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.
AI in travel
Travel by numbers
Global AI in Tourism Market projected to grow to over $13 Billion by 2030
- The global AI in Tourism Market is projected to expand from USD 2.95 billion in 2024 to USD 13.38 billion by 2030, reflecting a robust CAGR (compound annual growth rate) of 28.7%.
- Key industry players driving this growth include Snowflake, IBM, NVIDIA, Microsoft, AWS, Salesforce, Huawei, Appier, Sabre Corporation, and SAS Institute.
- The surge in AI adoption is largely due to the increasing demand for data automation tools that streamline decision-making processes and the need for highly personalised services to enhance customer experiences.
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AI in travel
Data privacy in travel
Insights from HSMAI Europe’s AI in Hospitality Think Tank
- Hospitality leaders recently convened at HSMAI Europe's 'AI in Hospitality' Think Tank to assess AI's transformative potential in the industry. Key takeaways include:
- Enhanced Guest Experience: AI enables personalised website content and imagery, improving user engagement and satisfaction.
- Marketing Advancements: AI facilitates self-optimising campaigns and faster content distribution, leading to more effective marketing strategies.
- Operational Efficiency: Automating routine tasks with AI allows staff to focus on strategic activities, boosting overall productivity.
- Challenges Identified: Concerns were raised about data privacy, security, and the ethical use of AI, especially for smaller hotel chains facing investment hurdles.
- Future Outlook: Educating staff and stakeholders about AI's benefits, while supporting regulatory efforts for ethical data use, is crucial for successful integration.
- In summary, AI holds significant promise for enhancing guest experiences and operational efficiency in hospitality, provided that challenges are proactively addressed.
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AI in travel
Platforms in travel
Tripadvisor and Perplexity partner together
- Tripadvisor has teamed up with AI platform Perplexity to enhance travel planning with personalised, AI-driven insights and recommendations, integrating one billion reviews and 300,000+ experiences.
- The collaboration merges Tripadvisor’s vast travel data with Perplexity’s advanced search capabilities to deliver fast, customised answers, catering to travellers' needs for intuitive planning tools.
- Tripadvisor’s 43-market presence and 22-language support, combined with Perplexity’s real-time insights, promise streamlined trip planning for a global audience.
- The features are live on Perplexity.com, with continuous improvements planned over three years.The features are live on Perplexity.com, with continuous improvements planned over three years.
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Travel by numbers
APAC tops list of buy-now-plan-later travel destinations
- APAC destinations are at the top of the list when it comes to buy-now-plan-later (BNPL) travel.
- The top BNPL order destinations in 2024 included Malaysia, Singapore, Thailand, Japan, South Korea, the Maldives, New Zealand, Australia, the United States, and Indonesia.
- Emerging destinations like Iceland, Norway, Kenya, the United Kingdom, and New Zealand have also grown rapidly.
- The BNPL travel booking model, primarily driven by Gen Z, grew by over 20% in 2024, making it a mainstream method of travel consumption.The BNPL travel booking model, primarily driven by Gen Z, grew by over 20% in 2024, making it a mainstream method of travel consumption.
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AI in travel
Platforms in travel
AI and social travel trends predicted for 2030
- KAYAK, with The Future Laboratory, forecasts 2030 travel trends, highlighting AI travel agents, multi-destination trips, and wellness-focused holidays.
- AI tools are predicted to handle trip planning, offering tailored recommendations, cost savings, and efficiency for travellers.
- City jumping is set to grow, with relaxed visa regulations encouraging more complex itineraries.
- Social media will evolve into a booking platform, transforming from inspiration to a practical tool for planning.
- Travel will prioritise sustainability, personal growth, and wellness, reflecting a shift away from overtourism and carbon-heavy options.
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AI in travel
Travel by numbers
Screaming Frog’s Travel Industry 2024 report insights
- Screaming Frog have just published their Travel Industry 2024 Report. Guess what 50% of the top 10 travel brands on the list have in common? You guessed it: In Marketing We Trust.
- Travel Confidence Rebounds: Confidence in travel saw a notable rise, with 21% of respondents in an ABTA survey expressing high confidence in travelling, up from 15% in 2023.
- Record-Breaking Flights: Over 282,775 flights departed from UK airports in Q3 2024, setting a new record with 51.24 million seats.
- Organic Search Dominates: Organic traffic accounted for a significant portion of visits to major travel websites, with some brands seeing over 73% of their traffic coming from search engines.
- Visibility Shifts: Airlines saw a remarkable 66% increase in search visibility, while review sites experienced a 38% decline due to algorithm updates prioritising first-hand experience.
- Emerging AI Trends: AI travel tools, like Booking.com’s smart filters and Expedia’s ChatGPT-powered planner, gained traction but faced mixed reception regarding SEO and user experience.
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Travel by numbers
Almost half of Australian’s top financial priority for 2025 is travel
- Nearly half of Australians (49%) have made saving for travel their top financial priority for 2025 according to Money.com.au, surpassing goals like building an emergency fund (44%) and saving for retirement (32%).
- Baby Boomers lead this trend, with 54% prioritising travel savings, followed by Gen Z (52%), Millennials (48%), and Gen X (47%).
- Western Australians (54%) and Queenslanders (53%) are the most focused on saving for travel, while South Australians (47%) and New South Wales residents (46%) are slightly less inclined.
- Despite an 8% increase in holiday travel and accommodation costs over the past year, Australia's tourism GDP grew by 9.1% in the 2023/24 financial year, indicating robust spending in the sector.
- A third of Australians are willing to save for up to a year to fund their trips, highlighting the significant value placed on travel experiences.
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Platforms in travel
Travel by numbers
106% increase in domestic trips for Jan and Feb according to Webjet
- Aussies are making the most of summer with a surge in last-minute domestic travel bookings. In the week following Boxing Day, Webjet reported a 106% increase in domestic trips planned for January and February, with 87% of these bookings set for January.
- The top destinations for these spontaneous getaways are: 1. Melbourne (19%) 2. Sydney (16%) 3. Brisbane (14%) 4. Gold Coast (10%) 5. Perth (8%) 6. Adelaide (6%) 7. Hobart (5%) 8. Cairns (4%) 9. Maroochydore (3%) 10. Launceston (2%)
- International travel is also on the rise, with a 31% increase in bookings. Bali and Tokyo are leading the pack, together accounting for one in every three international flights booked for the year ahead.
- Katrina Barry, CEO of Webjet Group, noted that travel now represents the highest percentage of gross disposable income in history, highlighting Australians' enduring passion for exploration.
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Platforms in travel
Travel by numbers
60% of Aussie’s travelling to boost morale this year, according to Skyscanner
- According to recent research by Skyscanner, 60% of Australians are turning to travel to boost their morale this year.
- Despite the positive impact on well-being, many Aussies find travel planning stressful, with 39% feeling overwhelmed and 34% admitting that overthinking sometimes prevents them from booking a holiday.
- Cost remains a significant barrier, as 53% of Australians cite expenses as a major hurdle to booking a trip.
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Travel by numbers
Below average conversion rates for travel landing pages
- Landing page conversion rates for the travel and tourism industry are below average according to new research by Unbounce.
- Travel and hospitality conversion rates were at 4.8% below the all industries median of 6.6%.
- Unbounce gave the tip to not place all your bets on one search engine: “If you can believe it, Yahoo’s median CVR is 49.2% higher than Google’s. Still, both Google and Bing have great performance potential.”
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Platforms
Travel by numbers
Tripadvisor unveils 2025 Travelers’ Choice Awards
- Tripadvisor has unveiled its 2025 Travelers' Choice Awards, highlighting the top destinations globally, based on millions of traveller reviews. Key insights include:
- London has clinched the top spot as the world's leading destination, celebrated for its rich history, vibrant arts scene, and exceptional culinary offerings.
- In the United States, New York City leads as the premier destination, renowned for its iconic landmarks, diverse cultural experiences, and dynamic dining scene.
- Osaka, Japan, has emerged as the top Trending Destination, attracting travellers with its renowned food culture, shopping districts, and lively nightlife.
- For those seeking romantic getaways, Mauritius is recognised as the leading Honeymoon Destination, offering pristine beaches and luxurious resorts.
- Seoul, South Korea, is highlighted as the top Solo Travel Destination, praised for its safety, public transport, and vibrant urban experiences.
- These rankings are determined by the quality and quantity of reviews for accommodations, restaurants, and attractions, reflecting genuine traveller experiences over the past year.
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AI in travel
United Airlines use of generative AI has increased customer satisfaction 6%
- United Airlines is leveraging generative AI to enhance customer communication and operational efficiency.
- Enhanced Flight Updates: The "Every Flight Has a Story" system uses AI to provide passengers with detailed, real-time updates on flight delays and disruptions, leading to a 6% increase in customer satisfaction.
- Operational Efficiency: The AI platform, "Mars," integrates data from various sources to streamline processes, allowing staff to focus on complex operational challenges.
- Future Applications: United plans to expand AI use to areas like baggage handling, flight route optimisation, and predictive aircraft maintenance, aiming to further improve the travel experience.
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Travel by numbers
JLL’s Hotel Operators’ Sentiment Survey shows APAC on the mend
- The Asia Pacific hotel industry is on the mend, though recovery varies across regions, according to JLL's Hotel Operators’ Sentiment Survey (HOSS) 2024/2025.
- Diverse Recovery Rates: International tourist arrivals are still 15% below pre-pandemic levels as of September 2024, with domestic travel showing stronger recovery. Regions like South Asia, the Maldives, Southeast Asia, and North Asia are outperforming, while Australasia and Greater China are experiencing slower growth.
- Talent Shortages: The industry is facing significant challenges in recruiting and retaining staff, particularly in guest-facing roles, due to high turnover and competition from other sectors offering higher salaries. Staff costs are expected to rise in 2025, reflecting increased headcount and inflation.
- F&B Performance: Food and Beverage revenues are projected to remain below pre-pandemic levels for most hotels, despite the region's strong dining reputation. However, year-over-year improvements in F&B revenue and profit are anticipated across all subregions in 2025.
- MICE Sector Rebound: The Meetings, Incentives, Conferences, and Exhibitions sector is poised for a strong comeback, driven by demand for innovative and engaging experiences, contributing to a generally optimistic outlook for 2025.
- Overall, while challenges persist, the Asia Pacific hotel industry is optimistic about continued recovery and growth in 2025.
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AI in travel
Data privacy in travel
Travel by numbers
Phocuswright analysts share travel predictions for 2025
- Phocuswright Analysts have shared some travel predictions for 2025.
- Coney Dongre, research manager: “The hotel sector in Asia Pacific is set to become more organized as the region’s fast-growing economies and travel markets attract global hotel brands looking to expand their presence. Even in the budget segment, local players are making efforts to standardize offerings and improve service quality by consolidating supply. This trend will particularly accelerate in markets with strong domestic tourism demand, such as India, China and South Korea.”
- Cathy Walsh, senior research analyst: “Expect to see accelerated developments in agentic AI. As foundational models and multimodal capabilities continue to improve, there will be expanding opportunities for travel companies to leverage the power of autonomous agents.”
- Mike Coletta, senior manager, research and innovation: “In 2024, 39% of active travelers used generative AI in some capacity, up from 22% in 2023. At this pace, usage will likely crack 50% in 2025.”
- Robert Cole, senior research analyst, lodging and leisure travel: “The hospitality industry will realize digital identity, privacy and security for both consumers and properties will need to be addressed to satisfy traveler and regulatory expectations. The European Union Digital Identity Wallet initiative, launching in 2026, includes a travel use case enabling citizens of its 27 member states to use their digital identity wallet when booking or checking into EU hotels. Hotel owners, managers, brands and technology vendors will have considerable work to prepare for travelers expecting a seamless hotel booking/stay/payment experience comparable with an Uber ride.”
- Bing Liu, director, surveys and analytics: “Demand for domestic travel is expected to grow in 2025, driven by rising economic concerns such as inflation and increasing international travel costs. Travelers are prioritizing destinations within their own countries, focusing on affordable and accessible options while exploring nearby or less-frequented locations. Shorter trips, including weekend getaways and staycations, are becoming increasingly popular as people seek unique experiences that avoid the higher costs associated with international travel.”
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Travel by numbers
International travel to Aus still well below pre-covid numbers
- International visitor numbers to Australia remain 21% below pre-COVID levels, translating to a $4.7 billion shortfall in tourism spending and affecting approximately 30,700 jobs.
- The Australian Tourism Industry Council (ATIC) highlights that regional tourism businesses are particularly hard-hit by this downturn.
- ATIC Chair Evan Hall criticises the Federal Government for underinvesting in international tourism marketing, noting that funding has declined in real terms.
- Hall urges the government to inject an additional $30 million into tourism marketing efforts to attract international visitors back to Australia.
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Travel by numbers
Travel experiences take centre stage in Afterpaid report
- According to Afterpay’s Australian Afterpaid 2024 report, Aussie’s are using Afterpay for travel experiences.
- The Gold Coast continues to be the epicentre of travel experiences,with Warner Bros. Movie World tickets attracting the most Afterpay customers.
- Hotels were another big buy for Aussie’s in 2024 with 192,000 hotel bookings purchased with Afterpay.
- Afterpay trends expert Amanda Shannahan-Moore said, “This year’s Afterpaid 2024 data not only highlights a nostalgic journey but also shows how Australians are prioritising experiences and comfort, reflecting a unique blend of past and present in their purchasing decisions. iconic throwbacks like press-on nails and Crocs made a major comeback, while Aussies also splurged on real-life moments, experiences tickets dominating Afterpay’s top purchases of the year.”
- Contact us if you'd like to view the report
Travel by numbers
Australian travellers favouring APAC destinations
- Australians are travelling overseas in record numbers, with Japan, Vietnam, and Indonesia emerging as top destinations. Key insights include:
- Japan's Popularity Soars: In the year leading up to October 2024, 567,330 Australians visited Japan, marking a 73.8% increase from the previous year.
- Vietnam's Growing Appeal: Vietnam attracted 423,630 Australian travellers, a 35.4% rise year-on-year, highlighting its increasing allure.
- Indonesia Remains a Favourite: With 1,644,010 Australian visitors, Indonesia (including Bali) saw a 26% increase, maintaining its status as a top choice for Aussies.
- Destinations like Japan and Vietnam are experiencing unprecedented growth, reflecting evolving preferences among Australian travellers.
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Travel by numbers
Hilton embraces growing APAC travel needs
- Hilton has reached a significant milestone by operating 1,000 hotels across the Asia Pacific region, surpassing its initial goal set for 2025.
- This achievement reflects a 25% compound annual growth rate over the past five years, driven by increasing demand from the region's expanding middle class.
- With a development pipeline of 915 hotels, Hilton plans to double its current portfolio in the coming years, focusing on mid-market to luxury offerings.
- In Greater China, Hilton operates 758 hotels across 10 brands in 249 locations, including over 400 Hampton by Hilton hotels ann Garden Inn properties.
- The company is also expanding in India and Southeast Asia, with recent openings such as DoubleTree by Hilton Bengaluru Whitefield, Hilton Gurugram Baani City Center, and DoubleTree by Hilton Vientiane in Laos.
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Travel by numbers
Global tourism to fully recover from the pandemic this year
- The global tourism industry is on track to fully recover from the COVID-19 pandemic by the end of 2024, with approximately 1.1 billion international tourists in the first three quarters, representing a 98% recovery compared to pre-pandemic figures.
- Most regions, including the Middle East, Europe, and Africa, have exceeded their 2019 arrival numbers between January and September 2024, while the Americas and Asia-Pacific are steadily approaching pre-pandemic levels.
- As of July 2024, the APAC region was down 18% on pre-covid levels of international tourist arrivals.
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Travel by numbers
Both tech and human interaction crucial for travel
- A recent study by Amadeus highlights that both technology and human interaction are crucial in enhancing the travel experience. Key findings include:
- Top Traveller Concerns: Delays and cancellations distress 68% of U.S. travellers, while 50% are concerned about overall travel costs.
- Technology as a Solution: A significant 89% of respondents find mobile apps helpful for trip planning, and 86% appreciate features like automatic rebooking and digital bag tracking.
- Human Interaction Preferences: Leisure travellers prefer human assistance during airport security a, with 44% and 43% favouring personal interaction in these areas, respectively.
- Generational Differences: Nearly half (49%) of Gen Z travellers find scheduling and route planning stressful, compared to 35% of travellers aged 65 and above.
- Contact us if you'd like to view the report
Travel by numbers
18 million Aussie’s visited a travel website or app in October
- According to Iris Ipsos data, 18 million Australia’s visited a travel website or app in October 2024.
- 51 minutes per person on average was spent on online travel content, with airline websites or apps up 6% YoY, automotive transportation up 11%, hotels and home sharing up 12%, cruise travel up 30%, and tourist information up 19% YoY.
- Contact us if you'd like to view these charts
AI in travel
Platforms in travel
Booking CEO predicts AI trip planners will be better than human travel agents
- Booking Holdings CEO Glenn Fogel predicts AI trip planners will soon outperform human travel agents in customising itineraries and offering proactive suggestions.
- Booking.com's AI-powered trip planner, launched in 2023, reduces reliance on customer service calls by quickly filtering and responding to user queries.
- The AI also adapts plans dynamically, e.g., adjusting itineraries based on weather conditions for optimal experiences.
- Booking Holdings integrates Salesforce's AI to streamline customer service, hinting at a future of seamless, human-like AI interactions in hospitality.
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Platforms in travel
Travel by numbers
Google predicts rise of luxury travel in 2025
- Google forecasts a significant rise in demand for luxury travel by 2025, with preferences for spas, Michelin-starred dining, and five-star accommodations.
- Holiday spending in Europe is projected to grow by 37% by 2027, with in-resort global spending also rising by 22%.
- Travellers are prioritising high-quality experiences over bargain hunting, blending value with luxury.
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Travel by numbers
Indian travellers are shaping global hotel trends
- According to SiteMinder’s Changing Traveller Report 2025, Indian travellers are shaping global hotel trends, prioritising seamless digital booking experiences, with 65% abandoning bookings due to issues like slow websites and poor security.
- They're shifting from standard rooms, favouring eco-friendly options (92%) and package deals (79%), with strong interest in onsite workspaces and experiential activities like yoga (44%).
- Social media (12%) and online forums (19%) are becoming primary hotel discovery tools, overtaking traditional word-of-mouth.
- Hotels face increasing pressure to adjust pricing dynamically, as Indian travellers overwhelmingly (84%) support event-driven pricing flexibility.
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Data privacy
Data privacy in travel
Platforms
Platforms in travel
Google going back to blue links for hotel searches in EU
- To comply with the EU's Digital Markets Act (DMA), Google is trialling a "blue link" format for hotel searches in Belgium, Estonia, and Germany, mimicking its earlier search styles.
- Google reports that DMA-driven changes have reduced direct clicks to airlines, hotels, and small businesses by approximately 30%, causing tension with travel aggregators.
- The changes will enable clearer formatting in search results, offering equal visibility for comparison sites, direct suppliers, and other competitors in various verticals, including travel and retail.
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Travel by numbers
75% of Aussies plan to travel this summer
- 75% of Australians plan to travel during the summer, with early January being the most popular time despite rising living costs.
- Most people are opting for 2–7 day getaways, while only 13% are planning longer breaks of over two weeks.
- Half of travellers aged 65+ aim to spend under $2,000, while others plan budgets ranging between $2,000 and $10,000.
- 62% are booking holidays less than a month in advance, with younger travellers showing the most spontaneity.
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AI in travel
Travel by numbers
Amadeus highlights key trends for 2025
- Amadeus highlights nostalgia, personalisation, iconic destinations, a booming Asian tourism market, and fostering real-life connections as pivotal for shaping future travel experiences its 2025 predictions.
- Emerging technologies like AI, 5G, and AR are driving personalised and immersive travel experiences, particularly for air passengers.
- There’s a growing trend of trips centred on unique accommodations and iconic properties, like "Trailblazer Hotels."
- The Asian market is poised for significant growth, re-establishing itself as a powerhouse in global tourism.
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AI in travel
UN Tourism launches global AI challenge
- UN Tourism launched a worldwide AI competition to foster innovative solutions in the tourism sector, focusing on sustainability, digital transformation, and operational efficiency.
- AI is projected to contribute up to $19.9 trillion to the global economy by 2030, underscoring its transformative potential in tourism.
- The challenge is backed by major partners, offering winners access to resources, mentorship, and international exposure at key events.
- Applications are invited from individuals, teams, and companies globally until March 2025, with winners receiving incubation support and networking opportunities.
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AI in digital
AI in travel
Marketing by numbers
Platforms
Platforms in travel
Travel by numbers
Google AI Overviews appear for 30% of travel-related queries
- Google's AI Overviews now appear in 30% of travel-related searches, marking a 700% increase from September to October.
- This surge is particularly notable for queries about seasonal travel, local events, and neighbourhood-specific activities.
- YouTube citations within AI Overviews have stabilised after a previous spike, indicating the platform's ongoing importance in travel content.
- Overall volatility of AI Overviews decreased by 42% compared to September, suggesting a more consistent user experience.
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Platforms in travel
Travel by numbers
Rise of retail media network ads success fuelling growth for TMNs
- According to a new report by LiveRamp and EMarketer, the success of RMNs is fuelling growth for travel media networks.
- Travel and entertainment make up 30% of non-endemic advertisers in the US.
- RMN ad spend in the US is forecast to exceed $54 billion in 2024 and will grow by more than double by 2028. The rapid trajectory of RMN ad spending has attracted the attention of nonretail verticals, including travel.
- “Travel Media Networks (TMNs) are betting that their ability to reach specific consumers will help them cut through the crowded commerce media network noise. Use cases include ride-hailing passengers who may be receptive to promotions with geographic relevance to their destination. Travelers planning higher-consideration trips who have specific interests during research, after booking, and during their trip are another target.”
- Please contact us if you'd like to view the report.
