Travel booking companies spend a lot on marketing
In a bid to entice more people to book flights and accommodation, travel booking agencies are spending heavily on advertising, Reuters reported on Friday (May 13).
It comes as the summer travel season looms and companies want to try and get travel back to pre-pandemic levels.
Various companies like Airbnb, Booking Holdings, and Expedia have been among the biggest losers from the pandemic since its onset in 2020, as COVID quashed travel plans and, more broadly, the need to travel at all.
Now things may be looking up, with about six in 10 Americans planning to take at least one summer trip in 2022, according to data from the nonprofit US Travel Association.
Some analysts have speculated that it could be the biggest summer travel season in years. This comes with a new deluge of spending, with the industry set to spend 14.2%, or about $4 billion, on digital advertising, according to statistics from marketing firm Insider Intelligence.
Reuters wrote that increased spending could reduce short-term benefits, though the benefits are likely to be much greater later.
The report said March ticket prices for U.S. domestic flights rose 15% month-on-month, although the rise did not hurt flight demand. As such, Reuters posits that Americans are currently unbothered by inflation in this regard.
PYMNTS recently wrote that Airbnb has set up a Trust & Safety Advisory Coalition (TSAC) to advise the company on how to make people feel safe when traveling.
Read more: Airbnb Intros Safety Advisory Coalition
TSAC will help promote a “trusted experience” before, during and after travel. It will be made up of 22 industry organizations and will advise Airbnb on “community policies, products, support, resources and training,” the company said.
TSAC has already hosted an in-person meeting in Washington, DC, and the group will meet quarterly to brainstorm and provide progress reports, sharing ideas between meetings.
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