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
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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AI in travel
Platforms in travel
New Google features for trip planning
- Google is rolling out new features for trip planning.
- With AI Overviews in Search, you can now get trip ideas, not just for big cities, but also for distinct regions and entire countries. The AI Overview will show with photos and map locations.
- You can also price track hotels now. Just like with Google Flights you can now monitor alerts for hotel prices for chosen destination and dates.
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AI in travel
Travel by numbers
Adobe report highlights AI shift in travel planning
- A recent Adobe report highlights a significant shift in how travellers are planning their journeys:
- Surge in AI-Driven Travel Planning: Traffic to U.S. travel, leisure, and hospitality websites from generative AI sources skyrocketed by 1,700% in February 2025 compared to July 2024, indicating a growing reliance on AI tools for trip planning.
- Enhanced User Engagement: Travellers using generative AI for planning exhibit a 23% lower bounce rate on travel sites, suggesting they arrive more informed and ready to engage with content.
- Popular AI Use Cases: Among users leveraging AI for travel, top activities include general research (54%), seeking travel inspiration (43%), finding local food recommendations (43%), and planning transportation (41%).
- High Satisfaction Levels: An impressive 84% of consumers who used generative AI for travel-related tasks reported an improved planning experience, underscoring the value AI brings to the travel industry.
- Conversion Rates Lagging: Despite increased engagement, traffic from generative AI sources is 9% less likely to convert into bookings compared to other sources, suggesting that while AI aids in research, travellers may still prefer traditional methods for finalising purchases.
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AI in travel
Platforms in travel
Google ditches its AI-driven trip planner expected last year
- Google has stopped the release of its AI trip planner, initially showcased in May 2024, with no new launch date announced.
- A Google spokesperson told Skift: “Google is still adding AI tools that can help with travel, but a dedicated trip planner expected last summer is no longer on the roadmap”.
- The trip planner was designed to create personalised itineraries by integrating data from users' Gmail accounts, such as flight details and reservations.
- Despite the delay, Google continues to enhance its AI capabilities in travel planning through Gemini Advanced, offering features like personalised travel recommendations by connecting with other Google services.
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Travel by numbers
Singapore, Tokyo, and Hong Kong dominate APAC business traveller destinations
- According to BCD Travel's 'Cities & Trends 2025 Asia Pacific' report:
- Top APAC Business Hubs: Singapore, Tokyo, and Hong Kong are the most visited cities by business travellers in the Asia-Pacific region, thanks to their strategic locations and robust economies.
- Intercontinental Favourites: Frankfurt, London, and San Francisco lead as the top intercontinental destinations for APAC business travellers.
- Surge in Tokyo Visits: Tokyo experienced a 38% increase in business travel visits, securing its position as the second most visited city in the region.
- Dominance of Singapore: Singapore remains the most visited APAC country, bolstered by visa-free policies, increased flight capacities, and reduced fares.
- Travel Class Preferences: Within APAC, 84% of flights are booked in economy class, whereas intercontinental travel sees an even split, with 45% each for business and economy classes.
- These insights highlight the evolving preferences and trends among APAC business travellers, offering valuable information for marketers targeting this dynamic segment.
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AI in travel
Platforms in travel
Promising early results for Booking.com’s AI Trip Planner
- Early results from Booking.com and Open AI’s AI Trip Planner have been promising. Booking.com has stated it’s seen “increased user engagement, faster searches, reduced customer support contacts, and increased booking confidence.”
- ”Booking.com's leadership attributes the success of this project not only to OpenAI's technology but also to its collaborative approach.”
- The AI Trip Planner allows users to ask open-ended questions, generate destination suggestions, build itineraries, and provide real-time availability and pricing data.
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Travel by numbers
Australian solo travel is on the rise with Aussie’s spending more on leisure
- Aussie solo travellers are increasingly seeking freedom, wellness, and unique experiences, according to a Canvas8 report. Here are the key takeaways:
- Solo travel is on the rise: In 2024, 65% of Australians planned a solo trip, highlighting a shift towards personal exploration over group travel.
- Significant investment in leisure: Australians intended to spend an average of $9,131 on leisure getaways in 2024, with nearly a quarter budgeting over $5,000 for their trips.
- Demand for authentic experiences: Solo travellers are choosing hotels and tour providers that offer unique, immersive experiences, moving away from traditional group tours.
- Wellness and self-care focus: Younger generations, particularly Gen Y and Z, are gravitating towards wellness retreats and opportunities to disconnect from daily pressures.
- Cultural immersion: There's a growing interest in educational, hands-on experiences with traditional custodians, fostering a deeper connection to Australia's land and heritage.
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Travel by numbers
Inbound tourism and Aussie getaways on the rise according to Big Red Group
- The 'Seasonal Experiences Index: Spring/Summer 2025' from Big Red Group reveals promising trends for Australia's tourism and experience industry:
- Inbound tourism is making a strong comeback, with international bookings up by 84% year-on-year, particularly from China, Taiwan, and Korea.
- Australians are opting for shorter getaways, as evidenced by significant increases in Sightseeing Tour Getaways (+675%), Country Getaways (+53%), and Beach Getaways (+55%).
- Cultural experiences are on the rise, with bookings for Art Gallery & Museum visits up by 30.1% and Art & Crafts Classes experiencing a 101.4% increase.
- Major sporting events are boosting tourism, with V8-related purchases increasing by 32% year-on-year, and inner-city bookings during the Melbourne Grand Prix up by 67%.
- Wellness tourism is thriving, as the Spa category has grown by 125.3% year-on-year, reflecting a heightened focus on self-care and relaxation among travellers.
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Data privacy in travel
Travel by numbers
Travelers Prioritise Payment Security in Booking Decisions
- Over 70% of travelers prefer to book with companies known for secure payment systems.
- 67% of respondents would reject a 5% discount from companies with poor cybersecurity; a 38% discount is needed to consider such bookings.
- Globally, 50% of travelers have experienced payment fraud, with Brazil reporting an alarming 89% victim rate.
- 63% of travelers hesitate to save payment information with travel companies due to fraud and data privacy concerns.
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Travel by numbers
The Role of Social in the Travel Journey
- A Skift report found that 32% of travelers now rely on social media for trip planning, surpassing traditional sources like Google, review sites, and official tourism websites.
- A Stelico Consulting Group survey revealed that 76% of U.S. luxury travelers chose a hotel, cruise line, or airline based on social media content.
- Social media strongly influences the Dreaming and Planning phases of travel but is not yet widely seen as a direct booking platform by travelers.
- As platforms evolve, brands in the hospitality industry must refine their strategies to engage travelers earlier in their decision-making process.
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AI in travel
Yanolja and Google Cloud Collaborate to Enhance AI in Travel
- Yanolja, a global travel technology leader, has partnered with Google Cloud to integrate advanced AI tools, aiming to enhance personalization and efficiency in the travel industry.
- This collaboration focuses on refining AI-driven services such as automated check-ins, real-time travel assistance, and AI-based customer support, enhancing the overall travel experience.
- Yanolja's extensive network includes over 1.33 million hotels and travel enterprises across 206 countries, positioning this partnership to significantly impact the global travel sector.
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AI in travel
Platforms in travel
Travel by numbers
Travel Industry’s $17.8 Billion Marketing Spend Faces AI-Driven Transformation
- Massive Marketing Investments: In 2024, leading online travel agencies, including Expedia Group, Booking Holdings, Airbnb, and Trip.com Group, collectively invested $17.8 billion in marketing efforts.
- AI's Potential to Optimise Spending: The integration of artificial intelligence in marketing strategies offers the potential to enhance targeting precision and automate content creation, potentially reducing these substantial expenditures.
- Emerging AI Tools: Innovations such as Navifare's AI-driven flight price comparison tool exemplify how AI can streamline processes and offer cost-saving solutions to consumers.
- Shifting Consumer Expectations: Travelers increasingly anticipate AI-enhanced services, such as personalised itinerary planning and real-time assistance, indicating a shift towards more intelligent and efficient travel experiences.
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AI in travel
Platforms in travel
Manus is Changing Travel Planning with AI-Powered Itineraries
- Comprehensive Itinerary Creation: Manus, developed by Butterfly Effect, can generate detailed seven-day travel plans, including maps, attraction descriptions, essential phrases, and travel tips.
- Autonomous AI Capabilities: Unlike traditional chatbots, Manus functions as an autonomous agent, handling tasks independently rather than just generating suggestions.
- Potential Industry Impact: Experts are debating Manus’s ability to book travel services directly across multiple platforms, signaling a shift in AI-driven trip planning.
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AI in travel
WTTC and Trip.com report highlights “mission-critical” AI in travel and tourism
- The World Travel & Tourism Council (WTTC) along with Trip.com Group have reported at ITB Berlin that there are 16 transformative technologies destine to revolutionise the travel and tourism sector.
- The first transformative technology of course is AI. The report predicts that by the end of the decade, AI technologies will automate travel searches and bookings.
- The report highlights that 94% of industry leaders see AI as mission-critical with AI-powered assistants such as Trip.com’s TripGenie seeing a 200% increase in usage in 2024.
- ”With 91% of travel businesses planning to increase their tech investments, the industry is on the brink of its most significant transformation since the dawn of the Internet.”
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AI in travel
Will travel metasearch continue with agentic AI? Experts respond
- Will metasearch remain relevant with agentic AI’s rise? That was the question Phocuswire posed to a few of the top names in travel.
- Mike Coletta, senior manager of research and innovation at Phocuswire said, “So, on the one hand, maybe that will make them [metasearch platforms] very good at building an agent of their own that is superior to others but on the other hand, if other agents, like Operator, work better than theirs, their value will diminish.”
- Steve Hafner, co-founder and CEO of Kayak said “I'm not concerned about it at all, if anything it’ll help metasearch. It's easier to book on OTAs, and they have standardized customer service, neither of which Kayak does a particularly good job with. So you know, when we look at agentic AI, we don't see a threat. We see an opportunity: Finally, we can level the playing field on booking ease of use, and also we can intercept a lot of customer service issues within the Kayak experience, not having to route them to a supplier, to an OTA.”
- Johannes Thomas, CEO of Trivago said “…I think that's the avenue next to using AI for our search product, building a wall behind value propositions… Better prices, exclusive deals, price alerts. These are features that a gen AI would struggle to get their head around.”
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Travel by numbers
Global air travel up 10% in January, with strong growth in APAC
- Global air travel demand surged by 10% in January 2025 compared to the same month in 2024, with a record-high load factor of 82.1%.
- International travel demand rose by 12.4%, achieving a load factor of 82.6%, marking an all-time high for January.
- Domestic travel demand increased by 6.1%, with an 81.2% load factor, also setting a January record.
- Asia-Pacific carriers performed particularly well with 33% of world-share, reflecting strong growth in the region's air travel sector.
- “We’ve seen a notable acceleration in demand this January, with a particularly strong performance by carriers based in the Asia-Pacific region. The record high load factors that accompany this strong demand are yet another reminder of the persistent supply chain issues in the aerospace sector,” said Willie Walsh, IATA’s Director General.
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Travel by numbers
Aussie online travel audience peaks in January 2025 according to Ipsos iris
- 18.8 million Australians aged 14+ viewed online travel websites and apps in January 2025.
- The audience peaked over December and January, with total time spent in January up 9% month on month and 16% year on year.
- January 2025 has the highest audience on record for airline websites and apps in January at 10.1 million, while total time spent on resort & home sharing websites and apps lifted 26% MoM in January.
- Unfortunately we cannot share the report from iab Australia and Ipsos iris here. Please get in touch if you’d like a copy.
Travel by numbers
Similarweb SEO benchmark report in travel
- The Similarweb SEO benchmark report for 2025 is out. For the travel industry, the trends are in:
- Traffic in the travel industry is stagnant in 2024, with major players dominating, but consumer loyalty remains fluid—travellers compare multiple platforms before booking.
- Trust is crucial—once users find a reliable travel site, they tend to complete their booking there, making trust-building key to engagement and conversions.
- Travel sites have low loyalty but high organic traffic, particularly at the bottom of the funnel, meaning SEO efforts should focus on high-intent queries like booking and itinerary planning.
- Engagement metrics are strong—users explore multiple pages and spend more time on well-optimised travel sites due to the complexity of trip planning.
- Growth opportunities include optimising for high-intent search queries and improving UX to create a frictionless booking experience.
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AI in travel
Travel by numbers
Flight Centre Travel Group reports profit and credits artificial intelligence
- Flight Centre Travel Group (FLT) reported a $117 million underlying profit before tax for the first half of FY25, marking a 7% year-on-year growth.
- The company credited artificial intelligence (AI) initiatives for boosting customer experience and operational efficiency, with expectations of a 15-20% productivity increase in the corporate sector by FY26.
- Total transaction value (TTV) rose by $365 million to $11.7 billion, with corporate transactions contributing $6 billion and leisure $5.5 billion.
- Australian international ticket sales increased by 12%, although average fares declined by 6.5% year-on-year.
- The board declared an interim dividend of 11 cents per share, fully franked, payable on 17 April, bringing total post-pandemic returns to over $150 million.
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Travel by numbers
Outbound travel increased 13% YoY with Asia leading the way
- The global tourism industry made a robust recovery in 2024, with outbound travel increasing by 13% year-on-year, matching pre-pandemic levels.
- Asia led this resurgence with a substantial 33% rise in outbound travel, though still 15% below its previous peak.
- European and Latin American outbound travel grew by 9%, while North America saw a 7% increase compared to 2023.
- Spain remained the top destination, followed by the USA, with Germany, France, and Italy also in high demand.
- Leisure travel, particularly sun and beach holidays and city breaks, dominated the market, and the business travel sector expanded, primarily driven by growth in the MICE segment.
- Looking ahead to 2025, the outlook remains positive, with a continued interest in outbound travel.
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Travel by numbers
Flexibility and hassle-free travel top Aussie’s wishlists
- AAT Kings' recent research reveals that 70% of Australians aged 45+ plan to prioritise domestic travel over the next 12 months, with flexible, hassle-free experiences topping their wish lists.
- Cost is a major factor, with 62.7% of respondents citing lower expenses compared to international trips as a key consideration.
- Travel agents are becoming increasingly influential, with 57% of travellers consulting them during the inspiration phase and 63% during booking—a notable rise from previous surveys.
- For guided tours in Australia and New Zealand, value for money (65%) and safety (41.8%) are top priorities, with cultural experiences, outdoor activities, and food & wine experiences being particularly popular.
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Travel by numbers
Singapore set to break tourism records in 2025
- Singapore is set to break its all-time international arrivals record in 2025, with projections nearing 16 million visitors—9.6% above pre-pandemic levels.
- A significant boost is expected from Indian tourists, with arrivals anticipated to rise from 1.11 million in 2019 to 1.25 million in 2025.
- Chinese visitor numbers are also on the rise, projected to reach almost 2.8 million in 2025, setting the stage for further growth in 2026.
- In 2024, Singapore's Travel & Tourism sector was projected to contribute $66.1 billion to the economy, accounting for 9.8% of GDP, and supporting a record 570,000 jobs.
- By the end of the decade, the sector's economic contribution is expected to approach $80 billion, 19% above its previous high in 2019, with employment in Travel & Tourism forecasted to exceed 637,000 jobs.
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Travel by numbers
APAC hotel investments to surge in 2025
- Over 72% of investors plan to increase their hotel investments in the Asia Pacific region in 2025, driven by a surge in tourism, especially in Japan, Singapore, and Australia, according to a study by CBRE.
- Tokyo leads as the most sought-after destination for hotel investment, followed by Sydney, with Seoul and Bangkok sharing the third spot.
- There's a noticeable shift in investor interest towards upscale and upper midscale segments, with value-add strategies like rebranding and redevelopment gaining popularity due to high construction costs.
- Despite strong investment activity, prime hotel assets in key markets remain in high demand, with some investors awaiting clearer signals on future interest rate cuts before making significant decisions.
- The continued growth in outbound Chinese tourists and increasing interest from institutional investors are expected to support sustained growth in the Asia Pacific hotel market throughout 2025.
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Travel by numbers
Queensland Airports see record growth in January
- Queensland Airports Limited (QAL) welcomed 760,000 passengers in January, marking a post-pandemic record across its four airports.
- Gold Coast Airport saw over 622,000 passengers, making it the fifth busiest month on record for both the group and the airport.
- Regional airports experienced significant growth: Townsville and Mount Isa reported their third busiest Januarys, and Longreach Airport saw a 14% increase in passengers compared to January last year.
- QAL's Chief Commercial Officer, Adam Rowe, highlighted strong demand on key routes, with nearly 90% seat occupancy between Gold Coast and major cities like Sydney and Melbourne.
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Travel by numbers
A look at the global hotel industry growth in RevPAR
- In 2024, the global hotel industry demonstrated resilience, with demand reaching 4.8 billion room nights—an increase of 102 million from 2023—and a 3.7% growth in Revenue per Available Room (RevPAR).
- Urban markets experienced significant demand acceleration, while resort and leisure-focused areas began to normalise. The return of group, corporate, and international travel, coupled with slowed supply growth, is projected to drive a 3% to 5% global RevPAR growth in 2025.
- The EMEA region outperformed 2019 levels by 25.3% in 2024, partly due to major events like Taylor Swift's Eras Tour and the Paris Olympics, as well as a strong US dollar.
- In contrast, the Asia Pacific region saw modest RevPAR growth of 1.6%, hindered by visa challenges and China's slowing economy, despite a surge in international travel driven by weaker local currencies.
- In the Americas, RevPAR reached a historic high as of November 2024, with a 1.9% year-over-year increase. This growth was tempered by declining consumer savings and a noticeable reduction in leisure travel.
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