Algorithmic travel: Finding the best holiday at the lowest price is topping the agenda for consumers globally as they plan their vacations. According to a study by Which? European package holidays have seen a price hike of up to 11.5 per cent this year in comparison to 2024. Add this to the rising cost of inflation globally, and it appears that increasing numbers of holidaymakers are going to online travel agents (OTAs) in search of a bargain. Research from Skift shows that in 2024, 26 per cent of travellers said they used an OTA for researching flights, with 36 per cent revealing they used them for booking flights.

The shift to the online travel agent appears to be down to price, convenience and the technology behind sourcing the lowest rates. A recent UK survey found the British population prefer to book online for a number of reasons, mainly being that they (46 per cent) believe it is a cheaper option.

Algorithmic travel

Some travel websites achieve the lowest price through Application Programming Interfaces. These are specifically designed to draw price comparisons whilst also tracking costs. Think of them as a middleman (when researching trips abroad) between all of your websites, airlines, hotels and car rentals. It sort of resembles a set of instructions that allows websites to communicate with airline systems. Some online travel agencies such as Expedia or Priceline are open about their ability to navigate low prices through sophisticated algorithms. These offer competitive pricing while ensuring profitability for the online travel agent.

Such algorithms record elements of interest to the consumer, such as past pricing trends, specific routes and purchasing behaviour. Dynamic pricing means the costs of flights and hotels can fluctuate rapidly. This often makes booking with an online travel agent seem more appealing to the masses, with many using travel aggregators. In case you are unaware, aggregators are websites that uncover travel offers and prices across multiple sources and advertise them in a single place.

Speaking about the benefits to consumers of using aggregators and the tech behind them, Angus Kidman, editor at large and travel expert at Finder, said, “Using an aggregator can be really useful to get an idea of what your options and the prices are. And you can sometimes find some good deals. Having said all that, I’m a lot more cautious about actually booking through the aggregator, because that can lead to problems.” As a travel fare aggregator website and travel metasearch engine, Skyscanner is one of the most popular websites for holidaymakers looking for a good deal. 

Tech travel

Jarrod Kris, travel expert and principal commercial manager for APAC with Skyscanner, has made it no secret that most users are simply using their tech to search for a good deal. “Every day we search 80 billion prices and construct 30 billion itineraries for millions of travellers around the world. Skyscanner’s searches for travellers help them find the best deals for both single-leg and multi-leg flights alike.”

LoveHolidays is another company that successfully runs its online travel bookings through an aggregator system. Speaking at the Travel Media Meet the Media event in Dublin recently, Commercial Director for Ireland, Clem Walshe proudly spoke about the technology they use “we have our own AI-patented systems, we are more of a tech company, democratization of travel is a huge part of what we do. We are up 17 percent year on year and have more families than 2024. It seems there has been a shift to online. People on the go love booking and in January alone, we had 100 bookings each day.”

Such is the increase in demand for consumers seeking the best price, so Google has introduced a new feature to Google Flights. Named the “cheapest” tab, it’s designed to make the search for lower cost trips easier for search engine users. There’s no doubt about it, an appetite for algorithms from companies and sourcing the best price for consumers are reshaping the travel industry globally and, for what some may say is the greater good.