02 Jun TRAVEL MARKETING STATISTICS IN 2023
The travel and tourism industry is projected to experience significant growth over the next few years. According to a recent report, the market value is expected to reach $637.7 billion by 2022, and a 10.47% annual growth will result in a market volume of $949.6 billion by 2026. The largest segment of the market currently is hotels, with a market value of over $312 billion by 2023.
This growth can be attributed to a number of factors, including the increasing global population and the growing disposable income of consumers. In addition, the industry is being boosted by the rise of online booking platforms and the increasing popularity of staycations and other forms of alternative tourism.
The travel industry is undoubtedly constantly evolving. In order to stay ahead of the curve, it is important for businesses within this industry to keep track of the latest marketing statistics. So, what does the future hold for travel marketing? In order to answer some of the trending questions, we at Amra & Elma have carefully compiled a list of 12 important travel marketing statistics for 2023.
Travel Marketing Statistics (Editors Choice)
- 2022 travel industry ad expenditures grew by 36% in comparison to 2020
- 44.9% of travel marketers believe travel ad spending recovery will take place between 2025 and 2030
- 35% of people find new travel destinations on Instagram
- 69.8% of people use search engines for general web searches to plan their travel, and 36.5% use social media for travel inspiration or ideas
- Referral marketing has an average conversion rate of 9.5%
- 30% of travel marketers see Facebook as the most effective way to target new audiences and 28% of them say the same for Instagram
Top 14 Travel Marketing Statistics in 2023!
TRAVEL MARKETING STATISTICS #1 – Travel industry ad expenditures in 2022 grew by 36% in comparison to 2020
The travel sector is forecasted to see a significant increase in ad spend growth globally from 2021 to 2023. According to Statista, in 2021 the travel industry ad expenditures have grown by 24 percent compared to 2020. This growth is expected to continue in 2022 with an estimated 36 percent increase, followed by slower but still strong growth of 19 percent in 2023. These forecasts indicate that the travel sector is ripe for marketing opportunities and brands should take advantage of this growing trend to reach their target audiences. Travel marketing campaigns that are well-timed and well-executed have the potential to generate significant ROI for brands in the travel sector. Savvy marketers closely monitor travel sector ad spend growth trends to ensure that their budgets are allocated effectively.
TRAVEL MARKETING STATISTICS #2 – 44.9% of travel marketers believe travel ad spending recovery will take place between 2025 and 2030
Travel ad spending is not expected to return to pre-pandemic levels until 2025, according to a recent survey of travel marketers. The survey, conducted by Sojern, found that 81 out of 216 respondents believe budgets will be “back to” normal before 2025, while 97 think the recovery will take place between 2025 and 2030. 38 travel marketers said the recovery wouldn’t take place until “after 2030.” These findings suggest that travel marketers anticipate a slow and gradual recovery for the industry as a whole. While this may be discouraging news for some, it’s important to remember that travel ad spending was on the rise even before the pandemic hit. In fact, travel ad spend grew from $4.8 billion in 2018 to 2019’s spending of $6 billion, according to eMarketer. As such, it’s likely that we will see a similar level of growth once spending recovers.
TRAVEL MARKETING STATISTICS #3 – 35% of people find new travel destinations on Instagram
It’s no secret that social media has a huge impact on the travel industry. Platforms like Instagram have changed the way we discover new places to visit, and it’s now easier than ever to share our experiences with the world. According to research, 48% of respondents choose their travel destination based on what they see on Instagram, while 35% of the respondents discover new places to visit from the platform. With such a large percentage of people being influenced by Instagram, it’s clear that businesses in the travel industry need to be active on the platform if they want to stay competitive.
TRAVEL MARKETING STATISTICS #4 – 86% of people make decisions on travel destinations based on user-generated content they’ve seen
User-generated content has become an increasingly important part of the travel industry, with 86% of respondents in a Stackla study saying they have been inspired to visit a specific location after seeing UGC about it. While traditional advertising still has its place, UGC is often seen as more authentic and trustworthy, making it a powerful marketing tool. By featuring user-generated content on their platforms, businesses harness the power of word-of-mouth marketing to reach new audiences and inspire potential customers to learn more about their products or services.
It’s no surprise that people are using search engines and social media more than ever to plan their travels. What is surprising, however, is the extent to which people are relying on these sources. According to Statista nearly 70% of respondents said they used search engines for general web searches related to their travels, and over a third said they used social media websites for travel inspiration or ideas.
TRAVEL MARKETING STATISTICS #6 – The hashtag #travel has drawn 49.3 billion views on TikTok, with 3.8 million videos created under this hashtag
Many people enjoy watching travel videos on social media like TikTok, and hashtags related to travel can draw a large number of views. According to data from May 2021, the hashtag #travel has drawn an impressive 49.3 billion views, with 3.8 million videos created under the umbrella of this hashtag. The hashtag #tiktoktravel has also drawn a whopping 24.5 billion views, while other popular travel-related hashtags include #wanderlust (1.1 billion views) and #traveldiaries (2.2 billion views). It still remains to be seen how long this trend will continue.
TRAVEL MARKETING STATISTICS #7- Booking Holdings’ marketing expenses totaled $3.8 billion in 2021 – a 74% increase from 2020
According to Statista Booking Holdings spends billions of dollars each year to promote its brands, which include Booking.com, Kayak, Agoda and Priceline. In 2021, Booking Holdings’ marketing expenses totaled $3.8 billion, an increase of 74% or $1.6 billion from 2020. The sharp increase is due in part to the effects of the coronavirus (COVID-19) pandemic on the travel industry. In 2020, the company’s marketing budget fell sharply as businesses worldwide curtailed their spending amid the pandemic. However, as the vaccine rollout has picked up pace and travel restrictions have begun to ease, Booking Holdings has been quick to ramp up its marketing efforts.
TRAVEL MARKETING STATISTICS #8 – The travel sector’s digital ad spend in 2020 decreased by 51% from 2019
In 2019, the travel sector spent 6.09 billion dollars on digital advertising, but that number is expected to drop to 4.54 billion by 2023 according to Statista. The decrease in spending is due to the decline in travel bookings and the cancellation of trips. The outbreak of the coronavirus pandemic has also led to a decrease in international tourism, which is another blow to the sector. Despite the challenges, the travel industry is hopeful that it will eventually recover and return to its previous levels of activity.
TRAVEL MARKETING STATISTICS #9 – Expedia Group had a $4.1 billion in ad spend in 2021
As the online travel industry becomes increasingly competitive, companies are ramping up their marketing spending in order to gain market share. This is particularly true for Expedia Group, which outspent its closest competitor, Booking Holdings, by $300 million in 2021 with an ad spend of $4.1 billion, according to PhocusWire. The increase in marketing spending is a reflection of the company’s commitment to growth, and it is likely that this trend will continue in the coming years. With a portfolio of well-known brands such as Vrbo, Expedia, Travelocity and Trivago, Expedia Group is well-positioned to compete in the online travel space. However, it remains to be seen whether the company will be able to maintain its market share in the face of increasing competition.
TRAVEL MARKETING STATISTICS #10 – 79% of travelers now use their phones for booking accommodation and transport
As the world continues to become more and more interconnected, it’s no surprise that mobile devices are playing an increasingly important role in the travel industry. According to Google, flight and hotel bookings are now among the top 9 most-searched items on mobile devices. What’s more, around 79% of travelers now use their phones for booking accommodation and transport, as compared to 70% in 2016. This suggests that mobile bookings are becoming increasingly popular, as travelers appreciate the convenience and flexibility that they offer. With travel searches for today and tomorrow on mobile devices increasing by 150% in the last two years, it’s clear that this trend is here to stay.
TRAVEL MARKETING STATISTICS #11 – 53% of travel and hospitality companies use personalized emails
According to Adobe, 53% of travel and hospitality companies now use personalized emails, and 67% of them use responsive mobile emails. These numbers reflect a growing trend towards tailor-made, user-friendly content that can be accessed from any device. By personalizing their email content and making it more responsive to mobile users, companies in the travel and hospitality industry are ensuring that their messages reach a wider audience.
TRAVEL MARKETING STATISTICS #12 – 30% of travel marketers see Facebook as the most effective way to target new audiences, and 28% of them say the same for Instagram
According to Sojern, social media is by travel marketers seen as the most effective way to target new audiences on a global scale, with Facebook (30%) and Instagram (28%) leading the pack. However, when it comes to engaging with loyal members, only 4% of travel marketers feel that Facebook and Instagram are effective. This could be because loyalty programs are designed to reward guests for their repeat business, and social media is not always the best platform for developing long-term relationships. Instead, travel marketers are focusing on loyalty program communications that are tailored to each guest’s individual needs and preferences.
TRAVEL MARKETING STATISTICS #13 – on average organic search drives 30.7% of website traffic
There is no doubt that organic search is one of the most important traffic drivers for travel websites. In fact, according to a recent study, on average organic search drives 30.7% of website traffic. This is significantly higher than the next highest traffic driver, which is the paid search which drives 19.6% of website traffic.
TRAVEL MARKETING STATISTICS #14 – referral marketing has an average conversion rate of 9.5%
Travel marketers are always looking for ways to increase their conversion rates and one of the best ways to achieve higher conversion rates is through referrals. When a satisfied customer refers a friend or family member, there’s a good chance that they’ll also convert. In fact, referral marketing has an average conversion rate of 9.5%. This means that for every 100 customers who are referred to the travel business, nine or ten will make a booking.
The Future of Travel Marketing
As the world of tourism continues to grow and evolve, so too does travel marketing. Businesses within this industry need an edge by staying on top of current trends in order for them to succeed with their own travel marketing strategies. With the rise of online booking platforms, staycations are becoming more popular than ever before. This has created a huge opportunity for businesses in this industry to explore new markets and reach travelers who might not otherwise be interested in their products or services!
Some key findings on travel marketing include that social media has become an increasingly important channel for promoting travel brands, while email continues to be a powerful tool for driving conversions. The studies also found that mobile devices are becoming an increasingly popular way for travelers to plan their trips, so businesses need to ensure their websites are optimized for mobile devices.
What Is Travel Marketing and Why Is It So Important?
Travel marketing is the process of creating and delivering value to customers to generate profitable customer relationships. It is a strategic process that starts with understanding customer needs and desires and then developing marketing programs that meet those needs. The main goal of travel marketing is to create a preference for your travel products or services over the competition.
There are many different aspects to travel marketing, including advertising, public relations, online marketing, and event marketing. All of these activities of travel marketing campaigns are aimed at increasing awareness of your travel brand and encouraging people to book travel through your company.
One of the most important aspects of travel marketing is creating an effective advertising campaign. Advertising is the process of creating messages that promote your product or service and persuade people to buy it. As one of the most relevant parts of any travel marketing campaign, advertising can be done in many different media, including TV, radio, newspapers, magazines, online, and outdoor advertising (such as billboards and bus stops).
Public relations is another key component of travel marketing (PR). Building trusting connections with the media and other important stakeholders in the process of public relations campaigns. By doing this, you can create positive publicity for your brand and encourage people to book travel through your company. PR activities as key elements of travel marketing can include press releases, interviews, articles, blog posts, social media outreach, and event sponsorship.
Online marketing is also an important part of travel marketing. This includes things like website design and development, search engine optimization (SEO), pay-per-click advertising (PPC), email marketing, and social media marketing. By using these online tools effectively, you can reach a large number of potential customers and encourage them to book travel through your company.
Finally, event marketing is another valuable tool for promoting your brand with travel marketing campaigns. Events can be used to increase awareness of your company, build relationships with potential customers, and generate leads. They can also be used to strengthen relationships with current customers and encourage them to book future trips through your company. As a crucial part of travel marketing campaigns, events can take many different forms, such as trade shows, roadshows, webinars, or even social events like parties or networking events.
The importance of travel marketing cannot be overstated. Marketing is the process of creating awareness and excitement for a product or service, and travel marketing is no exception. A well-executed travel marketing campaign can generate interest in traveling to a destination, increase tourism spending, and create jobs in the tourism industry. A strong travel marketing campaign can have a significant impact on these numbers. To create an effective travel marketing campaign, destinations must understand what motivates travelers and develop marketing strategies that resonate with potential visitors.
A well-executed travel marketing campaign can have a significant impact on tourism numbers. It can create awareness and excitement for a destination, increase tourist spending, and create jobs in the tourism industry. To be effective, however, destinations must understand what motivates travelers and develop travel marketing strategies that resonate with potential visitors.