the product behind Google Flights. “With IDS, hospitality companies don’t need to predict what a customer might want, they can listen to their intentions and provide a highly tailored recommendation of destination, property and activities to create their ideal adventure.”
- Read more.
Travel by numbers
Google’s 2024 travel trends
- Google has released its report into its 2024 travel trends in time for Christmas and Thanksgiving in the US.
- The top destinations for Christmas and New Year’s are Tokyo, Orlando, Cancun, Miami, and New York.
- Google has revealed that the cheapest time to book, based on years of aggregated US flight search data, is 38 days before departure for domestic flights, and 101 days before departure for international flights.
- Read more.
AI in travel
Platforms in travel
Travel
Travel by numbers
The Future of Search in Travel
- We have created a new whitepaper looking at the future of search in travel.
- The free whitepaper includes keyword research to better understand the way people search for travel online and the platforms they use to book and search.
- The way people book and search travel is changing.
- See how Gen Z and Millennials are using social media and AI to research and book their next trip.
- Read more.
AI in travel
Travel by numbers
AI chatbots now manage up to 80% of hotel guest inquiries
- The State of Hotel Guest Technology Report 2024 is out by Hotel Tech Report.
- The report found that AI chatbots now manage up to 80% of guest inqueries, reducing the need for staff involvement in routine interactions and increasing operational efficiency.
- The report also states that AI-driven task management is reducing response times by 30% and enhancing team productivity.
- 58% of respondents in the survey also stated that AI improves their hotel booking and stay experience.
- Read more.
AI in travel
Former Expedia exec’s startup uses AI to book travel
- Former Expedia exec’s startup uses AI to help smaller companies book travel.
- Expedia’s former SVP of consumer product, Michael Gulmann, is launching an alpha version of his product, Otto, to select US participants.
- Otto is designed to quickly facilitate flight and hotel bookings through natural language queries.
- “Think of Otto as a high-end travel agent or executive assistant that remembers your preferences, such as your choice of hotels and flights. It will also remember other nuances such as if you prefer to stay within 10 minutes of your meeting place,” Gulmann said.
- Read more.
Travel by numbers
Industry KPI data shows weak travel market
- Industry KPI data from Databox shows cost and click data for ad campaigns is highest in the healthcare sector and lowest in travel and leisure.
- Travel and leisure performance was weakest, with declining CTRs and minimal CPC changes during 2024’s first four months, which include the slower winter season.
- Average cost per click was also lowest however in the travel and leisure sector at just $0.81 in April.
- April also saw the lowest clickthrough rate however, at 6.6%, compared to 7.6% in February and March.
- Read more.
Travel by numbers
Searches for international trips up yoy
- US searches for international trips are up year over year, according to the latest Expedia Fall Travel Outlook.
- Top fall destinations for US travellers include Las Vegas, Cancun and Paris, while Indianapolis (+120%), Cape May (+60%), Tulum (+70%) and Mallorca (+70%).
- “During the spring, the top destination was driven by the solar eclipse, and this fall it’s another force of nature — the bucket list ‘Eras Tour,’” says Melanie Fish, head of Expedia Group Brands public relations.
- Read more.
AI in digital
AI in travel
Platforms
Perplexity is getting into the ads game
- Perplexity AI is getting into the ad game. Its advertisers pitch deck unveils its Q4 launch plans.
- Perplexity's unique approach will integrate ads directly within users' queries and answers.
- Perplexity has identified over a dozen “key” advertising categories for its initial launch, including technology, health and pharma, finance, and travel.
- Read more.
AI in travel
Travel by numbers
2024 strong year for travel
- According to a new infographic by EMarketer and StackAdapt, 2024 is already a strong year for travel.
- Q1 2024 broke records in travel. The quarter saw an all-time high of 15.9 million Americans who travelled internationally, according to the Mastercard Economics Institute.
- Nine of the last 10 record-setting spending days in the airline and global cruise industry were in 2024.
- 41% of US and Canadian consumers said they had recently used generative AI (genAI) to assist with travel inspiration or planning, Up from 34% in 2023.
- 52% of US consumers expect brands to use genAI to personalise shopping, travel booking, and other tasks.
- The travel industry is spending more on advertising than any other industry, up 18.4% in the US this year, above retail growth at 17%.
- Read more.
AI in travel
Data privacy in travel
Platforms in travel
Travel by numbers
Fake listings on booking sites up 500%
- Accommodation platforms worldwide are reporting an increase in fake listings.
- Booking.com’s chief information security officer Marnie Wilking told the BBC that the platform had seen an increase in scams of ‘anywhere from 500 to 900 per cent’.
- Wilking stated a key area of concern was AI chatbots, like ChatGPT which scammers are utilising.
- “The attackers are definitely using AI to launch attacks that mimic emails far better than anything that they’ve done to date.”
- In 2023, ACCC’s Scamwatch reported 363 scams involving Booking.com, a rise of nearly 600% on the previous year.
- Read more.
Travel by numbers
Australian outbound holiday travel up 26%
- According to CATO, Australian outbound holiday travel has surged 26% in Q2 2024.
- This upward trend highlights a revitalised enthusiasm for international travel, CATO said, and most notably that leisure is trending higher than other forms of outbound travel across various regions, age groups, and travel durations.
- CATO saw a significant increase to trips in South-East Asia and North-East Asia.
- Brett Jardin, CATO Managing Director, said: “The symbiotic relationship between outbound and inbound travel ensures a robust and dynamic tourism industry, vital for Australia’s long-term economic prosperity.”
- Read more.
AI in travel
AI revolutionises airline revenue management
- In an interview with Forbes, Fetcherr CEO Roy Cohen, says that airline revenue management systems, first developed in the 1950s, are due for a change via AI.
- “When you go to a legacy world like airlines, their infrastructure is ancient,” Fetcherr CEO Roy Cohen said in an interview. The trouble with the legacy revenue management systems is that, in the end, “A human being needs to make a decision” on pricing, he said. But “AI looks at millions of data points and simulates what is the best next action to reach the goal of the airline,” he said.
- WestJet spokeswoman Madison Kruger said Wednesday that their partnership with Fetcherr “will enable us to leverage AI technology in efforts to streamline and optimize our prices and inventory management, allowing WestJet to enhance guest experience and affordability, in service of our guests and our people.”
- Read more.
AI in travel
More travellers want AI
- According to a new survey by Beyond, more travellers want AI.
- A key finding from the survey revealed that AI adoption is gaining ground. While 56.1% of respondents are hesitant to use AI for trip planning, 43.9% are open to it, suggesting a gradual acceptance of AI in travel.
- “The study reveals critical insights into evolving traveler preferences, which highlight the growing need for real-time data capabilities for property managers, hosts and other hospitality professionals to re-think how they're making data-driven decisions about their business as summer travel winds down and fall and winter bookings are on the rise.”
- Read more.
Travel by numbers
North America, APAC and Western Europe the top travel markets
- According to new data by Phocuswright, North America, APAC and Western Europe are leading the way when it comes to the top travel markets.
- The global travel industry is back on track, surging by 24% in 2023 to hit $1.5 trillion. North America, Asia Pacific and Western Europe continue to lead in terms of market size.
- When expressed in U.S. dollars, all top 15 travel markets, except Russia, experienced year-over-year growth in 2023.
- Read more.
Travel by numbers
48% of Australian’s buy travel online
- According to iab Australia’s latest ecommerce report for 2024 for Australia and New Zealand, Travel is still one of the top products purchased online.
- Travel, hotels and airline bookings are being bought online by approx. 48% of Australians, however there is little change in this number since last year.
- Last year, 47% of Australians purchased travel products online, so we’re seeing a 1% rise in travel-related products bought online in 2024.
- The low rise in online shopping in travel is attributed to cost of living pressures.
- Read more. Unfortunately we are unable to share the full report with you here. Contact us if you'd like more information.
AI in travel
TripAdvisor sees early positive signs with AI ‘Trips’ planner
- Talking to Skift, TripAdvisor’s President and CEO, said they’re seeing positive early signs with their ‘Trips’ AI trip planner, which was released in 2023.
- Goldberg said travellers who have used the tool have generated an average of 15 times more revenue than TripAdvisor’s platform-wide average.
- “This higher monetization has been consistent as we’ve begun to scale our efforts, driven primarily by experiences bookings today, but with real upside as we introduce more in-app booking across other categories in the future. The formula is simple. When we keep travelers engaged on our platform, we have more opportunities to monetize — not just through clicks, but through higher value transactions as well.”
- The company recently added 20 new languages and 30 new regions to the tool, and it has scaled AI-powered review summaries for restaurants and experiences.
- Read more.
Travel by numbers
Social media the top channel for travel marketing
- According to a new survey by TravelAge West, social media is the top channel for travel marketing.
- 71% of travel advisors said social was their top channel for travel marketing, email campaigns came in second with just 19%.
- 39% of survey respondents stated that content marketing plays a significant role in their overall strategy.
- Advisors say they tailor their marketing approach by offering specialized promotions (25%); customising social media ads (24%); segmenting email lists (13%); or some combination of all of the above (39%).
- Read more.
AI in travel
Thomas Cook launches AI-powered platform to drive sales
- Thomas Cook has launched an AI-powered platform to drive sales growth in India.
- The AI-powered platform helps users to book tour itineraries.
- With AI curating itineraries, the company said: “customised trip planning will now become seamless – in under 10 minutes,”
- Read more.
Travel
We’ve started a newsletter
- In Marketing We Trust has started a travel-specific version of its popular Digital Digest newsletter.
- Like the classic Digital Digest, which focuses on news for digital marketers, the Travel Digital Digest, is a weekly newsletter where travel marketers can get the latest news in travel specific to digital marketing.
- Want to sign up and get the news delivered straight to your inbox? Simply sign up using the form below.
Platforms in travel
Travel by numbers
Flight searches up 89% to US with easier travel from Aus
- After promises of easier access, flight searches to the US are up 89%.
- The Australian government confirmed last week that Australia will be joining the US Global Entry Program from 2025.
- This means Australians will get easier access with the automated kiosk meaning quicker immigration.
- According to global marketplace and In Marketing We Trust client, Skyscanner, Aussie interest in travel to the US is at an all time high, seeing flight searches to the US rise 89% after the announcement, compared to the previous day.
- Las Vegas, Los Angeles, Orlando, New York and San Fransisco were the top picks for Aussies.
- Read more.
AI in travel
75% of buyers interested in AI travel program chatbot
- According to a new study, “The Future is Now: Technological Transformation in Corporate Travel,” published today by the Global Business Association (GBTA), and made possible by Cvent, the time for technology to transform, disrupt and accelerate business travel growth is here.
- Based on a survey of business travel professionals in North America and Europe, the report reveals that a significant opportunity exists in actively integrating advanced technologies, such as artificial intelligence (AI) and blockchain into their travel programs.
- Three-quarters (75%) of respondents/buyers said they are interested in adopting an AI-powered travel program chatbot to automatically answer questions specifically about their program.
- “As both our everyday and professional lives have ever-increasing touchpoints with technology, it is in parallel that we see the reach of the technological footprint in the business travel industry,” said Suzanne Neufang, CEO, GBTA. “The report gives a view to the potential for technology to do more, to further enable and empower all aspects of our industry to greater services, tools, platforms and achievements.”
- Read more.
AI in travel
Platforms in travel
Airbnb to take years to go fully AI
- In a major backflip on previous statements, Airbnb CEO, Brian Chesky, told Skift that “.. it will take years to rebuild Airbnb into a fully AI-powered application.”
- Previously, Chesky stated that “the company would be “rebuilding the entire app with AI at the center” by May 2024.”
- Chesky sees the future of Airbnb as an AI powered concierge service for travellers.
- Read more.
