Digital Transformation In The Travel Industry: Facts and Stats

Tips / 16.04.2025

The digital transformation in the travel industry is a fact that can’t be neglected by companies in this sector.

This gradual transformation is changing the way travellers plan, book, and experience their journeys. Powered by the integration of digital technologies and platforms in different parts of the travel and tourism sector, digital transformation enables travel organisations to stay ahead of others in a highly competitive and dynamically evolving landscape.

In the following sections, we share some of the most important trends that shape this transformation and offer interesting stats and facts.

TABLE OF CONTENTS

The role of digital platforms in travel

One of the first areas to examine is the role of digital platforms in travel.

Platforms like online travel agencies, metasearch engines, and social media platforms are growing in importance. Below, we explore why.

Online Travel Agencies (OTAs)

Undoubtedly, the travel and tourism industry’s digital transformation puts Online Travel Agencies (OTAs) at the heart of change.

These platforms provide opportunities for booking flight tickets, accommodation, renting cars, tours, and more. They streamline the entire tourism cycle and rely on advanced algorithms and data collection in order to be able to recommend personalised offers to travellers.

Here are some of the eye-opening findings that demonstrate the vast importance of OTAs today:

On a global basis, the Online Travel Agency market size was estimated at $269,509 million [1] in 2021, with expectations that this number will reach $391,394 by 2027.
According to research, around 41% of travellers prefer booking via online travel agencies [2].

However, there are plenty of other options that travel companies can explore.

Metasearch engines

At the same time, meta search engines like Kayak, Skyscanner, Google Flights, Pricerunner, and Indeed have become key players in the travel and tourism market.

They operate by collecting data from multiple tourism websites worldwide, offering travellers the opportunity to find out more about prices, hotels, and accommodation businesses and make comparisons.

This new trend has completely transformed how individuals search for and buy travel services, ultimately resulting in efficient decision-making.

Today, metasearch accounts for nearly 50% of global unique visitors in travel [3].

While the market was valued at $6,400 million in 2023, projections are that it will reach $31,720 million by 2030 [4].

Social media platforms

Without a doubt, social media marketing is taking centre stage in today’s digital business environment, and the travel sector isn’t excluded.Platforms like Facebook, TikTok, and Instagram are among the social media platforms that dominate in the travel space.

Tourist destinations actively rely on these channels to demonstrate their stunning attractions and showcase all the reasons why they must be visited. At the same time, travellers can’t wait to share their personal experiences, influencing perceptions and travel trends.

Naturally, travel companies nowadays concentrate on sharing visually compelling content on these platforms, attracting millions of visits from potential travellers.

The following statistics prove the importance of social media platforms for travel today:

89% of travellers rely on social media for travel inspiration [5].
48% of travellers have booked a trip based on a social media post [6].
30% of travel marketers find Facebook to be the most effective way to target new audiences [7].
80% of social media users follow travel influencers for recommendations [8].

Companies jumping on this bandwagon are guaranteed to attract more attention by different customer groups that use social media.

Mobile technology changing the travel game

Another part of the digital transformation in travel is mobile technology. This wave is influencing almost every part of everyday life, naturally leading to changes in different business sectors, travel included.

The popularity of mobile apps like Airbnb and Uber has reshaped the travel process. Booking flights, hotels, and navigating new cities is a completely new game today.

Not to mention that mobile apps also enable travellers to use instant messaging services and gain access to real-time updates, making the customer journey smoother and more connected than ever.

Worldwide, the revenue of travel apps is $1.25 billion [9].
Between 2021 and 2029, the global market for mobile travel bookings is forecasted to grow by 12.2% [10].
Around 70% of people use smartphone devices to research and book holidays [11].
More than 70% of bookings happen within two days of a Google search [12].

Mobile devices create unmissable opportunities for travel companies to directly engage with customers, offering deals, customised itineraries, notifications, and other components that enhance the guest experience and boost customer satisfaction.

Moreover, hotel mobile payments are easier than ever with options like Tap to Pay and virtual terminals.

Artificial Intelligence and Personalisation

The digital era is also driven by innovations in Artificial Intelligence, creating exciting personalisation opportunities and abilities to streamline processes.

More than 70% of travel leaders [13] think that AI will have a tremendous impact on the travel industry between 2024 and 2026.

At the same time, 71% of consumers expect businesses to deliver personalised interactions [14].

For example, tools like AI-powered chatbots, virtual assistants, and recommendation engines all rely on machine learning to analyse customer preferences and deliver customised offers. This can lead to dramatic improvements in customer experience and can help travel companies make more accurate predictions.

AI is also fundamental when it comes to operations, enabling travel businesses to set more adequate pricing, offer better service interactions, and more.

Today, nearly all tourism-related companies rely on at least one AI-powered solution. Expectations are that the value of this market will reach $1.2 billion by 2026 [15].

Here are some of the most popular AI-driven solutions and stats about their use and capabilities:

AI travel assistants – AI-powered chatbots have the capability to improve customer engagement by 40% [16].
Virtual assistants – Using AI can manage up to 70% of customer inquiries [17].
Advanced personalisation – Personalised recommendations created by AI can bring travel bookings up by around 35%. [18]
Face-to-face customer services with robots – One-third of all customer service interactions [19] around the world will be handled by AI by 2030.
AI-powered apps for flight forecasting – Nearly 60% of people are comfortable with AI helping them plan their trips [20].

As travel companies and travel agents incorporate AI into their business processes, they can provide more accurate and personalised services.

Big Data and IoT

Another two trends that are revolutionising the travel and tourism sectors are Big Data and the Internet of Things (IoT).

Big Data analytics in the tourism market is valued at $222,154 million in 2024, with expectations that it will maintain an annual growth rate of 8.20% until 2031 [21]. Travel companies utilise Big Data and IoT to forecast travel trends, customise marketing campaigns, and improve guest experiences.

One of the examples of how IoT can be implemented and used in the travel industry is smart luggage (a new trend in the industry that’s expected to have a significant market size, with a CAGR growth of 21.2% from 2023 to 2028) [22].

Hotel and accommodation businesses are also implementing IoT solutions to make guests’ stay more comfortable than ever.

For example, IoT-powered devices can include voice control of air conditioning and traveller luggage tags by airlines. Today, more than 60% of hotels are utilising in-room voice-controlled devices, while nearly 50% of travellers rely on voice assistants in hotel rooms for information [23].

Overall, these technologies can help streamline the traveller’s entire trip, bringing unimaginable benefits to both consumers and travel companies.

Cloud computing and streamlining operations

Another key enabler of the digital transformation journey in the global travel industry is cloud computing. Travel cloud innovation is at the heart of online sales in the travel industry, enabling travel companies to streamline operations and gain access to data from any place in the world.

This innovation brings improvements to things like real-time booking updates, online sales channels management, and collaboration between multiple players in travel.

Overall, cloud-based platforms can bring down IT infrastructure expenses by up to 50% [24]. They offer outstanding data storage and analytics capabilities, delivering operational efficiency and new business opportunities.

Digital payments

In 2023, 90% of consumers around the world used some form of digital payment [25].

Although this finding relates to all industries, the travel space is also included.

The rising popularity of digital wallets and contactless payments is vivid. These innovations in the payments industry now allow travellers to enjoy a safer and more convenient payment process.

Regardless of whether they’re buying flight tickets, booking hotels, or making car rentals, digital and online payments are now considered standard across the tourism market worldwide.

They not only make paying much faster and easier for travellers but also build confidence in online travel agencies and other service providers.

Virtual Reality and Augmented Reality

Another aspect of the digital transformation in travel is related to virtual reality and augmented reality.

These technologies are creating immersive experiences that enable travellers to explore destinations before they actually visit.

Globally, the virtual tourism market was worth $7.94 billion in 2023 [26] and is expected to reach $38.68 billion by 2029.

On the other hand, the augmented reality in travel and tourism market size was worth $15.52 billion in 2023 [27] and has grown to $21.44 billion in 2024. Forecasts show that it’s expected to continue growing at an annual rate of 38.1%.

Nearly 50% of travellers [28] admit that they would be more open to travelling to a destination if they could experience the location virtually first.

Virtual tours provided by tour operators are becoming popular across travel and tourism websites, offering 360-degree hotel, landmark, and tourist destination previews. Smart destinations like museums and historical sites are also growing in popularity.

Apart from the changes in experience, VR can also help improve conversion rates and turn users into actual clients. Studies show that AR and VR experiences can result in conversion rates that are 94% higher [29] compared to traditional solutions with no immersive virtual content.

Research also shows that 93% of travellers [30] state that they plan to use augmented reality at some point throughout their future journeys.

Cybersecurity

As digital interactions in travel expand and grow, so do the significant challenges related to data security. As the travel industry relies more on communication technology, protecting sensitive data becomes paramount.

Here are some striking stats linked to cybersecurity in travel:

Based on research, expectations are that spending on cybersecurity in the travel sector will reach $4.3 billion by 2027 [31].
More than 50% of travel companies fall victim to cyberattacks [32] have gone through a breach or attack in the past year.
37% of travel websites [33] are vulnerable to breaches.

These numbers prove the importance of putting in place reliable data security and cybersecurity systems to safeguard consumer data and protect both your business and your customers.

Sustainability

The push for a more sustainable industry footprint is a vital part of the digital transformation journey in travel. Innovations like digital tourism initiatives are gradually making the global tourism industry more environmentally conscious, encouraging sustainable development goals.

From using digital solutions to minimise paper waste to exploiting Big Data for reductions in energy use, the travel and tourism sector is taking steps towards a greener future.

Here are some of the most important sustainability stats in the travel industry:

Online searches for the keyword “sustainable travel” have grown by 26% between March 2019 and March 2024 [34].
Around 80% of travellers admit that travelling sustainably is important to them [35].
75% of global travellers have a desire to travel more sustainably in the next year [36].
Nearly 60% of travellers say that they want to leave a positive impact on the places they visit [37].
26% of travellers have decided to travel outside of peak season to avoid overcrowding [38].
23% of travellers choose destinations closer to home to minimise their carbon footprint [39].
53% of travellers say that they are searching for accommodation that merges comfort with innovative sustainability features in 2024 [40].

All of these findings are key to address when adapting to the digital transformation in travel as a business.

Conclusion

As technology continues evolving, it’s natural that we’ll see more and more exciting digital transformations and new opportunities in the travel space.

By being aware of the changes taking place in the sector, you can take adequate measures to stay ahead of the curve and maintain a competitive edge as a travel company.

Frequently Asked Questions

What is digital transformation in the travel industry?

Digital transformation in the travel industry is the implementation and integration of digital technologies into various processes, services, and customer interactions in travel.

What are the main challenges for travel companies in their digital transformation journey?

Some of the core challenges in digital transformation for travel companies include adopting new technologies, ensuring cybersecurity, managing costs, and keeping up with fast-changing customer preferences.

What are some of the cybersecurity challenges in digital travel?

With the increasing reliance on online bookings and digital payments, cybersecurity is a growing concern in the travel industry. Travel and tourism websites must protect customer data from breaches and fraud, ensuring that sensitive information like payment details and personal identification remains secure.