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 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.
- Read more
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.”
- Read more
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- Following a data study, Attraction Tickets says that the AI recommendations were made on outdated regional stereotypes about holidayers budgets.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.”
- Read more
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.
- Read more
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.”
- Read more
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.
- Read 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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.”
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.
- Read more
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.”
- Read more
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.”
- Read more
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.
- Read more
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.
- Read more
