PurposeConsidering the important role of knowledge management in the global growth of world economies, the importance of knowledge management in the tourism industry can hardly be overestimated. Knowledge management, empowering leadership and innovation can open new research prospects for online travel and tourism, thereby increasing organizational capacity. In this context, this study aims to investigate the relationship between knowledge management practices and transformational leadership, along with the mediating role in this relationship of leadership communication. Knowledge management practices are discussed through the lens of managers’/organizational perspectives working in the online travel and tourism industry.Design/methodology/approachUsing a descriptive research method, the data were collected from a total of 174 managers/senior executives working in the online travel and tourism sectors. The proposed conceptual framework was evaluated using structural equation modeling through AMOS 21 and Process Macro (SPSS-Plugin).FindingsThe results revealed a significant increase in the adoption of knowledge management practices in the online travel and tourism sector under transformative leadership. The results also highlighted that effective communication is a vital contributor and significant complementary mediator in the relationship between transformative leadership and knowledge management practices.Practical implicationsThe results of this study suggest that transformational leaders, who are equipped with the “high touch” nature of leadership and the “high tech” aspect of the contemporary workplace, are the best fit to manage online travel and tourism organizations. To have an adequate knowledge management system, knowledge managers should adopt a transformative leadership style and receive comprehensive training in developing leadership abilities such as effective communication competencies.Originality/valueTo the best of the authors’ knowledge, this study is the first to demonstrate that, in emerging online travel and tourism sectors, organizational knowledge can be managed through effective leadership communication.