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.
Platforms in travel
Travel by numbers
Search demand dropping for travel queries but CTR increasing
- Search demand is dropping across the travel industry according to Advanced Web Ranking’s Google CTR Stats – Changes Report for Q1 2025, however click-through rates have improved.
- Search demand dropped -1.44% across the travel industry in Q1 2025, however, websites ranking first on desktop experienced a boost in clickthrough rate of 1.60 pp, while on mobile, the boost equaled 1.09 pp.
- While the drop across search demand in Google is not a surprise, given AI Mode and AI Overviews, the upward trend in CTR shows higher value traffic overall.
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Travel by numbers
Travel and Tourism expected to inject $314bn into Aus economy
- Massive bounceback on the cards: By 2025, travel and tourism are expected to inject a record $314.4 billion into the Aussie economy—up nearly 33% from pre-COVID levels and making up 11.4% of GDP.
- Jobs boom incoming: The industry is set to support around 1.7 million jobs in 2025, a 100,000 increase from 2024, amounting to over 11.5% of all employment in the country.
- Spending is soaring: International visitor spend is projected to hit $39 billion in 2025 (+22% YoY), while domestic tourism spend will reach a hefty $173 billion.
- Looking ahead: By 2035, the sector could contribute over $406 billion to the economy and support 2.1 million jobs—clearly a long game with serious upside.
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Travel by numbers
Half of Aussie’s plan to spend tax refund on travel
- Half of Aussies are spending their tax refund on overseas travel – 56 % plan to use all or part of their FY 2025 tax return to fund international trips.
- Top five overseas destinations: Japan, Europe, New Zealand, Bali/Indonesia and Thailand are the most popular picks.
- Why now is a prime time: With flights, accommodation and insurance largely prepaid via savings, many are using their refund for spending money, experiences and tours.
- Less travel spend elsewhere: Only 8 % will use it on domestic trips, 6 % on cruises, and 30 % don’t plan to spend their return on travel at all.
- TravelInsurance.com.au CEO, Shaun McGowan, said: “Many Australians see their tax refund as an opportunity to book a holiday they might not otherwise afford. Mid-year is a popular time to travel, especially to places like Japan and Europe, where you can catch the tail end of summer without the crowds and inflated prices.”
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Travel by numbers
CBRE report on The Evolution of Hotel Brands in Asia Pacific
- Asia Pacific is a key focus for global hotel chains, with brand penetration still relatively low compared to Western markets, making it ripe for growth.
- Top 8 hotel companies are set to dominate, with 74% of new hotel supply in the region by 2030 tied to these players – a massive jump from their current 18% market share.
- Brand proliferation is the main strategy, with the number of brands offered by these top operators in Asia Pacific more than doubling from 58 in 2014 to 130 in 2024.
- Operators are using diverse brand portfolios to cater to different traveller segments and market conditions, aiming to boost returns and stay agile in a dynamic market.
- Consolidation reflects a broader global trend, but the pace and scale in Asia Pacific highlight the region’s increasing strategic importance.
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Travel by numbers
Insights from Global Asset Solutions’ Australia vs New Zealand Hotel Market Comparison 2025
- Tourism and investor interest are surging: The hotel sectors in Australia and NZ are bouncing back strongly, thanks to growing international tourism and renewed attention from Asian and European investors.
- Weaker currencies and cheaper debt boost deals: Foreign buyers are capitalising on more attractive exchange rates and lower borrowing costs, driving up hotel transaction volumes in both countries.
- Visitor numbers and spending exceed pre-COVID levels: Australia’s 2022-23 data shows a 2% rise in international visitor nights and 3% in spend over 2019 levels, with projections hitting 12.1 million international visits by 2028.
- New hotels are opening fast: Australia added 1,800 rooms in 2024 with more on the way; NZ is also ramping up with 1,600 rooms under construction.
- Big deals signal confidence: Q1 2025 saw hotel sales worth $676M in Australia and $250M in NZ – with NZ’s total nearly matching all of 2022.
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AI in travel
Travel by numbers
Samsung New Zealand explores the changing travel habits of Gen Z and Millennials
- Key insights from Samsung New Zealand’s study on Gen MZ (18 - 34 year olds) and travel habits:
- 30% of respondents admitted to visiting a specific place or planning an activity solely for social media content, while over a quarter (27%) would reconsider a holiday if they were unable to post about it online.
- A third (31%) of respondents said they would be comfortable letting AI plan elements of their holiday, and 43% reported spending between one and five hours on their smartphone researching their next trip.
- Ollie Brown, Consumer Insights Analyst at Samsung New Zealand, said: "It is interesting to see how phones are being used more like personal assistants for travel planning and travelling. With advanced AI technology and features in new phones like the Samsung Galaxy S25 Series, travellers can research destinations with ease, prepare bespoke itineraries using AI, and even translate foreign languages in real-time.”
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Travel by numbers
Australia’s East Coast Short-Term Rental Market During the British & Irish Lions Tour 2025
- Travel insights based on forward booking data (as of 3 June 2025) across key match and leisure destinations. Key takeaways:
- Adjusted Paid Occupancy up 3% YoY overall
- Hold Occupancy up 345% YoY
- Sydney is pacing up YoY across key performance indicators including +27.2% Adjusted Paid Occupancy, +25.6% ADR, and +13.8% in Average Stay Value
- Across the three test cities, Brisbane, Melbourne and Sydney, ADR (+28%) and Average Stay Value (+41%) are both well up YoY, indicating that while booking volumes may currently be lower, travellers are spending more per stay
- Outside host cities, popular leisure destinations like Cairns, the Whitsundays and the Gold Coast are showing high ADRs and strong Average Stay Values – potentially reflecting fans extending their trips to warmer regions beyond the core match schedule.
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Travel by numbers
NZ Government announces investment in Tourism New Zealand targeting Australian tourists
- The New Zealand Government has announced an additional NZ$13.5 million investment into Tourism New Zealand to boost international visitor numbers, particularly from Australia, the United States, and China.
- This funding aims to attract 72,000 more visitors over the next few years, supporting economic growth and the tourism sector's recovery post-pandemic.
- Tourism Minister Louise Upston emphasized the importance of this investment in maintaining New Zealand's competitive edge as a travel destination.
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Travel by numbers
Insights from the European Travel Commission’s Long Haul Travel Baraometer report
- China's Travel Intentions Surge: A significant 72% of Chinese respondents plan to visit Europe in summer 2025, marking a 10% increase from the previous year, indicating a strong rebound in outbound travel interest.
- Australia Shows Renewed Interest: Australian travellers are exhibiting increased intent to visit Europe, suggesting a positive shift in long-haul travel sentiment from the region.
- Japan's Interest Declines: Only 13% of Japanese respondents intend to travel to Europe, reflecting the impact of a weak yen and low consumer confidence on travel decisions.
- Economic Factors Influence Decisions: High travel costs and economic uncertainties are primary deterrents for potential travellers from APAC countries, affecting their plans to visit Europe.
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AI in travel
No more waiting in line: Legoland and Seaworld using AI to skip the queues
- Legoland’s Vision AI monitors real-time ride occupancy to detect when capacity drops or rises, allowing staff to quickly adjust operations and reduce bottlenecks.
- SeaWorld’s new Expedition Odyssey ride uses a rotating tower to load riders simultaneously while others are experiencing the attraction, significantly cutting down wait times.
- AI and computer vision systems are being embedded across parks to automate queue tracking and predict congestion before it happens, making line management proactive rather than reactive.
- 3D scanning and data analysis tools help engineers optimise ride loading speeds and maintenance schedules, preventing delays and smoothing guest flow.
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Travel by numbers
How APAC travellers choose to book: Digital Travel Industry report
- The top booking factor when choosing either an airline, accommodation, or activity for Australian and Chinese travellers was brand reputation.
- The top inspiration/research source for both Australian and Singaporean travellers was review/comparison sites, while Chinese travellers prefer OTAs.
- 14% of Australians made a direct purchase based on an influencer recommendation in the last year, while 27% of Singaporeans booked, and 52% of Chinese consumers booked.
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Platforms in travel
Travel by numbers
The Asian destinations topping Agoda’s search rankings
- Thailand remains the top Asian destination for European travellers this summer, leading Agoda’s search rankings for the second year running, with Indonesia, Japan, Malaysia, and Vietnam rounding out the top five.
- India is gaining momentum, with a notable rise in European interest—especially from the UK and the Netherlands—focusing on cities like Mumbai, Delhi NCR, and Goa.
- Malaysia, China, and Sri Lanka saw significant year-on-year growth in search volumes, with Malaysia up 20%, China up 14%, and Sri Lanka up 13%, driven by factors like visa waivers and increased connectivity.
- Emerging European markets such as Greece, Turkey, and Poland are showing strong growth in Asia-bound travel interest, with increases of 23%, 21%, and 17% respectively.
- Agoda’s insights highlight a broader trend of European travellers seeking diverse Asian experiences, from cultural immersion to scenic exploration, indicating opportunities for marketers to tap into evolving preferences.
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AI in travel
Platforms in travel
Agoda launches limited-time AI travel planner for India
- Agoda has launched a limited-time AI-powered Vacation Planner for Indian travellers, developed in collaboration with Google using its Gemini and Imagen AI technologies. The tool provides personalised, visually rich itineraries within seconds, based on user preferences.
- Bollywood actor Ayushmann Khurrana features as "Mr. Vacaywala", the campaign's Chief Wellness Officer, presenting hyper-personalised travel itineraries through AI-generated videos that address users by their first names.
- The AI Travel Planner is accessible via AgodaVacationPlanner.com until 30 June 2025, offering tailored trip suggestions including accommodation, dining, and activity recommendations.
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Platforms in travel
Travel by numbers
OTAs increased marketing spend in Q1
- Online travel agencies (OTAs) ramped up their marketing spend in Q1 2025, aiming to capture more market share and enhance brand visibility. Here's a quick rundown for marketers:
- OTAs' Marketing Surge: Airbnb, Booking Holdings, Expedia Group, and Trip.com Group collectively spent $4.5 billion on marketing in Q1 2025, continuing their aggressive investment in brand and customer acquisition.
- Booking Holdings' Direct Booking Focus: Increased marketing spend by 10% to nearly $1.8 billion, with a notable rise in B2C direct bookings from the low-60% to mid-60% range, indicating a successful shift towards more direct consumer engagement.
- Expedia's AI Integration: Launched an AI-powered tool, Trip Matching, allowing users to create travel itineraries based on Instagram Reels, integrating social media engagement with travel booking capabilities.
- Airbnb's Diversification: Increased marketing spend by 9.5% to $563 million, relaunched its Experiences platform with a new TV ad campaign, and targeted growth in global markets with localized strategies.
- Trip.com's Targeted Approach: Boosted marketing investment by 30% to $413 million, focusing on the silver generation with targeted content like short-form drama series to appeal to older adults.
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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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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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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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Travel by numbers
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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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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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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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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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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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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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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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
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 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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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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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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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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