🛫 Travel industry costs are shifting: in 2021, Google travel keywords were $1.40 per click, increasing to $2.12 by 2025. AI agents now offer searches for $0.01-$0.05, with cheaper models at $0.001. Airlines pay less than 3% per booking due to early infrastructure investments, while hotels pay 15-25% commissions to OTAs. Travelport and Anthropic are partnering to use AI for inventory distribution, highlighting a market transition. Expedia acquired CarTrawler amid shifting commission models. Adaptation is crucial to avoid high costs.

🌍 South Africa's market features a youthful, mobile-first population with improving payments infrastructure. Challenges include infrastructure reliability, cost pressure, and safety perceptions. The domestic travel sector faces a "volume-value" gap, while regional visitors bolster inbound travel despite uneven long-haul recovery. Emerging AI, from tourism-board assistants to traveler adoption, and regulatory factors will influence digital transformation's impact on growth.