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
The top 10 domains cited in AI for travel questions
- Profound's latest research shows which website the major AI Models visit to answer travel related queries (4M Citations across ChatGPT, Google Gemini, Google AI Mode, Google AI Overviews, Perplexity, MSFT Copilot, Grok, and Meta AI).
- The top 10 domains cited for travel questions, are: Reddit, Forbes, Trip Advisor, Wikipedia, Google, Kayak, Airbnb, upgradedpoints.com, travelandleisure.com, and Quora, respectively.
- Reddit saw more than double the percent share of the next cited domain, with 4.9% of the 4 million question citations used in the study.
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AI in travel
Gemini now embeds paid hotel listings directly in AI search
- Google's Gemini search now embeds paid hotel listings directly into AI-generated travel itineraries, giving hotels prime visibility during high-intent planning stages.
- This move shifts paid media from traditional search result margins into the core AI journey, opening earlier touchpoints in a traveller's decision-making process.
- Listings feature visuals, prices, and reviews, so marketers should prioritise visual-first content and rich media to maximise engagement.
- Success hinges on dynamic feed targeting and active optimisation, including keeping feeds fresh, competitive, and aligned with Google's evolving AI triggers.
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AI in travel
Travellers now trust AI assistants more than travel bloggers and influencers
- Booking.com has released The Global AI Sentiment Report, to see how people are responding to AI in travel.
- 89% of consumers want to use AI in future travel planning, with AI assistants (24%) now considered a more trusted source than travel bloggers (19%) or social media influencers (14%).
- 91% of global respondents say they are excited about AI and 79% are familiar with the technology, though levels vary across regions.
- The Asia Pacific (APAC) region shows the highest willingness to integrate AI into daily life-41% use AI for education as well as transport.
- When planning a trip, travellers most often use AI to research destinations and the best time to visit (38%), find local experiences or cultural activities (37%), and get restaurant recommendations (36%).
- “Generative AI represents one of the most significant technological shifts of our era, fundamentally reshaping how consumers engage with the world around them. As this technology matures, it’s not only transforming how companies like ours anticipate and meet evolving customer needs, it’s also raising the bar for what travelers expect from every interaction,” says James Waters, Chief Business Officer at Booking.com.
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AI in travel
Non-US travellers more likely to use AI for trip planning
- Young travellers under 35 are driving AI uptake in travel planning: 40% have used AI tools to plan trips, compared to just 20% in the 55+ age group.
- Popular AI use cases include itinerary planning (75%) and general research (71%), with lodging, visa info and safety advice also seeing notable application among younger users.
- Non-US respondents were 40% more likely to use AI tools than US respondents (30% vs. 21%).
- “AI is transforming how travellers research and prepare for trips, and the next generation of globetrotters is embracing it fully,” said Dan Richards, CEO of The Global Rescue Companies and a member of the US Travel and Tourism Advisory Board at the US Department of Commerce.
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AI in digital
AI in travel
Platforms
Google’s ‘Web Guide’ in Search Labs
- Google's rolling out 'Web Guide' in Search Labs, an AI experiment that smartly organises search results to help users discover web content more easily.
- It uses a custom version of Gemini AI to interpret both queries and webpages more deeply, grouping results by themes or subtopics.
- The tool enhances search with ‘query fan-out’, firing off multiple related queries simultaneously to surface the most relevant info.
- Ideal for open-ended or complex queries, like travel planning or cross-time-zone family communication tools.
- Initially available via the Web tab for opted-in users, with plans to expand to other Search areas based on performance and feedback.
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Travel by numbers
International tourists to Malaysia up 20% YoY
- Malaysia welcomed 16.9 million international tourists from January to May 2025, up 20% year‑on‑year.
- Nearly half of those arrivals (≈ 8.34 million) came from Singapore, followed by Indonesia (1.82 M), China (1.81 M) and Thailand (1.06 M).
- Long‑haul markets also rose: Australia (+16.6%) and the UK (+8.7%), showing broader appeal beyond regional neighbours.
- The growth surge was attributed to government strategies like the Visa Liberalisation Plan, digital marketing and airline partnerships, plus targeted industry incentives.
- Malaysia is gearing up for Visit Malaysia 2026, with a bold target of 47 million international arrivals, building on early‑2025’s momentum.
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Platforms in travel
Updated Google Keyword Planner good news for travel marketers
- Here’s a quick breakdown on Google’s updated Keyword Planner:
- Added city, region, DMA and device-level forecast breakdowns, making it easier to see search volume across locations and platforms.
- Useful for multi-location or geo-targeted campaigns, allowing more precise budgeting and tailored targeting strategies for travel marketers.
- Continued support for grouped keyword ideas, helping streamline keyword discovery alongside these new views.
- Screenshots suggest a staged or quiet rollout since early July, possibly limited to select accounts.
- This upgrade gives PPC and local marketers sharper insights into where and how searches are happening, helping you allocate budget smarter and optimise performance at a granular level.
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Travel by numbers
Insights from World Economic Forum’s Travel & Tourism report
- Global tourism is projected to reach 30 billion trips and contribute US $16 trillion to GDP by 2034—over 11 % of the world economy—growing 1.5× faster than the global economy.
- Asia is the fastest‑growing region, with direct travel GDP in the region expected to exceed 7 % by 2034; India and China will make up 25 % of outbound trips by 2030.
- Booming travel segments include sports tourism (forecast at US $1.7 trillion by 2032) and ecotourism (growing at 14 % CAGR); travel tech (US $10.5 billion in 2024) is set to nearly double by 2033.
- Meeting demand will require ~7 million new hotel rooms, ~15 million more flights annually, and infrastructure to support the 30 billion trips.
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Travel by numbers
Japan travel breaks records in first half of 2025
- Japan welcomed a record 21.5 million international tourists in the first half of 2025—a 21% increase year-on-year—marking the fastest growth ever.
- June alone saw 3.38 million visitors, up 7.6% from the same month last year, driven by school holidays and pent-up travel demand.
- Growth was broad-based: South Korea led with ~4.8 million arrivals, China surged +53.5% to 4.7 million, followed by Taiwan (+10%), the US (+27%), Singapore, India and Germany also seeing strong rises.
- Tourist spending hit a record ¥4.8 trillion (~US $32 billion) in H1—nearly matching all of 2019—and contributed significantly to Japan’s GDP.
- Japan aims for 60 million annual tourists and ¥15 trillion spending by 2030, and is using new roles and initiatives to spread visitors more evenly to prevent overtourism hotspots like Kyoto.
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Travel by numbers
Perth hotel occupancy the best in 10 years
- Perth’s hotel scene just hit a new high for June, smashing records for both average daily rate (ADR) and revenue per available room (RevPAR), according to early figures from CoStar. Key metrics were all up compared to last year.
- Occupancy for June 2025 hit 77.7% – that’s an 8.6% lift year-on-year. ADR jumped 11.8% to $232.56, and RevPAR surged 21.4% to $180.64. It’s the best June result since 2015.
- All up, occupancy stayed above 70% for most of June, dipping below that mark on just four days.
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AI in travel
Study: The Signals Behind Hotel AI Recommendations
- Cloudbeds has released a study offering the hospitality industry a look at how generative AI platforms like ChatGPT, Perplexity, and Gemini recommend hotels to travellers.
- OTAs are Crucial: Over 55% of AI-sourced hotel recommendations come from Online Travel Agencies (OTAs), with Tripadvisor, Booking.com, and Expedia leading the pack.
- Brand Advantage: Branded or large group hotels make up 72.4% of AI-recommended properties, enjoying a 4.43 percentage point higher visibility than independents.
- Reputation Matters: Top-ranked hotels consistently have excellent guest ratings and high review volumes, averaging a sentiment score of 75 out of 100.
- Digital Presence is Key: A strong online footprint is vital—98% of recommended properties appear on YouTube, 97% in travel blogs, and 95% on Reddit.
- Strategic Actions for Visibility: Hotels should focus on curating a strategic OTA portfolio, optimising their websites for accuracy and detail, managing their reputation across review platforms, expanding their digital footprint, and emphasizing unique brand storytelling.
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Platforms in travel
Major OTAs dominate visibility in both paid and organic search
- Booking.com and Expedia continue to dominate both paid and organic search visibility, with Booking.com leading overall and consistently bidding for hotel placements.
- Smaller OTAs are leveraging aggressive pricing strategies to compete with the visibility of larger players, focusing on competitive pricing to attract customers.
- Regional trends show varying strategies: In Asia, both Booking and Expedia face higher loss rates, reflecting a competitive pricing environment; in Australia, Booking leads in visibility with moderate pricing tactics, while Expedia remains competitive despite lower visibility.
- The report underscores the importance for hotels, especially independents, to adapt strategically, highlighting the need to understand market rules and invest in direct sales channels to improve visibility and profitability.
- Overall, the competitive landscape in the OTA market is marked by major players maintaining visibility dominance, while smaller OTAs leverage pricing strategies and local strengths to compete.
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Travel by numbers
Aussie travellers most influenced by the holidays friends & family share on socials
- Insights from a new study from the Tourism & Transport Forum (TTF).
- Family & friends top the influence charts: Over 27% of Australians say their holiday plans are inspired by what their mates and loved ones share on social media—outpacing traditional influencers, who sway just 15%.
- Online reviews matter: 23% of travellers rely on online reviews to guide their holiday decisions, highlighting the value of authentic feedback over polished posts.
- Winter travel dips slightly: 68% of Aussies are planning a winter getaway, down from 71% in autumn and 75% last summer—suggesting cost-of-living pressures are influencing travel choices.
- Domestic travel dominates: 57% are staying local this winter, with NSW (28%), QLD (26%), and VIC (21%) leading the pack.
- Snow trips are trending: 22% are heading to the snow, with Jindabyne and Thredbo seeing significant search increases on Booking.com.
- “This winter, we’re seeing that family and friends are the true influencers of travel,” TTF CEO Margy Osmond said. “Aussies are appreciating real holiday recaps that showcase the good, the bad, and the ugly; A side that isn’t always shown through curated snapshots of traditional influencer posts. Online review platforms are also playing a major role in shaping travel decisions, with people relying on honest feedback to plan their getaways with confidence.”
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Travel by numbers
APAC leads global air travel demand
- Asia-Pacific leads the charge: International passenger traffic in the Asia-Pacific region surged by 13.3% year-on-year in May 2025, significantly outpacing other regions and driving global growth.
- Global demand remains strong: Overall, global air travel demand increased by 5% compared to May 2024, with international routes growing by 6.7%.
- North America lags behind: In contrast, North America experienced a modest 1.4% growth, hindered by a 1.7% decline in U.S. domestic travel due to economic challenges and reduced government activity.
- Record load factors achieved: International flights reached a record May load factor of 83.2%, indicating high seat occupancy and efficient capacity utilisation.
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Travel by numbers
Insights from Adventure Travel Trade Association (ATTA)’s “Adventure Travel Trends & Insights” report
- Revenue up, traveller numbers down: While the average number of travellers per operator dropped 37% from 2023, 73% of businesses reported revenue growth, and 66% expect higher profits in 2025—signalling a shift toward higher-value, more personalised experiences.
- Culinary adventures take the lead: Food-focused travel has overtaken safaris and hiking as the top adventure trend, reflecting growing demand for immersive, culturally rich itineraries.
- Custom, soft, and solo travel on the rise: Tailored itineraries, soft adventure (think e-biking or walking tours), and women-focused or solo trips are gaining traction—offering opportunities for niche marketing and product development.
- Market recalibration, not retreat: The post-pandemic boom has stabilised, but demand remains strong. The industry is focusing on long-term resilience, community impact, and meaningful experiences over volume.
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Travel by numbers
Majority of hotels find it difficult to track travel intent & demand
- Key takeaways from the State of Distribution 2025 report, released by NYU SPS, RateGain, and HEDNA:
- Large international hotel chains: 73% of hotels find it difficult to market to corporate travellers, 82% of hotels find it hard managing multiple vendors and having disparate data across sources, and 73% of hotels want to reduce efforts in tracking travel intent.
- Mid-sized regional hotel chains: The number 1 factor impacting the hotel technology decision is Data Governance & Residency, 89% find it hard managing multiple vendors and having disparate data across sources, while 79% find it hard tracking travel intent & demand.
- Independent hotel properties: 81% of hotels find it hard tracking travel intent & demand, and 67% find it hard managing multiple vendors and having disparate data across sources.
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AI in travel
Brett Keller, CEO of Priceline talks AI and travel planning
- “After 25+ years in travel, I see AI as the third seismic shift in how the industry operates.”
- ”After collectively using the same utilities and booking funnel for 20+ years, AI has the potential to significantly disrupt how a customer moves through the travel planning and booking experience. In addition to making it easier and faster to book a sophisticated, bespoke trip, it could also alleviate pain points and optimize customer service in ways not previously possible.”
- ”We’re testing voice technology and are closely observing usage patterns to see how consumers will actually adopt this medium to plan, book and service travel. We’re also watching consumer traffic flows for potential shifts from traditional search engines to LLMs and agentic platforms. This could transform consumer discovery as well as SEM and performance marketing strategies. One other trend I have my eye on is the rise of AI agents and their potential to actually plan and book travel on behalf of users. The speed and personalization of this technology will be a game-changer in how both consumers and brands approach travel.”
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AI in travel
Travel by numbers
How India is travelling in 2025: AI & mobile insights
- AI-powered personalisation is now the norm: Travel platforms are leveraging AI and data analytics to craft tailored itineraries based on users’ browsing habits, budgets, and even social media activity, enhancing satisfaction and boosting bookings.
- Mobile bookings dominate: Over 75% of travel bookings are made via mobile devices, especially in Tier 1 and Tier 2 cities, thanks to user-friendly apps, competitive pricing, and seamless digital payment options.
- Value-conscious travellers seek more than just discounts: Modern Indian travellers prioritise flexibility, comfort, and perks like free cancellations, cashback, and loyalty rewards over mere cost savings, leading to a rise in off-season travel and longer booking lead times.
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Travel by numbers
PATA releases update to Asia Pacific Visitor Forecasts report
- Visitor Growth Forecast: International visitor arrivals to Asia Pacific are projected to reach 801 million by 2027, up from 692 million in 2025, under PATA’s medium scenario.
- Top Inbound Markets: China is set to remain the leading inbound destination with a forecast of 148 million visitors by 2027, followed by the USA and Türkiye. Notably, Türkiye and Mongolia are expected to surpass pre-pandemic levels.
- Diversifying Source Markets: While China continues to lead outbound travel, emerging markets like India, the UK, and Russia are gaining significance, indicating a shift in regional travel demand.
- Influence of Policy and Currency: Factors such as extended Chinese public holidays, currency fluctuations, and tariff conflicts are reshaping outbound travel patterns and opening new regional travel corridors.
- Emerging Travel Trends: There's a growing interest in wellness and preventative health travel, especially among aging populations. Additionally, social media and user-generated content are increasingly influencing younger travellers seeking authentic and shareable experiences.
- “This mid-year update goes beyond forecasting – it’s a strategic guidance for tourism leaders across the region,” said PATA CEO Noor Ahmad Hamid. “As the industry grapples with unpredictable forces from geopolitics to global inflation, staying informed through timely, evidence-based insights is more important than ever.”
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Travel by numbers
Leisure travel is booming according to BCG’s latest report
- BCG’s latest report, The $15 Trillion Opportunity in Leisure Travel, highlights a massive growth trajectory for the global leisure travel sector by 2040.
- Leisure travel spend is set to triple from $5 trillion in 2024 to $15 trillion by 2040, with domestic travel leading the charge—expected to hit nearly $12 trillion.
- Emerging markets are the new growth engines: China, India, Saudi Arabia, and Vietnam are driving the surge, outpacing traditional tourism heavyweights like the US, UK, and Germany.
- Younger, digital-savvy travellers are reshaping the market: Millennials and Gen Z are planning more trips, spending more, and increasingly using AI tools for travel planning—especially in Asia.
- Travel motivations are shifting: While beaches and cities remain popular, there's a growing demand for cultural experiences, wellness retreats, and food tourism.
- "Bleisure" travel is booming: In markets like China and India, over 70% of travellers plan to combine business and leisure trips, compared to just 15–30% in Western countries.
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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.
- Contact us if you'd like to learn more
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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