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 help desk
Google Hotel Ads Shake-Up Puts Direct Bookings at Risk
- Google will retire its third-party hotel rates feed on 30 September 2026, meaning hotels that rely on Google's automatically sourced pricing will need to switch to a direct price feed or approved connectivity partner to remain visible in Google Hotel Ads.
- The change affects some of Google's highest-intent booking surfaces, including the Hotel Booking Module, Google Hotels and Travel Promotion Ads. Performance Max campaigns will still run, but they will lose access to hotel-specific inventory if a compliant feed isn't in place.
- This is more than a technical update. Hotels will need to implement a new pricing feed, meet Google's price accuracy requirements, and rebuild Hotel Ads campaigns, a process that can take weeks or months.
- Hotels that delay the transition risk losing visibility, increasing their dependence on OTAs and paying higher commission costs as direct bookings decline.
- The broader takeaway for marketers is that Google is raising its standards around real-time data quality and integrations, making technical infrastructure an increasingly important part of digital marketing strategy.
- Read more
Platforms in travel
Google Expands Demand Gen for Travel Advertisers
- Google has added business data feeds to Demand Gen campaigns, allowing travel brands to create dynamic ads without needing a Google Merchant Center feed. Instead, advertisers can use structured business data such as destinations, packages or availability.
- The update is designed for travel, real estate and automotive advertisers, opening up dynamic ad capabilities that were previously focused on ecommerce.
- For travel marketers, this means campaigns can automatically tailor creative based on audience interests and available inventory, reducing the need for manual ad updates while improving relevance.
- There is one catch. Business data feeds currently only work on the Google Display Network within Demand Gen campaigns, rather than across all Demand Gen inventory.
- Read more
AI in travel
Travel by numbers
Tours Lead the Race for AI Search Visibility
- Tour operators came out on top according to a recent study on AI search readiness, scoring an average of 52 out of 100, ahead of online travel agencies (43), destination marketing organisations (38), hotels (31) and airlines (27).
- Only 23% of the 100 travel brands audited met the threshold to be considered "AI-ready". The highest-performing brands consistently published rich destination content, updated pages regularly, used multiple schema types and linked to credible third-party sources.
- Europe is leading AI search preparedness, with 35% of brands classified as AI-ready, compared to 21% in Asia-Pacific and just 12% in the Americas. The Americas also recorded the lowest average score, despite being home to many of the world's largest technology companies.
- Technical SEO remains a major weakness. Eighty-five percent of brands had at least one significant issue, with missing FAQ schema the most common problem, followed by structured data, sitemap and page speed issues.
- The research suggests brands can improve AI visibility through relatively simple fixes, including implementing FAQ schema and structured data, adding visible content update dates, and investing in more destination-focused content.
- Read more
AI in travel
AI Hospitality Alliance Unveils Industry AI Roadmap Teams
- The AI Hospitality Alliance has launched eight specialist workstream committees, bringing together 54 contributors from 32 companies to develop practical AI standards, frameworks and technical blueprints for the hospitality industry.
- The committees will focus on key priorities including agentic AI protocols, middleware orchestration, scalable AI architecture, AI-ready data standards, visibility KPIs, AI readiness and AI governance. The goal is to create shared resources the industry can build on.
- All outputs will be reviewed by the Alliance's Advisory Board before being released as open source resources, giving hospitality businesses and technology providers free access to implementation guidance and best practice.
- The Alliance says additional committees will be formed as its roadmap evolves, and is inviting hospitality and technology professionals to propose new workstreams or join future committees.
- Read more
AI in travel
Platforms in travel
Mindtrip Wants to Make Destinations AI-Visible
- AI travel platform Mindtrip has launched Answer Intelligence, a tool designed to help destination marketing organisations (DMOs) understand the questions travellers are asking AI assistants and optimise their content to appear in AI-generated answers.
- The platform is powered by millions of traveller conversations across Mindtrip and its DMO partners, giving destinations insights into emerging travel interests, regional trends and content gaps that could be limiting AI visibility.
- Mindtrip says unpublished research with MMGY Travel Intelligence, Sabre and Sojern found 70% of DMOs have experienced declines in organic search traffic linked to AI, highlighting the growing need to optimise for AI discovery rather than traditional search.
- Beyond identifying content gaps, the tool generates AI-assisted content recommendations and benchmarking insights, helping destinations improve their chances of being cited and recommended by AI search experiences.
- Read more
AI in travel
DFAT Warns Against Blind Trust in AI Travel Planning
- Australia's Smartraveller has published new guidance urging travellers to treat AI as a starting point for trip planning, not a replacement for trusted research. The advice comes as AI becomes increasingly popular for planning overseas holidays, with 30% of Gen Z Australians already using it.
- While AI can quickly generate personalised itineraries, recommend accommodation and help with budgeting or translation, it can also produce inaccurate, outdated or incomplete information because it doesn't verify its sources.
- DFAT warns that relying on AI for visa requirements, local laws or safety advice can have serious consequences. Its research found 28% of Gen Z travellers use AI for visa information, 27% for safety advice and 19% for local laws and customs.
- Common AI mistakes include recommending closed hotels, outdated flight schedules, incorrect visa rules, unavailable attractions and inaccurate costs. It may also miss important safety warnings or fail to flag destinations with changing risks.
- DFAT's warning is another sign that AI-generated content is increasingly being scrutinised by trusted institutions. As consumers rely more on AI for recommendations, brands need to ensure accurate, up-to-date information is easily accessible across official channels, as that content is more likely to influence what AI surfaces.
- Read more
AI in travel
Travel by numbers
AI Won’t Kill OTAs, But It Will Cut Margins
- The biggest AI threat to online travel agencies (OTAs) isn't disintermediation. Instead, analysts believe AI will squeeze profit margins by increasing customer acquisition costs and forcing OTAs to compete more aggressively on value.
- Consumer appetite for AI travel planning is growing quickly. BTIG found more than 60% of travellers have already experimented with AI, with strong willingness to use it for inspiration, research and itinerary building. Around 40% would also trust AI to book flights or accommodation.
- Despite the hype, today's AI tools still fall short. Platforms like ChatGPT, Gemini and Claude are good at destination ideas and itinerary planning, but lack meaningful personalisation, live pricing and end-to-end booking capabilities.
- BTIG argues OTAs remain well positioned because of their deep behavioural data, supplier relationships and massive marketing budgets. Rather than replacing OTAs, AI is more likely to become another customer acquisition channel, with partnerships bridging the gap between AI planning and booking.
- AI currently drives only around 0.4% of OTA traffic, making traditional search a much bigger competitive battleground for now. The bigger long-term question is whether AI assistants will gradually chip away at the roughly 40% of OTA traffic that still comes from paid search.
- Read more
AI in travel
Hospitality Industry Launches Open AI Use Case Hub
- The AI Hospitality Alliance, in partnership with HEDNA, has launched the hospitality industry's first comprehensive, crowdsourced catalogue of AI use cases, designed to build a shared knowledge base for the sector.
- Hoteliers, technology providers, consultants and other hospitality professionals are encouraged to contribute real-world or pilot AI use cases by selecting a system on the interactive map and submitting their experience.
- Contributors are asked to explain the problem AI solves, how it improves hotel operations, the benefits achieved and, optionally, which AI tools were used.
- The submission process takes around 60 seconds, making it quick and easy for the industry to share practical AI applications and learn from one another.
- The initiative aims to make proven AI use cases more accessible across the hospitality industry, helping businesses identify practical opportunities to adopt AI with greater confidence.
- Read more
AI in travel
Study Shows AI Is Reshaping Hotel Discovery
- The latest J.D. Power North America Hotel Guest Satisfaction Index found AI is beginning to influence how travellers research and evaluate hotels. While still in its early stages, the shift signals a new competitive battleground for hotel brands.
- AI adoption is strongest among younger travellers. Nearly half of guests using AI during the hotel research process are Millennials, while almost a quarter are Gen Z, highlighting where behaviour is changing first.
- The study suggests discoverability is evolving beyond traditional search. As travellers increasingly turn to conversational AI for personalised recommendations, hotels will need to ensure their information is accurate, structured and easy for AI systems to interpret.
- Strong guest experiences remain critical in an AI-driven landscape. J.D. Power notes that positive reviews, operational excellence and consistently high satisfaction are likely to become even more influential as AI tools recommend accommodation.
- While guest satisfaction reached a multi-year high, the research points to AI as the industry's next major challenge. Hotels will need to continue investing in service while adapting their digital presence for AI-powered discovery.
- Read more
AI in travel
Platforms in travel
Travel by numbers
Travel AI Visibility Is Shifting to Research
- Travel has one of the strongest AI Overview footprints of any industry. 48% of commercial travel keywords now trigger AI Overviews, the second-highest share across all industries behind Internet & Telecom, while 14% of transactional travel keywords trigger AI Overviews, ranking third overall.
- Between November 2025 and April 2026, the share of commercial travel SERPs featuring AI Overviews increased 38.64%. Google is increasingly surfacing AI-generated answers while travellers research destinations, accommodation and experiences.
- At the same time, the share of transactional travel SERPs with AI Overviews fell 26.26% over the same period. This suggests Google is placing greater emphasis on AI during the consideration phase, while leaving booking-focused searches more open to traditional results.
- The broader trend aligns with Semrush's finding that AI Overviews are expanding fastest across commercial intent searches. For travel brands, influencing travellers early in their planning journey is becoming just as important as capturing them when they're ready to book.
- For travel marketers, the priority is clear: optimise content for high-value research queries where AI Overviews are growing, while continuing to invest in SEO and paid search for booking-focused keywords that still rely more heavily on traditional search results.
- Read more
AI in travel
Travel by numbers
APAC Hotel Bookings Enter a New Competitive Phase
- APAC hotel booking growth is slowing as the post-pandemic rebound fades, with D-EDGE reporting growth has cooled to just 2.7%. Hotels can no longer rely on rising demand alone and need to be more deliberate about how they manage their distribution mix.
- Agoda has overtaken Booking.com as the region's leading OTA, growing its share from 16.4% in 2022 to 20.9% in 2025. It was also the only major OTA still growing in Q1 2026, while Booking.com and Expedia both recorded declines.
- Direct bookings are losing ground despite being the highest quality channel. Direct share slipped from 11.8% to 11.2% between 2022 and 2025, with an even sharper decline in early 2026, suggesting many hotels are underinvesting in SEO, metasearch and booking experience.
- AI is changing how travellers discover hotels rather than where they book, with its impact currently strongest in search and content discovery. D-EDGE recommends hotels focus on strengthening their digital presence and organic visibility now, ahead of AI-driven booking behaviour becoming more significant.
- Read more
Travel by numbers
What New Search Data Reveals About Travel Discovery
- Travel discovery is shifting from Google-style links to AI-generated answers and social video search. According to SocialSeal data presented at WiT Japan, travellers are using contextual searches on TikTok, Reels and Shorts, with 3.08 billion short-form video views showing growing interest in Japan's secondary destinations.
- Secondary destinations need to reduce uncertainty, not just inspire. Travellers are more likely to book when content clearly shows the atmosphere, transport routes and logistics, with a "see the vibe, verify the route" mindset replacing traditional travel research.
- Regional destinations like Fukuoka, Nagoya and Hiroshima are attracting attention by pairing inspiring visuals with practical travel guidance. Content that explains transport connections, day-trip routes and how to navigate the region is outperforming generic destination marketing.
- Different Southeast Asian markets search differently. Singaporean travellers prioritise efficient transport, Malaysians look for food-first itineraries, Thai travellers seek exclusive experiences, Indonesians focus on scenic group-friendly locations, while travellers from Vietnam and the Philippines prefer clear, easy-to-follow travel loops.
- The report's key takeaway for marketers is simple: great visuals generate interest, but practical information drives bookings. Content should answer specific traveller questions around transport, timing, dining and accessibility at the moment search intent is highest.
- Read more
AI in travel
Platforms in travel
How KAYAK Is Reinventing Search With AI
- KAYAK is shifting travel search from keyword and filter-based queries to intent-led discovery, allowing users to describe what they want in natural language while AI translates that intent into relevant, bookable results.
- The company is using AI to improve search performance, not replace it. Ask AI works alongside the traditional results page, combining conversational refinement with real-time comparison to help users make faster, more confident decisions.
- Search quality depends on trust. By surfacing live pricing and availability from hundreds of travel partners, KAYAK ensures AI-generated recommendations remain accurate, relevant and actionable.
- KAYAK's approach highlights a broader shift for marketers: AI search experiences will succeed when they reduce friction and improve relevance, rather than simply adding another chatbot interface.
- As AI-powered search grows, brands will need to optimise for visibility beyond traditional search engines while continuing to create useful, trustworthy content that performs across AI-driven discovery platforms.
- Read more
AI in travel
Platforms in travel
Holibob Launches Prompt-based Booking System in Google’s Things To Do
- Holibob has launched what it claims is the first prompt-based experiences booking system integrated directly into Google's Things to Do, allowing travellers to discover and book activities using natural language instead of keywords and filters.
- Rather than searching for specific attractions, users can describe what they want, such as "a romantic weekend with something on the water", and receive curated recommendations, compare options and complete their booking without leaving the conversation.
- For marketers, this signals another shift in Google's search experience towards AI-powered intent matching over traditional keyword search. Brands may need to optimise for conversational discovery, not just search rankings.
- The integration reinforces Google's ambition to make planning and booking happen within its own ecosystem, reducing friction between discovery and purchase while giving AI a larger role in commercial search journeys.
- Read more
Travel by numbers
Asian Travellers Are Rewriting the Booking Journey With Social First
- Half of APAC travellers now book trips independently, with social media replacing travel agents as the biggest influence on where they go. Up to 80% of destination decisions are now shaped by social platforms, while only 7% book through a travel agent.
- Discovery and booking are rapidly merging. YouTube is the leading source for travel research, TikTok GO lets users book hotels and experiences without leaving the app, and XiaoHongShu now reaches 130 million monthly outbound travellers, making content a direct path to conversion.
- AI is becoming part of the booking journey, but trust differs by market. Between half and almost all Asian travellers now use AI for planning depending on the survey, with higher confidence in markets like the Philippines and Taiwan than Japan and South Korea.
- For travel brands, the implication is clear. Winning bookings increasingly means showing up where travellers discover destinations first, with social content, creator ecosystems and AI-assisted planning becoming as important as traditional booking channels.
- Read more
AI in travel
Travel by numbers
AI Drives Travel Planning, But Trust Stops at Checkout
- Digital travel planning is now the norm, with 81% of consumers using online platforms to plan trips and 26% already turning to AI tools like ChatGPT and Gemini for travel research.
- Trust in AI drops sharply when money is involved. Just 17% of consumers would trust an AI travel assistant to handle payments or passport details without human oversight.
- Security concerns remain a major barrier, with 47% worried about payment security and 39% concerned about receiving fake or invalid tickets when booking online.
- Booking friction is costing travel brands sales. Only around one-third of consumers report a smooth booking experience, while 53% say identity verification steps sometimes or often cause them to abandon a booking.
- Read more
AI in travel
Platforms in travel
Skyscanner Expands AI Travel Planning Toolkit
- In Marketing We Trust client, Skyscanner, has launched a suite of AI-powered travel features, led by Explore with AI, which lets travellers search using natural language prompts like budget, travel style or season instead of fixed destinations and dates. The tool returns personalised recommendations with flight prices, weather, travel times and AI-generated insights.
- Early testing suggests strong consumer interest, with 60% of 14,000 beta users clicking through to flight options recommended by the AI. This highlights growing demand for conversational, personalised travel discovery experiences.
- Skyscanner has also introduced a real-time Flight Tracker, giving users live updates on departures, arrivals, gate changes, terminals, flight status and baggage belts across millions of flights worldwide.
- The platform's DROPS fare alert feature has been upgraded to surface up to 822% more daily flight deals, scanning around 100 billion fares and flagging flights that have dropped by at least 20% over the previous week.
- Skyscanner has expanded its accommodation offering from 3.5 million to more than 5 million properties, broadening its inventory beyond hotels to include hostels, campsites, capsule hotels, farm stays and floating accommodation as it continues investing in AI-driven travel planning.
- Read more
AI in travel
Travel by numbers
APAC Travel Demand Surges But Tech Gaps Remain
- Travel demand is set to grow across APAC, with 65% of travel professionals expecting business growth over the next two to three years. Confidence is even higher among loyalty professionals (78%), with India (82%) and Australia (76%) leading expectations.
- Growth is expected across multiple travel segments, with more than 60% of respondents forecasting increases in luxury, budget, bleisure and intra-APAC travel. India is tipped for the strongest outbound growth, while India and Hong Kong SAR are expected to lead inbound growth.
- Traveller expectations are shifting quickly, with 60% saying local and diverse payment options have become more important. More than 70% now see buy now, pay later, global payment cards and loyalty redemption as essential booking features, while 59% report growing demand for AI-powered booking tools.
- Technology challenges could limit growth, with 35% citing legacy systems and integration issues, 34% struggling with discoverability across search and AI platforms, and 33% lacking localised content. Although 79% of businesses already use AI and 97% plan to adopt it, many are still working to realise its full value.
- “APAC is one of the fastest growing but most complex travel markets in the world,” said Aileen Chan, VP of Sales, APAC, Expedia Group. “While demand is clearly increasing, our research shows that complexity across payments, content, and technology remains a major barrier.”
- Read more
AI in travel
Platforms in travel
Agoda Brings AI-Powered Trip Planning to Travel
- Agoda has launched a suite of new features that use AI and real-time updates to make trip planning and travel management easier, with the goal of reducing traveller stress and improving decision-making.
- Travellers booking flights through Agoda's iOS and Android apps will now receive live notifications with flight status, gate changes, terminal information, check-in counters and baggage carousel details throughout their journey.
- The platform has introduced an AI-powered hotel browsing experience that matches guest reviews with relevant hotel images, helping users quickly evaluate specific rooms, pools, restaurants and other amenities before booking.
- Agoda has also expanded multilingual support for flight-related chat queries and upgraded its booking engine so travellers can book hotels, flights and activities in a single transaction, with everything managed in one "My Trips" dashboard.
- Read more
AI in travel
Booking.com: Don’t Chase Every AI Shiny Object
- Booking.com’s Chief Business Officer James Waters says travel brands should stay focused on traveller and partner needs rather than getting distracted by the latest technology trends.
- While AI is generating excitement, Waters believes there’s still a major gap between consumers finding AI interesting and trusting it to make travel decisions on their behalf.
- He argues that travel’s emotional and financial stakes make AI adoption more complex than in many other industries.
- Read more
Travel by numbers
Hotel Tech Merger Targets Guest Spending Growth
- Hotel commerce platform RealTime Reservation has acquired guest experience app STAY, creating a combined platform serving more than 2,000 properties across 75+ countries.
- The deal brings together pre-arrival planning, upselling and in-stay services such as dining, wellness and activity bookings into a single guest journey.
- The acquisition reflects the growing importance of ancillary revenue, as hotels look beyond room bookings to drive growth and loyalty.
- Read more
Travel by numbers
Chinese Travellers Put Flexibility First
- New research shows 67% of Chinese travellers prioritise flexible or refundable bookings, as geopolitical tensions and travel disruptions increase uncertainty.
- Awareness of refund protection products is high in China (73%), with purchase intent reaching 88%, highlighting growing demand for risk-reduction tools.
- Nearly 30% of travellers are delaying bookings, with almost half of Chinese travellers waiting until closer to departure before committing.
- For travel marketers, flexibility is becoming a key conversion driver, with reassurance and booking protection playing a bigger role in purchase decisions.
- Read more
Platforms in travel
Expedia Automates More Travel Agent Workflows
- Expedia TAAP has launched a new back-office API that automatically syncs booking and commission data with agency systems, reducing manual admin work.
- Travel advisors can now add their own reference codes to bookings, making it easier to track trips, manage clients and reconcile commissions.
- Real-time booking and earnings notifications give agencies better visibility and allow Expedia TAAP data to flow directly into operational and financial systems.
- Read more
AI in travel
Lastminute.com Cuts Jobs to Fund AI Push
- Lastminute.com plans to cut 25% of its workforce as part of a major restructuring designed to accelerate AI adoption across the business.
- The company expects the changes to deliver €16 million in annual savings from 2027, with funds redirected into AI, data infrastructure and specialised tech talent.
- Management says AI is reshaping how travellers discover and book trips, making early adoption critical to staying competitive.
- Read more
AI in travel
Platforms in travel
Virgin Takes Flight Search Into ChatGPT
- Virgin Australia has become the first Australian airline to launch flight search functionality directly inside ChatGPT, allowing travellers to search fares, destinations and Velocity Reward Seats using natural language prompts.
- The new experience lets users describe their travel needs conversationally and compare cash fares, Points + Pay options and Reward Seat availability in one place, removing the need to jump between multiple web pages.
- For marketers, it's another sign that AI is rapidly becoming a discovery and commerce channel. Virgin is effectively bringing its booking experience into a platform millions of Australians already use for research and decision-making.
- Virgin Australia CEO Dave Emerson called the launch "a significant milestone for Virgin Australia and Velocity Frequent Flyer and for the future of travel", adding: "We're giving our customers a faster, more intuitive way to plan and book their trips, all within a platform many are already using every day."
- OpenAI ANZ Head of GTM Satya Tammareddy said: "Australians are already turning to ChatGPT to plan, compare and make everyday decisions, and travel is a natural extension of that shift." Virgin has also flagged future ChatGPT features including international flight search, partner airline rewards, seat map insights and day-of-travel flight information.
- Read more
AI in travel
Platforms in travel
Travel by numbers
Why Most Hotels Are Invisible to ChatGPT
- Lighthouse analysed more than 4,500 ChatGPT prompts and found that AI recommendations are heavily concentrated among a small group of hotels. In some markets, up to 90% of hotels never appeared in recommendations, creating a significant visibility challenge.
- Large hotel chains have a major advantage. Marriott alone captured more than a quarter of all branded hotel mentions in the US, while independent hotels were significantly underrepresented compared to their share of available inventory.
- AI strongly favours four and five-star hotels, even when users provide little detail in their search. The language used across hotel websites, OTA listings and editorial coverage plays a key role in determining which traveller segments AI recommends properties to.
- Around 82% of the information AI uses for hotel recommendations comes from OTAs, metasearch platforms and editorial sources. However, when travellers click through from AI recommendations, they are most often directed straight to hotel websites, making AI visibility a growing direct-booking opportunity.
- Read more
Travel by numbers
Hotels Struggle to Keep Pace with Video-First Travel Discovery
- YouTube has now overtaken Netflix in average daily viewing time, highlighting a major shift in consumer behaviour that is reshaping how travellers discover and book trips. Hotels are finding it difficult to keep up with the speed of these changes.
- Radisson Hotel Group says hotels have a "speed problem", with legacy technology and operating models struggling to adapt to increasingly fragmented customer journeys across search, social, video and AI-powered platforms.
- Video is becoming a critical part of the booking funnel. Google reported strong growth in travel-related YouTube searches and views, while TikTok says 80% of travellers have had purchase decisions influenced by user-generated content on the platform.
- Video platforms are rapidly moving from inspiration to transaction. Google is integrating shopping features into YouTube, while Booking.com and Expedia have joined TikTok's new in-app booking programme, increasing pressure on hotel brands to be present where travellers are consuming content.
- Hotels need to rethink their commercial strategy by bringing marketing, distribution and revenue management closer together, investing in real-time data feeds, and partnering with technology providers that can help them adapt faster to emerging channels and AI-driven discovery.
- Read more
AI in travel
Platforms in travel
Expedia’s AI Lesson: Trust Before Speed
- Expedia Group says its early chatbot experiments revealed a key issue: travellers quickly lose trust when AI responses are not grounded in real booking, inventory and reservation data. The company found that generic AI answers led users to abandon the experience.
- “And so when we shipped this chatbot, we tried to see what kind of questions people were asking, and slowly we realized that if we weren't grounding our generic responses in our data, in our inventory, in our rates of reservations, customers were just like, ‘this is not working for me, I'm going to leave.’” Shilpa Ranganathan, chief product officer at Expedia Group.
- After pulling back from some early AI initiatives, including its Romie assistant, Expedia spent the past year investing in AI foundations, evaluation frameworks and scalable architecture rather than rushing new features to market.
- Chief Product Officer Shilpa Ranganathan stressed that AI experimentation is easy to start, but success should be measured by customer adoption and whether the technology solves a real user problem, not by the novelty of the AI itself.
- Expedia is encouraging employees across the business to test AI use cases, while balancing experimentation with accountability for delivering tangible customer value.
- One of the biggest challenges isn't the technology, but organisational change. Expedia sees AI adoption as a culture and change-management challenge, requiring employee buy-in, access to tools and clear links between AI projects and business outcomes.
- Read more
Travel by numbers
Hostels Face Growing OTA and Pricing Challenges
- Cloudbeds’ 2026 State of Hostels Report, based on 32 million bookings across 180 countries, found the hostel sector is becoming increasingly fragmented, with performance varying significantly by region, accommodation type and operating model.
- OTAs continue to strengthen their grip on hostel bookings, accounting for 73.7% of bookings globally. Some markets now exceed 80% OTA reliance, creating greater dependency on intermediary platforms.
- OTA bookings also drove significantly higher cancellation rates, with 20.7% of OTA reservations cancelled compared to just 9.2% for direct bookings, highlighting the value of direct booking strategies.
- Looking ahead to 2026, key growth opportunities include experience-led travel, longer stays from digital nomads, sustainability initiatives and AI-powered operations, while operators increasingly seek unified technology platforms to simplify management and improve performance.
- Read more
Travel by numbers
New Data Shows Travellers Prioritising Local Escapes
- Domestic travel is accelerating across G20 markets, with the share of hotel searches made within travellers' own countries rising from 54.1% to 57.5% year-on-year in Q1 2026. By April, 60% of hotel searches were domestic, signalling a clear shift towards staycations and closer-to-home travel.
- North America is leading the trend, with domestic hotel search share increasing 7% in the US, 10% in Canada and 13% in Mexico. Rising travel costs, geopolitical uncertainty and visa restrictions are encouraging travellers to swap long-haul trips for domestic alternatives.
- The move away from long-haul travel is widespread. European Travel Commission data shows a year-on-year increase in travellers saying they have no intention of taking a long-haul trip, while more Europeans are planning to stay within the continent for their next holiday.
- Travellers are also becoming more budget conscious. The proportion of European travellers expecting to spend more than €1,500 on a trip has dropped significantly, while shorter stays and shorter booking windows continue to gain momentum.
- For marketers and hotel operators, the takeaway is clear: demand is shifting towards domestic and regional audiences. Success will depend on targeting nearby travellers, adapting offers for shorter and lower-spend trips, and using forward-looking search data rather than relying on last year's booking patterns.
- Read more
No results found.
