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.

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71% of AI-generated travel recommendations incorporate first-party customer reviews
AI in travel Travel by numbers

71% of AI-generated travel recommendations incorporate first-party customer reviews

  • Customer reviews are crucial: 71% of AI-generated travel recommendations incorporate first-party customer reviews, highlighting their importance in shaping AI outputs.
  • Platform differences: Perplexity AI leads with 100% of its responses using customer reviews, while ChatGPT and Google Gemini include them in 58% and 56% of cases, respectively.
  • Query intent matters: AI platforms are more likely to use reviews for commercial (43%) and informational (33%) queries than transactional ones (24%), suggesting a focus on user intent.
  • First-party reviews boost visibility: Brands with verified, first-party reviews are more likely to be featured in AI-driven search results, underscoring the value of authentic customer feedback
  • Feefo’s CEO, Tony Wheble said: “Our study highlights that customer reviews play a vital part in whether or not your brand is visible when people are using AI as a search engine. They have proved to have a critical role in the customer journey, especially in travel, by providing trusted insights for informed decisions.
  • “As AI tools continue to become more influential in travel planning, authenticity will matter more than ever. These systems learn from the data they’re given – so if they rely on unverified reviews, they risk delivering unreliable results. Verified, trustworthy feedback will be key to ensuring AI-driven recommendations remain credible and valuable.”
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Trip.com Managing Director for EMEA, Andy Washington, talks AI
AI in travel Platforms in travel

Trip.com Managing Director for EMEA, Andy Washington, talks AI

  • Can you speak about the role of AI across your platform? AI touches nearly everything—customer service, translation, data analysis, site conversion, imagery, and content generation. It’s not replacing people; it’s evolving their roles. Our AI tools allow us to personalise experiences, from hotel recommendations to travel itineraries.
  • What about users with no browsing history? Can AI still help them? Yes. With TripGenie, users can simply say “I like jogging” or “I want a hotel with a certain view,” and AI will respond like a human agent. It doesn’t just recommend top hotels near a subway station—it gives options based on your individual preferences. The more you engage, the smarter it gets.
  • Are you partnering with companies like OpenAI? Yes, we work with OpenAI and other platforms, and also build a lot of proprietary tools ourselves. We have over 10,000 engineers globally, which gives us speed and flexibility.
  • What emerging travel behaviours are you most focused on? Personalisation and content-driven bookings are huge. The future of OTAs isn’t just showing five hotels near a station—it’s giving you the right hotel for you, based on your habits, values, and preferences. And we’re just getting started.
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Webjet CEO talks AI and doubling TTV by 2030
AI in travel Travel by numbers

Webjet CEO talks AI and doubling TTV by 2030

  • Webjet aims to double its Total Transaction Value (TTV) to $3.2 billion by 2030, focusing on customer-centric strategies and leveraging AI and technology to meet evolving consumer demands.
  • Helloworld has increased its stake in Webjet to 15%, signaling confidence in Webjet's potential and possibly setting the stage for future collaborations or strategic moves.
  • CEO, Katrina Barry, said: “For most of last year and well into January, we went through a really rigorous, substantive, deep dive into the business, with clear-eyed objectivity. That’s hard for a business that has been as successful as it has, which has been doing its thing for such a long time. It was about being really honest with ourselves. Where is AI going? Where is tech going? What do consumers want?”
  • “One thing I’ve learned about customers is their problems don’t change, just how quickly they want you to solve it does, so I want that to be seamless. I want to be easy. I want it to be so convenient, and I want it to be at the touch of my finger immediately.”
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Corporate Traveller reports premium economy is on the rise for corporate bookings
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Corporate Traveller reports premium economy is on the rise for corporate bookings

  • Premium Economy on the Rise: Corporate Traveller reports a 35% year-on-year increase in premium economy bookings for March 2025, despite a 9% uptick in average international return fares.
  • Balancing Comfort and Cost: With business and first-class fares climbing more steeply, premium economy is becoming the go-to for companies seeking a middle ground between comfort and budget.
  • Top Routes and Industries: London, Singapore, Los Angeles, Las Vegas, and Shanghai are the most popular destinations for premium economy bookings, particularly among sectors like manufacturing, construction, IT, and finance.
  • Room for Improvement: Travel advisors suggest enhancements to premium economy offerings, such as access to business lounges, increased seat width, deeper reclines, better privacy, and more legroom.
  • Airlines Leading the Pack: Singapore Airlines tops the list for premium economy experience, followed by Qantas and Air New Zealand.
  • Corporate Traveller global managing director, Tom Walley, said: “Lowest airfares are no longer the number one priority for business travellers. Many organisations are recalibrating value, balancing comfort, productivity and employee wellbeing against price. Premium economy is increasingly seen as the sweet spot for long-haul travel.”
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Key travel stories and quick summaries from Google I/O 2025
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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Amadeus partners up with Google Cloud technology
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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Travel a top priority for Aussies according to Expedia
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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Japan (not Bali) is now Aussie’s favourite international travel spot
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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Cruise Lines International Association’s 2025 State of the Cruise Industry report
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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Expedia introduces Trip Matching using AI to turn IG reels into bookable trips
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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Australian short-term rental data & trends for DMOs
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
CTM reveals strong AI enthusiasm among younger business travellers
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 enhances hospitality with 72% increase in positive guest feedback
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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Expedia says 60% of the users it reaches via audio are not reached by any other channel
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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Airbnb rolling out AI-powered customer service bot in the US
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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Tripadvisor deepens partnerships with AI
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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CATO reveals yearly travel trends for Aussies
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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Google is massively expanding AI Overviews for Travel
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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Loyalty programs essential for savvy travellers with 80% relying on them to book
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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IATA releases March data and shows APAC flying high
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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Hong Kong back in a big way for Aussie tourists
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 ad spend is up by 9% year on year
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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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Singapore Airlines announces strategic partnership with OpenAI
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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Attraction Tickets data explores bias in AI-generated travel recommendations
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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Travel & Tourism tops list of industries adopting AI agents, second only to eCommerce
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
43% of those who used GenAI for trip planning booked accommodation recommended
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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Expedia launches AI Playground for employees
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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Hotel bookings for Easter 2025 are up 16.8% over last year
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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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Travel-specific Google AI Overviews spiked during March 2025 core update
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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More consumers believe the best rates can be found on your website over OTAs
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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