Travel by numbers
Travel experiences projected to outpace every other travel segment by 2029
- Travel experiences are now a major growth engine — Tours, activities and attractions are projected to hit US $342 billion by 2029, outpacing every other travel segment and surpassing pre-pandemic levels with an ~8% annual growth rate.
- A structural shift is underway — Experiences have moved from an afterthought to a primary driver of trip choice, with travellers increasingly planning and booking experiences before arrival.
- Digital adoption is accelerating but still behind — Online bookings are rising fast (from ~17% in 2019 to ~42% projected by 2029), yet the sector lags overall travel in digital penetration — signalling big opportunity for digital platforms.
- Investor interest is surging — Major OTAs and platforms are expanding into experiences, with IPO plans and acquisitions underway, while many smaller operators remain fragmented — suggesting ripe conditions for consolidation and innovation.
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AI in travel
Platforms in travel
Skyscanner launches its flight app in ChatGPT
- Skyscanner (an In Marketing We Trust client) has launched a dedicated flights app inside ChatGPT, letting travellers use natural language prompts to search, compare and adjust flight options and prices without leaving the chat interface.
- The integration brings “the Skyscanner logic and prices people trust, wrapped into a more intuitive, conversational flow,” according to Skyscanner.
- The ChatGPT app is currently available in the UK and US for global flight searches, and redirects users back to Skyscanner’s site to complete bookings.
- Skyscanner joins a growing list of travel brands launching ChatGPT apps (e.g. [Booking.com](http://booking.com/), Expedia, Accor), reflecting wider industry momentum toward AI-powered, conversational search.
- Skyscanner’s chief AI officer says the firm will keep evolving travel search beyond traditional form-fills toward “dynamic, answer-led experiences”, with AI also powering its hotel and car hire tools.
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Platforms in travel
Travel by numbers
OTAs spent >$20B on sales and marketing in 2025 with paid acquisition still key
- The major online travel agencies — Airbnb, Booking Holdings, Expedia Group and [Trip.com](http://trip.com/) Group — spent a combined more than US$20 billion on sales and marketing in 2025, continuing an upward trend from ~US$17.8 billion in 2024 and US$16.8 billion in 2023.
- Big players dominate spend: Booking Holdings led with ~$8.2 billion and Expedia Group followed with nearly $7.4 billion invested, together making up over three-quarters of total spend.
- Spend still heavy on paid channels: Despite industry talk about direct channels, AI-driven efficiencies and loyalty programmes, OTAs are not meaningfully cutting reliance on paid marketing (performance, social and brand).
- Mixed strategic signals: Booking saw direct business hold steady, but invested more in social and brand in Q4; Expedia is focusing on disciplined, data-driven marketing with some AI experiments; Airbnb’s spend grew as it considers future loyalty offerings; [Trip.com](http://trip.com/) pushed spend 25% higher on promos and expansion.
- Marketing intensity remains key battle: The figures highlight ongoing competition for visibility and bookings, signalling that paid acquisition is still central to OTA growth strategies in 2025.
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Travel by numbers
Travel ad spend in NZ soars 10%
- Travel ad spend in NZ jumped ~10% in 2025, hitting about NZ$264.4m, up from NZ$240.5m in 2024 — showing strong growth driven by Kiwi enthusiasm for travel.
- Airlines dominated advertising, leading with NZ$89.6m spend (up 31.6% YoY), led by Air New Zealand, followed by Qantas and major airports; accommodation, cruises/ferries and travel agents also saw big increases.
- Consumer booking behaviour is shifting online, with 58% of Kiwis planning and booking holidays online and 18% researching online but booking via agents.
- Travel intent is high: 74% of New Zealanders would consider a cruise and nearly half plan to travel by air domestically within the next year, with UK/Europe, Sydney and Melbourne topping overseas destination interest.
- Marketers see this as competitive opportunity, with Nielsen’s data helping brands benchmark competitors and optimise where to invest to convert eyeballs into bookings.
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AI in travel
Platforms in travel
AI traffic converting better than Google says Airbnb
- Airbnb CEO Brian Chesky said “traffic that comes from chatbots convert at a higher rate than traffic that comes from Google,” based on early data shared on the company’s Q4 2025 earnings call.
- Airbnb didn’t provide specific conversion figures or volumes, but the signal suggests visitors from conversational AI may be further along in the booking process than traditional search traffic.
- Chesky framed chatbot platforms as “very similar to search” and positioned them as top-of-funnel discovery engines, with Airbnb viewing them as potential acquisition partners.
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AI in travel
Platforms in travel
Mi3 digs into travel brands Q4 earnings calls around AI search
- Airbnb is treating conversational AI as a structural reset, with CEO Brian Chesky saying “traditional search is going to essentially become conversational AI search.” AI search is live to a “very small percent of traffic” as Airbnb experiments with conversational trip planning and rethinking sponsored listings for an AI-first format.
- Expedia Group is pivoting to “answer engine optimisation” and agentic compatibility, with CEO Ariane Gorin working to ensure its brands “show up prominently in GenAI searches and function effectively with agentic browsers.” While volumes are still small, each integration is delivering data and learnings as discovery shifts from links to AI answers.
- TripAdvisor is monetising AI partnerships while learning fast, working with OpenAI and others across agentic and multimodal experiences. CEO Matt Goldberg said, “We generated meaningful revenue… across licensing revenue, link-back traffic, and integrating our products,” signalling new revenue streams as AI reshapes alliances.
- Hyatt has moved early, launching an app inside ChatGPT with a live link to [Hyatt.com](http://hyatt.com/) to complete bookings. CEO Mark Hoplamazian said the group has spent two years building AI infrastructure and governance, positioning Hyatt to capture demand as guests move from search results to direct answers.
- Yelp is rebuilding local discovery around “answers and actions”, rolling out natural language search, AI-powered business highlights and an expanded Yelp Assistant to connect conversational queries directly to bookings, orders and calls — tightening the loop between discovery and transaction.
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AI in travel
Platforms in travel
MakeMyTrip announces strategic partnership with OpenAI
- MakeMyTrip has teamed up with OpenAI to integrate advanced AI (via OpenAI’s APIs) into its app, turning casual travel conversations into structured, bookable options for flights, hotels and extras — enabling smoother planning and bookings.
- The AI boost centres on MakeMyTrip’s generative-AI assistant Myra, which now uses OpenAI tech to interpret travellers’ natural language and deliver personalised recommendations at scale.
- This move strengthens MakeMyTrip’s AI-first approach, drawing on its travel data to respond dynamically to evolving user intent and keep customers within its ecosystem.
- Myra handles 50,000+ conversations a day in multiple Indian languages with vernacular voice support — helping MakeMyTrip expand into Tier-2 and smaller city markets.
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AI in travel
Platforms in travel
Wyndham partners with Google, Anthropic, and ChatGPT to direct bookings
- Wyndham is doubling down on AI distribution, partnering with Google, ChatGPT and Anthropic to power conversational hotel discovery and booking. CEO Geoffrey Ballotti said, “Soon, guests will be able to discover Wyndham properties through natural conversational interactions… [with] seamless direct bookings within AI mode.”
- The brand has integrated with Anthropic’s Claude for conversational search and is rolling out intent-driven travel search on ChatGPT via Mobi, with bookings expected to go live in Q2 2026. Ballotti called it “an early glimpse of how AI native distribution will reshape the way guests find and book our hotels.”
- The strategy is focused on boosting direct booking capture and improving guest experience, positioning AI platforms as new distribution channels rather than just marketing tools.
- Costs are currently minimal, with Ballotti noting it was “less than $100,000 to connects our MCPs to the LLMs,” and confirming there are “no transaction costs” at present as bookings redirect to Wyndham’s brand.com.
- Monetisation models may evolve, with Ballotti flagging potential ad-based models in future: “Looking forward, you’ll see ads that seek to monetize some of that… but we’ll see.”
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AI in travel
Hotel Chatbots in 2026: Booking vs Guest Service Roles
- Hotel chatbots now sit at the centre of revenue and service, not just website support.
- Booking chatbots focus on conversion, answering pricing and availability questions to drive direct reservations and upselling.
- Guest service chatbots support the full stay, handling requests, routing tasks and improving response times.
- The two serve different moments in the journey but work best together as part of a unified AI strategy.
- Platforms like TrustYou combine booking, guest service and staff support into one integrated AI system.
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AI in travel
China’s Super App Model Signals AI Led Hotel Booking Shift
- AI is shifting hotel booking decisions from travellers to algorithms that filter and select options.
- OTAs are automating pricing and distribution, reducing manual roles.
- China’s super apps show how discovery and booking can be fully integrated and algorithm led.
- Success now depends on structured, machine readable data rather than brand visibility alone.
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Platforms in travel
Google Tests Travel Ad Formats in AI Mode
- Google is testing new ad formats in AI Mode, including for travel, allowing brands to appear naturally within AI driven search conversations.
- Sponsored retailer placements will sit alongside organic recommendations, clearly labelled and integrated into discovery moments.
- Google has also launched Direct Offers in AI Mode, enabling tailored promotions to boost conversions.
- The updates support Google’s broader push towards agentic commerce, following the rollout of its Universal Commerce Protocol.
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Platforms in travel
Amadeus Shutting Down Self-Service API Portal
- Amadeus will shut down its self service developer portal on July 17 and disable existing API keys.
- The Enterprise portal remains unaffected.
- Critics say the move limits experimentation, especially as AI reshapes travel booking.
- Some warn it could slow innovation and push developers towards competitors.
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AI in digital
AI in travel
Chatbot Retargeting Comes to AI Search
- Evertune has introduced a way for brands to retarget users after they interact with AI answer engines.
- Ads are served on websites users visit after clicking through from a chatbot session, capturing high intent traffic.
- The approach uses contextual and probabilistic targeting, signalling that traditional digital tactics are moving into AI search environments.
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Travel
Travel by numbers
Direct Hotel Bookings Hold Firm in 2025, Despite OTA & AI Pressure
- Direct hotel bookings remained steady in 2025, holding their share despite growing pressure from OTAs and AI-led discovery tools.
- Hotel websites delivered the highest value per booking, reinforcing why direct channels matter for revenue, not just volume.
- Traveller behaviour is stabilising, with longer booking windows, fewer cancellations and slightly longer stays.
- The takeaway for hotels: keep investing in website UX, booking flows and metasearch to protect and grow direct demand.
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AI in travel
Korean Air Rolls Out AI Chatbot Across Digital Channels
- Korean Air has rolled out a generative AI chatbot across its website and app to improve customer support with more natural, conversational responses.
- The chatbot now supports 13 languages, making it easier for global travellers to get accurate, policy-based answers quickly.
- Customers can switch to a human agent mid-chat, with English and Korean support built in.
- More features are coming, including bookings and reservation management, as Korean Air expands the tool over time.
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Travel
Travel by numbers
Key Travel Trends for 2026
- Luxury travel is leading demand, with high-end experiences — including expedition cruises to Antarctica, the Galápagos and Arctic — plus yacht-style cruising and premium river journeys growing in popularity.
- Solo travel continues to expand across all ages, with more suppliers offering solo-friendly pricing and even couples planning individual trips alongside joint vacations.
- Remote work blended with leisure is shaping travel behaviour, as travellers extend stays and structure days to mix work with sightseeing and cultural experiences.
- Group travel among friends & family remains strong, with multigenerational and small group experiences — even including independent travellers who meet up socially — on the rise.
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Travel
Travel by numbers
$4.2 Trillion Growth and Major Shifts in Global Travel by 2050
- Travel demand is set to surge, with Google forecasting 1.9 billion more trips and US$4.2 trillion in growth by 2050 as travel becomes more mainstream globally.
- More people will travel more often, with participation rising to around 70% of the population and international travel volumes doubling.
- Asia-Pacific will lead growth, overtaking Europe in outbound travel and spend, while domestic travel still dominates overall trip volume.
- AI will reshape trip planning and booking, making AI-optimised content critical for travel brands to stay discoverable.
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Travel by numbers
Travel advertising increased 12% in 2025 fuelled by consumer demand
- Overall travel advertising jumped 12% in 2025, reaching about $684.1 m versus $610.7 m in 2024 — fuelled by strong consumer demand for travel.
- Airlines: Qantas leads the airline category, followed by Virgin Australia International, Jetstar, Emirates and Malaysia Airlines.
- Travel agents/tour operators: Flight Centre is the biggest spender in this segment, ahead of Booking.com, Scenic Tours Australia, Ignite Travel and TripADeal.
- Cruise: Cruise advertising climbed ~9%, with Viking River Cruises topping this list.
- Destinations: Tourism & Events Queensland was the largest tourism authority advertiser, ahead of South Australian Tourism Commission, Tourism Tasmania, Destination NSW and the Northern Territory.
- Digital planning is now nearly universal, about 85% of Aussies use the internet for trip planning, and over half prefer booking accommodation online.
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AI in travel
Platforms in travel
ALL Accor app launched in ChatGPT
- Accor has launched its ALL Accor app inside ChatGPT, letting travellers search for hotels using natural language and specify dates, guests and destinations right within ChatGPT.
- The app shows both public and loyalty (ALL) member rates plus key property details like room types, amenities and locations before redirecting users to Accor’s booking platform to complete reservations.
- It’s available in 20+ languages in markets where ChatGPT apps are supported, positioning Accor early in AI-powered travel search and planning.
- Accor says the move enhances convenience, personalisation and loyalty value, and is a distinct tool separate from its traditional mobile app.
- This follows broader travel industry adoption of ChatGPT apps by platforms like [Booking.com](http://booking.com/) and Expedia as a new distribution channel.
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AI in travel
Platforms in travel
Google launches City Guide to provide AI-powered personalised travel recommendations
- Google is piloting an AI-powered “City Guide” in the Google Arts & Culture app, designed to inspire travellers with personalised cultural recommendations, not just maps and logistics.
- The tool tailors suggestions based on user interests, location and timing (e.g. “today” or “this weekend”), pulling from categories like landmarks, museums, events and lesser-known local spots.
- City Guide is currently live in 11 major global cities (including Paris, Tokyo, Berlin and New York), signalling Google’s intent to test inspiration-led discovery in high-traffic destinations first.
- For marketers, this reinforces Google’s shift toward AI-driven, interest-based travel discovery, creating new pressure to optimise cultural content, events and experiences for relevance — not just search visibility.
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AI in travel
More consumers going to travel advisors with AI-built plans
- More travellers arriving with AI-built plans: Travel advisors are increasingly seeing clients turn up with ready-made itineraries generated by AI tools like ChatGPT, a shift from when advisors traditionally built plans from scratch.
- Not always perfect: Some AI itineraries miss key travel realities — one example mentioned a plan that didn’t factor in a three-hour drive between activities — showing gaps in context and local insight.
- Clients still need guidance: While many travellers enjoy using AI for trip inspiration, some lack confidence to book without professional support, signalling ongoing demand for human expertise.
- Advisors see upside: Most advisors interviewed were positive about AI’s role, seeing tools as a way to save time and boost efficiency — but emphasised that experience and personal insight remain invaluable.
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AI in travel
WiT unveils APAC 2026 travel trends
- AI transforms travel planning — AI adoption is rising fast across APAC, with a growing share of travellers using tools for itinerary building, real-time translation and personalised recommendations, shifting behaviour toward hyper-personalised travel commerce.
- Secondary cities gain traction — Searches and interest in lesser-known destinations like Fukuoka and Denpasar are outpacing traditional hotspots, driven by domestic travel growth and a desire for new experiences.
- Experience and culture lead demand — Culinary, cultural and entertainment experiences (e.g., major events, pop culture tours) are key motivators for travel, boosting intra-regional travel.
- Value-driven travel shapes decisions — Cost remains a priority for many APAC travellers, with a strong preference for affordable accommodation and more frequent, shorter stays.
- Connectivity and accessibility improve — Expanded flight networks, relaxed visa norms and more seamless digital payments are making travel across APAC easier and more appealing.
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Travel by numbers
Western Australia hits historic milestone with highest-ever international visits
- Historic international visitor milestone: Western Australia welcomed 1.024 million international visitors in the year to October 2025, marking the highest number ever recorded and signalling a full rebound from pandemic lows.
- Outperformed pre-COVID levels and forecasts: This figure exceeded the pre-pandemic record of 996,000 and saw WA recover faster than the rest of Australia, positioning it as a tourism leader nationally.
- Strategic campaigns drove demand: Major global marketing efforts — including the Walking On A Dream brand and celebrity-led initiatives like Drive the Dream with Daniel Ricciardo — helped boost awareness and bookings.
- Events & connectivity boosted appeal: High-profile events (e.g., WWE: Crown Jewel, Bledisloe Cup), expanded aviation links to 20 cities and cruise tourism reaching 160% of pre-COVID levels further spurred visitation.
- Strong economic impact: Tourism now underpins 120,000+ jobs and supports over 30,000 tourism/hospitality businesses, reinforcing its role in WA’s economic diversification strategy.
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AI in travel
Travel by numbers
AI traffic across travel searches surged across holiday period
- Travel saw a massive 539% YoY spike in AI-driven visits, making it one of the top-growing sectors for generative AI traffic, just behind retail. Big opportunity here for discovery-focused travel brands.
- AI-referred traffic delivers higher value — these visitors convert better, spend more time on site, and bounce less, suggesting strong alignment with high-intent travellers planning trips or comparing offers.
- Consumers trust AI travel suggestions: Almost half of users trust generative AI results, and 81% said it enhanced their shopping experience — this trust translates well to travel planning.
- Search experience = booking influence: With AI tools reshaping how people search, plan and compare destinations, having optimised content and presence across AI ecosystems is crucial.
- Timing matters: The report shows extended peak digital activity periods — for travel, this could mean longer booking windows and more flexible campaign planning across the season.
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AI in travel
Travel by numbers
Social media and AI drive travel bookings in 2026
- Travel in 2026 is all about bold, immersive and culturally rich experiences — driven by a shift to maximalism, creativity, and authenticity, with travellers favouring deeper engagement over surface-level sightseeing.
- Social media drives bookings: 76% of travellers share trips online, 72% cite creators as booking influences, and nearly 50% choose destinations based on Instagrammability. TikTok Go now even enables direct hotel bookings via influencers.
- AI is now a mainstream travel tool — used by 40% of travellers (even higher among Gen Z and millennials), while 35% of major travel firms referenced AI in 2024 reports. Still, experts warn that human oversight remains key.
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AI in travel
Gen AI is hijacking the travel planning funnel – Harvard Business Review
- Generative AI is disrupting the travel discovery funnel — AI tools like ChatGPT and Google’s Gemini are now answering travel planning questions directly, reducing the need for travellers to visit traditional aggregator sites like Expedia and Booking.com for inspiration and search.
- Online travel platforms’ core value is being eroded — These aggregators historically made money by capturing early intent (search traffic), monetising ads and transaction fees — but AI’s conversational interfaces are pulling that critical engagement point away from them.
- The “gateway role” is under threat — As AI keeps users in its ecosystem longer and answers more planning questions upfront, travel platforms risk losing influence over decisions, upsells and cross‑sell moments that drive revenue today.
- Platforms must evolve beyond efficiency — HBR argues that to stay relevant, incumbents need to shift from functional cost‑efficiency to building emotional, personalised and engaging experiences that keep travellers involved throughout the journey.
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AI in travel
Travel by numbers
Travel set to surge in 2026 by the numbers
- Global travel is surging toward $1.67 trillion in bookings, with the wider travel and tourism sector contributing $11.7 trillion to global GDP and supporting 371 million jobs — showing real post‑pandemic strength.
- Online travel bookings are set to top $1.07 trillion, growing at ~8% year‑on‑year, while OTAs will account for $408 billion, with APAC leading the charge in both digital and market growth.
- AI is now mainstream in trip planning — 58% of U.S. travellers used AI tools in 2025, and 39% used them specifically for travel planning, reshaping how and where consumers start their journey.
- Search is slipping, socials are rising — younger cohorts are ditching Google as the trip starting point in favour of TikTok, Insta, and AI‑powered suggestions.
- Big spenders want more than points — high‑value travellers are shifting focus to personalisation and experience over loyalty perks, while short‑term rentals and luxury travel continue to see digital‑driven growth.
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AI in travel
PwC report uncovers AI gaps in tourism and hospitality
- AI is now a must-have in hospitality, powering hyper-personalised guest experiences, smarter customer journeys, and leaner operations — a goldmine for marketers to elevate brand loyalty and ROI.
- 91% of brands are dabbling in AI, but only 3% have scaled it fully — presenting a huge competitive edge for marketers who can bridge the tech-talent gap and push AI beyond pilot mode.
- Legacy tech and lack of AI-ready talent are stalling progress — meaning marketing teams with strong martech strategies can lead the charge in transformation and innovation.
- AI’s biggest wins are in predictive analytics, segmentation, and automation, helping marketing teams optimise spend, boost personalisation, and uncover guest behaviour trends at scale.
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AI in travel
Platforms in travel
Agoda launches Booking Form Bot AI chatbot to reduce drop-offs
- Agoda has introduced a new AI chatbot called the Booking Form Bot to help travellers with questions during the checkout stage of booking.
- The bot appears directly on the booking page, giving users instant, context‑aware answers about cancellation policies, promo codes, price details and more without leaving the page.
- Agoda’s own research showed that a significant share of users backtrack from the booking page to re‑check details, so this tool aims to reduce drop‑offs and friction.
- This builds on Agoda’s existing AI suite — extending capabilities beyond general property questions to directly improve conversion at the final purchase step.
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Platforms in travel
Travel by numbers
Paid vs organic Google Hotel Finder experiment
- An experiment by The Cornell Center for Hospitality Research shows when Google Hotel Finder’s free organic link is enough, and when investing in paid ads actually drives extra demand and revenue for hotels.
- Paid visibility meaningfully boosts total demand and shifts more bookings into direct channels when a hotel has high availability but low organic impressions.
- When organic exposure is already strong or inventory is tight, running paid ads delivers little incremental benefit.
- The findings give hotels an evidence‑based playbook for deciding when to activate or pause paid participation on Google Hotel Finder.
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