Published on
January 6, 2026
South Africa’s online travel sector is expected to grow dramatically over the next decade, driven by the rapid advancement of digital technologies and the growing role of artificial intelligence (AI) in reshaping how travellers interact with the tourism industry. According to a recent IMARC Group report, the country’s online travel market, which was valued at $2.54 billion in 2024, is expected to nearly double to $5.96 billion by 2033. With a compound annual growth rate (CAGR) of 9.93% between 2025 and 2033, the country’s travel industry is set to undergo significant transformation.
Artificial Intelligence Reshaping the Travel Experience
The integration of artificial intelligence (AI) into the travel ecosystem is one of the key drivers behind this growth. South Africa is leading the way with the launch of AI-powered travel tools that enhance the overall experience for travelers. A standout initiative, launched by South African Tourism, is Siyanda, an AI-driven travel assistant. This tool provides personalized travel itineraries and real-time destination guidance for North American travelers. AI chatbots have also gained widespread adoption in the country, efficiently managing customer enquiries, supporting bookings, making restaurant reservations, and offering tailored travel recommendations.
AI’s impact on South African travel is evident, with nearly half of the country’s population reporting the use of AI tools for trip planning. The younger demographic, in particular, is keen on leveraging AI for more personalized travel experiences. Travel platforms are deploying AI-powered dynamic pricing models and revenue optimization systems that analyze customer behaviour to customize travel packages. Additionally, augmented reality (AR) tools, powered by AI, allow potential customers to preview accommodations and activities, providing a more immersive pre-booking experience.
The Rise of Mobile-First Travel Platforms
The trend toward mobile-first platforms is another significant contributor to the rapid expansion of South Africa’s online travel market. With over 50 million internet users and a steadily growing digital infrastructure, smartphones and tablets have become the primary tools for researching, booking, and managing travel. Around 84% of travelers report that these mobile devices enhance their travel experiences, prompting travel platforms to adopt AI-powered customer support, one-click payments, and real-time itinerary updates.
The mobile-first approach is extending travel accessibility beyond major urban centres. As mobile infrastructure and digital literacy improve in more remote areas, platforms are making AI-driven customer service tools available in underserved regions, enabling a broader base of travelers to enjoy seamless travel experiences.
Shifting Traveler Preferences Toward Sustainability
Sustainability has become a central consideration for South African travelers, with approximately 80% of travelers now factoring the environmental impact of their travel decisions. Online platforms have responded to this growing demand by incorporating sustainability filters that allow travelers to easily identify eco-friendly accommodations, heritage lodges, and community-run tourism initiatives. This shift toward sustainability is also evident in the growing popularity of off-the-beaten-path destinations such as the Karoo, Wild Coast, and Northern Cape.
Travel providers are capitalizing on this trend by promoting eco-conscious travel options and encouraging off-peak travel to distribute economic benefits more evenly across the country. As travelers seek to reduce their carbon footprints, the tourism sector is adjusting by focusing on responsible and sustainable travel options that align with the changing values of the modern traveller.
Flexibility in Travel Planning
The unpredictability of economic factors and the rise of remote work arrangements have contributed to a surge in demand for flexible travel options. A growing percentage of South African travellers—about 40%—now prefer last-minute bookings, a sharp increase from 31% just four years ago. This shift in behaviour is pushing travel platforms to offer more flexible options, including real-time pricing, instant bookings, and the ability to reschedule or cancel travel plans without significant penalties.
This trend is particularly prominent among younger travelers, who are more likely to make spontaneous travel decisions in response to flexible work arrangements and changing economic circumstances. The travel industry has adjusted to this demand by providing greater flexibility, catering to the desire for instant travel decisions and reducing the friction in the booking process.
Infrastructure Investments and International Tourism Growth
As the online travel market continues to expand, significant investments in infrastructure are set to further boost the sector. One of the most significant developments is the planned upgrades to Cape Town International Airport, with an investment of over R20 billion set to begin in 2026. These improvements are part of a broader strategy to attract 15 million international visitors by 2030. The expansion of airport infrastructure, combined with the government’s push to make South Africa more accessible to international travelers, is expected to support the growing demand for online travel services.
The country has already seen a marked increase in inbound tourism, with the United States emerging as South Africa’s largest overseas market in 2024. This trend is expected to continue, further fuelling growth in the online travel sector and making South Africa an attractive destination for travelers seeking a unique and immersive experience.
South Africa’s Unique Position in the Global Travel Market
The rise of AI, mobile-first platforms, and shifting consumer preferences toward sustainability and flexibility are driving South Africa’s online travel sector to new heights. The integration of advanced technologies is enabling South African travel providers to offer more personalized, efficient, and sustainable travel experiences, positioning the country as a leader in the rapidly evolving travel industry.
As more travelers turn to digital tools for planning and booking their trips, South Africa’s online travel market is set to continue its trajectory of growth. The combination of AI-powered solutions, mobile-first platforms, and a growing emphasis on sustainability will play a crucial role in shaping the future of travel in South Africa, ensuring that it remains a top destination for both domestic and international tourists.
Conclusion
With AI at the forefront, digital innovation, and changing traveller preferences, South Africa’s online travel market is set to skyrocket over the next decade. The nation’s emphasis on mobile-first solutions, sustainability, and flexibility is perfectly aligned with the future of global travel. As the industry evolves, South Africa is well-positioned to lead the way in providing innovative, personalised, and sustainable travel experiences to an ever-increasing number of tech-savvy travellers.
