The travel distribution ecosystem has evolved considerably over the last decade, with the pace of change increasing. While traditional forms of distribution remain paramount, the ecosystem is made more complex by the number of new entrants and technologies which are driving change.

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As Australia can be perceived as a complex long-haul and infrequent destination for travellers, distribution is key to convert travel intentions into trips to Australia. There is accelerating change in the sector, including:

• A shift to booking flights directly with airlines, however this is highly dependent on familiarity, travel group, spend level and trip complexity. Some businesses are investing in loyalty programs and customer experience to incentivise direct bookings.

• Travellers have more options and are booking across multiple channels for the same trip.

• On the consumer side, familiarity and confidence with online purchasing have grown significantly during the pandemic along with consumer expectations around personalisation and ability to purchase now.

• On the technology front, the integration of booking capabilities within social media platforms is seeing social commerce enable the purchase of a range of products, including travel, directly within platforms, bringing influencers and content creators into the booking phase of the path to purchase.

• And as with all sectors, Artificial Intelligence (AI) is reshaping travel distribution by enabling greater personalisation at scale, dynamic pricing and improving operational efficiency

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This report aims to provide high level insights and recommendations to support tourism operators and the Australian tourism industry in responding to rapidly evolving consumer dynamics and the global travel distribution landscape.

As traditional roles for ecosystem players evolve and the impact of new entrants and technologies starts to take effect, this report is intended to stimulate discussion and provide context for the Australian tourism sector.

Informed through research, data analysis, targeted surveys and engagement with stakeholders across the travel distribution landscape, the report discusses how consumer needs and expectations are evolving and identifies four mega themes shaping the continuing evolution of the travel distribution ecosystem. The resulting Insights Report is intended to be an input for industry as they reflect on their own distribution strategies considering these evolving trends.

These themes flex across booking and consumer needs, technology, broader landscape complexity, and articulating a future travel distribution ecosystem that is diverse and evolving – surfacing both big changes and opportunities.

The timing of the report is an important consideration. The lingering effects of the pandemic, including pent-up demand, altered consumer preferences and supply chain disruptions are all likely to have created short-term anomalies in travel patterns and distribution dynamics. While this report has been developed at a time when data and trends are beginning to normalise, it is important to note that some observed trends and perspectives might be temporary, influenced by the unique circumstances of the pandemic recovery

• Project context
• A complex travel distribution ecosystem
• Consumer snapshot – changing face of travel
• The future of travel distribution
• Channel proliferation
• Tech democratisation
• Rising expectations
• Complexity intensifies