Singapore uses AI, data for high-value tourism

Singapore's Tourism Strategy Shift

The Singapore Tourism Board (STB) expects a moderation in visitor spending, influenced by broader macroeconomic conditions. This outlook drives a strategic adjustment towards intelligence-led initiatives, aiming to draw travellers who offer greater economic value.

Edmund Ong, General Manager of Trip.com Singapore, observed that such conditions were already affecting markets like Indonesia, where a weakening rupiah impacted demand for outbound travel, particularly within mid-market segments.

Despite these challenges, the International Air Transport Association (IATA) projects global air passenger traffic to increase by 2.1 per cent in 2026. Singapore has concurrently invested in new MICE facilities, expanded its cruise and air hubs, and upgraded key tourism areas such as Orchard Road and Sentosa.

Focus on Premium Travellers

To boost tourism receipts beyond simple arrival numbers, Singapore's strategy prioritises premium travellers, who are typically less sensitive to global economic shifts. Trip.com data shows that these high-value visitors spend approximately 10 to 12 times more on average in Singapore compared to mass-market travellers.

This approach aligns with a broader consumer trend: an American Express report from earlier this year revealed that 74 per cent of Millennials and Gen Zs consider travel a non-negotiable expense in their lifestyle. Singapore aims to capitalise on this segment by understanding their preferences and delivering targeted offerings.

Leveraging Data and Artificial Intelligence

The global travel industry is increasingly turning to intelligence, a trend highlighted by this year's World Tourism Day theme, 'Digital Agenda and Artificial Intelligence to Redesign Tourism'.

Trip.com data shows that integrating search functions with AI has increased booking conversion rates by 4 per cent and reduced the effort required in search by 11 per cent, demonstrating how smarter recommendations can accelerate bookings.

Singapore has already seen the benefits of data-driven programmes, such as the STB’s Data Analytics Shift (Commercial) Programme (DASH), which helps tourism businesses refine strategies and enhance digital marketing.

A Travelport survey in August of American consumers also indicated that close to half abandoned bookings due to complexity, with 38 per cent stating fewer options would improve their experience, underscoring the need for intelligent recommendations.

Democratising Intelligence and Future Growth

The impact of AI on traveller engagement is significant; Trip.com's TripGenie AI travel assistant saw its order volume increase fivefold year-on-year in 2025 and kept users engaged with the app for over 20 minutes on average, double the time of non-users.

For Singapore to fully realise the value of intelligence across its tourism ecosystem, this data must be accessible to all tourism businesses, not just major platforms. The STB's Tcube platform, which includes DASH and the Singapore Tourism Analytics Network (STAN), provides shared tourism datasets and insights.

This infrastructure allows operators to make data-driven decisions without needing extensive in-house data science capabilities, ensuring that every visitor to Singapore translates into the fullest possible value.