Taylor Swift can sing “Cruel Summer” all she wants, but travel advertisers are having the time of their lives after almost three years of limited spending during the pandemic. 

According to MediaRadar data, more than 14k travel advertisers spent over $2.4b between January and May 2023, representing a 6% YoY increase—and that’s no surprise since more than half of Americans plan to hit the roads, seas, and sky in the coming months. 

TV Ads Aren’t Getting As Much Love 

In Q1, spending from travel advertisers increased by 17% YoY to $1.6b, with January seeing the biggest jump at 37% YoY to $512mm. Meanwhile, February, March, and April saw 12%, 6%, and 4% YoY increases, respectively.

Although spending dipped in May by 20% YoY, thanks to reductions from The Walt Disney Company (down by 51% in May), there’s no doubt travel advertisers are gearing up for what will be a historic season. In fact, travelers are expected to spend an average of $9k on their trips this summer, up by 6.8% from last year and 26.7% from 2021.

Despite the surge, advertisers decreased their investment in TV ads by 10% YoY to $709mm (30% of their overall ad investment). Much of that decrease came from advertisers promoting airlines (down by 71% YoY) and cruise lines (down by 27% YoY). 

For example, Delta Air Lines decreased TV spending by 95% YoY, while Expedia and Royal Caribbean did so by 10% and 53% YoY, respectively. 

But the decline in TV doesn’t mean travel advertisers are ditching traditional formats entirely. 

Through May, spending on print ads increased by 7% YoY to more than $477mm, with much of the increase coming from Norwegian Cruise Line Holdings (up by 191% YoY) and Royal Caribbean (up by 40% YoY) advertisers. 

Travel Advertisers Embrace Online Video (OLV) 

Travel advertisers reallocated some TV ad dollars to online video (OLV), increasing their investment in OLV by 18% YoY to over $573mm (24% of total ad investment). Advertisers at Airbnb, for example, increased spending on OLV by more than 385% YoY as they continue to duke it out with their contemporaries promoting hotels and other lodging alternatives. 

Spending from Airbnb also comes on the heels of a banner year. As pent-up travel demand drove their business, Airbnb reported its best Q4 ever despite fewer bookings on the horizon. 

According to Nicholas Cauley, an analyst at Third Bridge, pressure on household budgets led to consumers choosing more affordable accommodation. He said, “The company [Airbnb] is now facing fierce competition from rivals like Booking.com and Expedia’s Vrbo, so its future looks less certain.”

Advertisers for Bookings Holding (Booking.com and Kayak) responded by increasing their investment in OLV by 270% YoY. 

On top of their investment in OLV, travel advertisers are branching out into other digital channels, including display, and newer ones like TikTok. 

According to Portrait of American Travelers, an annual survey by MMGY Global, about 34% of travelers were influenced by TikTok last year, a 10 percentage point increase from 2021. 

MMGY Global CEO Clayton Reid said, “Early decision-making is where a lot of our respondents talk about how TikTok influences their decision of where to go and where to stay.” 

That said social spending from travel advertisers fell through May.

Not All Travel Advertisers Are Lovin’ Life

Advertisers in six categories were responsible for 85% ($2b) of the spend through May: Lodging, Travel Websites, Cruise Lines, US Tourism Bureaus, Parks and Recreation, and Airlines. 

Despite the looming travel rush this summer, some advertisers aren’t spending as much as they were during last year’s peak season. Parks & Recreation advertisers, for example, decreased spending by 15% YoY to $293mm, thanks mainly to a big decline from The Walt Disney World.

Low pre-summer crowds at the happiest place on Earth likely have something to do with this decline, but a shift in their advertising strategy is undoubtedly behind it, too. 

In early 2022, the company announced it was hiring a social media content coordinator to expand DPEP’s (Disney Parks, Experiences and Products) social media presence, especially on TikTok.

More recently, The Walt Disney Company named its first Chief Brand Officer, Asad Ayaz, to “spearhead marketing for the holistic Disney brand, including setting franchise priorities and overseeing a global consumer research and analytics unit.” That quest began with the “Disney100” campaign celebrating the company’s centennial anniversary.  

At the same time, airline advertisers reduced spending by 33% YoY, including those for American Airlines, Delta, and Southwest who decreased their investments by 31%, 80%, and 17% YoY, respectively. That said, advertisers for United increased spending by 32% YoY. 

The surprising decrease in airline advertising comes at a time when much of the industry is bullish on travel during an economic downturn. “If we’re in the middle of a recession, this is the best recession the airline industry has ever seen,” said United Chief Commercial Officer Andrew Nocella. 

Still, there’s no denying the industry’s operating model is changing. United Airlines’ CEO Scott Kirby said, “You can’t run your airline like it’s 2019 … the world really has changed.” 

For airline advertisers, that could mean fewer ad dollars to spend, or existing ones spent in different ways (like on TikTok). 

Travel Advertisers Look Ahead

The chance of a recession in the US is crumbling, and travel advertisers are responding accordingly. 

Through May, Lodging advertisers increased their investment by 7% YoY to over $513mm, with names like Airbnb (+82% YoY), Centerbridge Partners (+90%), and Marriott International (+25% YoY) all spending big. 

At the same time, ads for Travel Sites (+31% YoY to $458mm), Cruise Lines (+10% YoY to $360mm), and US Tourism Bureaus (+31% YoY to $305mm+) increased.

Travel advertisers are clearly shaking off any remaining bad blood, and with consumers showing little hesitation to give up their travel plans this summer, it’s a safe bet advertisers will continue to spend. 

For more insights, sign up for MediaRadar’s blog here.

The travel and tourism industry is back firing on all cylinders, and the advertisers working in it are doing everything they can to claw back the trillions they lost in revenue during the pandemic.

Here’s how travel advertisers approached the highly anticipated post-pandemic chapter of their journey. 

From the Sky to the Sea 

In 2022, nearly 19k travel advertisers from airlines, car rentals, and retailers (gas stations and travel plazas) spent $4.6b on ads, representing a 42% YoY increase from 2021. 

The most significant increase came in Q1 when advertisers spent 107% more YoY as lingering travel restrictions vanished and people followed the sun. 

Spending in Q2, Q3, and Q4 jumped by 45%, 33% YoY, and 13% YoY, respectively. 

Advertisers in five categories accounted for 83% ($3.8b) of those dollars: lodging, parks & recreation, cruise lines, U.S. tourism bureaus, and airlines. 

The biggest moves, however, came from advertisers promoting airlines and cruise lines. 

Cruise lines

Advertisers for cruise lines spent nearly $749mm in 2022, increasing their budgets every quarter; spending jumped in Q1, Q2, and Q3 by 247%, 284%, and 139%, respectively.

Overall, advertisers for cruise lines, including Norwegian Cruise Line and Royal Caribbean, increased spending by 140% YoY. 

While cruise line advertisers are back after a turbulent few years, including being stranded at sea, they’re sailing with different mindsets. 

Leaders at Norwegian Cruise Line, for example, don’t expect pre-pandemic occupancy levels to fully return until at least Q3 2023. In Q2, occupancy anchored at 65% compared to 107% in 2019.

On the other hand, Royal Caribbean is seeing record bookings, thanks partly to a rush during “wave season” (a period between January and March) that saw many Americans take advantage of early-year discounts and specials. 

Ad spending is up and will likely remain so throughout 2023, but Royal Caribbean Chief Finance Office, Naftali Holtz, expressed caution. During a recent post-earnings call, he said, “Inflationary pressures and supply chain disruptions continue to put pressure on costs across many categories, including food and beverage.” 

Airlines 

The chart below tells the narrative everyone anticipated and the airline’s harsh reality since the onset of the pandemic.  

With airlines lifting mandates, international destinations easing entry—and exit—restrictions, and exploding demand, airline travel is essentially back to normal. 

According to the United States Transportation Security Administration (TSA), more than 2.4mm people strolled through security on October 16, 2022, the highest daily total since February 2020. 

That level of traffic has stayed constant in 2023. 

Advertisers for airlines have responded, increasing their investments by 121% YoY to $424mm.

Advertisers for Delta and United Airlines were the primary drivers behind the triple-digital increase. 

Through October 2022, advertisers for Delta increased spending by 265% YoY to promote its “Faces of Travel” initiative and woo premium travelers. 

The world’s third-largest airline (as of 2021) also partnered with IBM to “identify unconscious bias in our advertising.”

Meanwhile, advertisers for United increased spending by 304% YoY as it launched its “Good Leads the Way” campaign and shifted their strategy to “be more flexible with both media and message.” 

Maggie Schmerin, the company’s managing director and head of global advertising and social media, said the new message aimed to answer questions such as “Is this a campaign that another airline can easily come in and put their logo on top of?”

While other travel advertisers didn’t boost their budgets to quite the extent of those promoting airlines and cruise lines, their budgets are trending up. 

Lodging advertisers, for example, increased spending by 38% YoY, while those promoting parks and recreation, and U.S. tourism rose by 19% and 31% YoY, respectively. 

Advertisers Split Their Time Between Traditional and Digital Ads

An estimated one million “snowbirds” split their time between the sunshine state and a home in presumably a colder climate. 

Travel advertisers split their budgets between traditional and digital formats. 

In 2022, travel’s five top advertisers spent nearly $1.8b on digital ads (online video, display, and social media platforms). At the same time, they allocated just over $2b to traditional ads.

Lodging advertisers, for example, invested 48% ($636mm) of their budgets in digital while sending the remaining $380mm to online video formats. 

Meanwhile, parks & recreation advertisers, including those from The Walt Disney Company, NFL Enterprises, The Shubert Organization (various U.S. theaters), and Cinemark USA, spent 62% of their ad dollars on digital formats; $286mm of that went to online video ads.

With the expectation of The Walt Disney Company, each of the above parks and recreation advertisers increased spending by more than 100% YoY. Still, advertisers for the happiest place on earth boosted spending by 75% YoY (Disney’s advertisers were the top spender in the category). 

While digital formats are inevitable and will remain so in 2023, advertisers’ embrace of TV and print makes it clear that there’s still a seat for traditional formats.

Airbnb, Hilton Worldwide Holdings (Embassy Suites, Hampton, Hilton, etc.), and Royal Caribbean Group (Celebrity Cruises and Royal Caribbean) spent big on T.V. ads, accounting for 22% of the format’s investment. 

Overall, nearly half of T.V. ad dollars landed on ABC, CBS, and NBC.

Meanwhile, advertisers for U.S. tourism, including California Travel & Tourism Commission, Hawaii Visitors & Convention Bureau, and Visit Florida, relied heavily on print publications (more than $272mm) such as Midwest Living, Real Simple, and Travel + Leisure.

Travel Advertisers Shrug Off Economic Uncertainty 

How are consumers spending in the face of intense economic headwinds? 

It depends on who you ask. 

According to PwC, consumers are cutting back on all “non-essential” expenses. It’s fair to put travel into the “non-essential” bucket.

Many economists also predicted that spending would drop, which seemed to be coming true toward the end of 2022. 

Then came 2023. 

According to Shannon Seery, vice president and economist for Wells Fargo’s corporate and investment bank, “If they have money, they’ve shown us they’re going to spend it.” 

But they’re not just spending on necessities—they’re splurging on restaurants, travel and other experiences put on hold by the pandemic.

Travel advertisers see the writing on the wall. 

In January, advertisers increased spending by 23% YoY to nearly $411mm, representing an uptick that’ll continue for the rest of the year as people make up for lost time and fully embrace “revenge travel.”  

For more insights, sign up for MediaRadar’s blog here.

The Chinese philosopher Lao Tzu said, “The journey of a thousand miles begins with one step.”

Unfortunately, that step was impossible when all-things travel went on a pandemic-induced hiatus—and the industry felt it to the tune of $935b in lost revenue. 

With restrictions largely gone and “revenge travel” sweeping the nation, travel advertisers are getting back into the swing of things. 

Here’s what those strategies looked like in 2022 and what they can tell us about 2023.

MediaRadar Insights on Travel Advertising in 2022

Through October 2022, travel advertisers invested $3.7b in ads, representing a 55% YoY; the average monthly investment increased by almost 66%. 

A level deeper, Q1 saw the biggest uptick as advertisers from companies like Airbnb, The Walt Disney Company, and Norwegian Cruise Line collectively increased budgets by 113% YoY. 

While spending cooled—Q2 and Q3 were up by 49% and 38% YoY—the investments are still impressive. 

Combine that with a strong start to Q4 (up by 17% YoY) and more than half of Americans saying travel’s a necessity, even during a recession, and it’s clear that travel advertising is headed for a big 2023.

Top Travel Advertisers in 2022

Launching travel advertising to new heights were companies in five categories—lodging, parks and recreation, cruise lines, U.S. tourism, and airlines—that combined to spend more than $3.1b or 84% of the industry’s investment.

Lodging

Through October, lodging advertisers spent $1.1b, representing a 53% YoY increase.  

A level deeper, advertisers for vacation rentals spent $410mm, driven by sizable investments from Airbnb and Expedia. 

Airbnb

In August, Airbnb reported a revenue increase of 58% YoY. 

Airbnb Co-Founder and CEO Brian Chesky said, “The second quarter of 2022 demonstrates we have achieved growth and profitability at scale…Our strength this quarter is the result of our ability to stay focused and disciplined while continuing to relentlessly innovate.”

When Chesky spoke in Q3, it seemed like he was reading from the same script. 

The past few years have been kind to Airbnb—and its ad spending reflects that. 

Through Q3, advertisers increased spending by 120% YoY.

While spending’s up, advertisers are blazing their own trail by moving away from often pricey PPC campaigns in favor of “broader marketing initiatives.”

The pandemic accelerated that shift and pushed more dollars into brand marketing, video, social media, OTT and CTV. 

Expedia

Expedia may not be making headlines like Airbnb, but it’s still growing, with gross bookings up by 58% YoY in Q1.

Despite that growth and continued pressure from Airbnb, advertisers at Expedia reduced their budget by 11% YoY. 

Given the company’s growth from a financial standpoint, the decrease in spending could be nothing more than a reset while it rolls out a new strategy. That said, it could also foreshadow what spending will look like in the post-pandemic travel landscape for everyone not named Airbnb. 

Parks and recreation

Amusement parks—the driving force in the parks and recreation category—rarely close, so when Walt Disney World shut its doors in 2020, people were shocked. 

Its advertisers were undoubtedly shocked as well.  

Other advertisers in this category shared this sentiment, so it’s no surprise that spending has increased as the pandemic waned. 

Through Q3, parks and recreation advertisers increased spending by 46% to $650mm, with the greatest increase coming in Q1 when it rose by 152% YoY. That said, October experienced a 23% YoY decrease, which could point to a spending adjustment. 

The Walt Disney Company

Through October, advertisers for The Walt Disney Company spent 51x that of the next biggest advertiser: Comcast (Universal Studios’ brands).

The almost unbelievable disparity in strategies speaks to the industry—one that Disney has wrapped around its finger—but it could also point to how other advertisers will spend in 2023.

Orlando Universal Resort, for example, was one of the biggest spenders in the resorts category, along with Atlantis Paradise Island and Disneyland Resort. 

With Minnie and Mickey dominating this pocket of the industry, others may see the writing on the wall and shift their budgets to less-crowned ecosystems.  

Cruise lines

Through the first nine months of the year, cruise line advertisers increased spending by 178% YoY to $593mm. 

Their most significant increases came in Q1 and Q2 when spending jumped by 247% and 284% YoY, respectively. Spending in Q3 came in at a no-less-impressive 139% increase.

It’s safe to say that cruise line advertisers are back—and Norwegian Cruise Line and Royal Caribbean are riding the wave. 

Norwegian Cruise Line & Royal Caribbean

Advertisers for Norwegian Cruise Line and Royal Caribbean, who combined to spend $274mm, increased their budgets by 156% and 146% YoY, respectively. 

Like all travel advertisers, budget increases come in the wake of 70% of travelers spending a ton to do anything but stay inside. 

That said, their strategies in 2023 are anything but set in stone and will hinge heavily on how the cruise industry recovers—something that these two industry giants don’t agree on.  

On the one hand, Norwegian Cruise Line projects that pre-pandemic occupancy is still a year away. To put this into perspective, its Q2 occupancy of 65% paled in comparison to the 107% it reported in 2019.

On the other hand, Royal Caribbean is forecasting triple-digital occupancy.

Under normal circumstances, their ad strategies would reflect their different outlooks. But these aren’t normal times, and cruise lines are fighting to recoup lost revenue.

The more likely scenario in 2023 is a big game of follow-the-leader, with competing cruise lines going toe-to-toe to get eager travelers to board at their ports. 

U.S. tourism

U.S. tourism advertisers spent $432mm through October, representing a 24% YoY increase; September was the only month that saw spending decline.

Advertisers for California Travel and Tourism and Charleston Area Convention & Visitors Bureau were two of the category’s biggest spenders. 

California Travel & Tourism Commission

Advertisers for California Travel and Tourism increased their budget by 12% YoY, with peak spending coming in Q1, which makes sense as many Americans fled the cold.

Interestingly, print advertising disappeared in July, followed by a surge in digital spending in mid-September. 

Advertisers also invested significantly in TV. Despite an 8% YoY decrease, TV spending nearly topped $20mm.

Charleston Area Convention & Visitors Bureau 

Advertisers for Charleston Area Convention & Visitors Bureau increased spending by 24% YoY, but they took a different path than their contemporaries in California. 

First, they opted against a spending spree in Q1, which is surprising given the state’s popularity during the winter months.

Second, they didn’t invest a dime in T.V., but they did dish out more than $900k on print ads. 

While the contrasting strategies are intriguing, both advertisers are primed to spend in 2023 as travel costs continue to rise and vacations close to home grow in appeal.

Airlines

Airline advertisers increased spending by 125% YoY to $330mm, thanks mainly to a 234% YoY increase in Q1. The following quarters increased as well, but by a much more tame 70% and 76% YoY, respectively. 

The top advertisers—Delta, Southwest, and United—spent $222mm, or 67% of the spending from the category.  

Delta

Advertisers for Delta increased spending by 265% YoY, some of which went to promote its “Faces of Travel” initiative that aimed to “better reflect the diverse customers we see on our planes every day.” 

In tandem with the campaign, Delta partnered with IBM to “identify unconscious bias in our advertising.” The similarity of these initiatives speaks to the company’s positioning and the messaging it’ll likely use throughout its campaigns in 2023.

Delta is also making a concerted effort to go after “premium travelers,” which will undoubtedly impact the ad formats and inventory advertisers turn to in 2023.

United 

Advertisers for United one-upped their Delta counterparts, increasing spending by 304% YoY. 

Earlier this year, they launched a new campaign, “Good Leads the Way,” which puts sustainability at the heart of the brand. 

United is also shifting “its advertising calendar to be more flexible with both media and message.” 

Maggie Schmerin, United’s managing director and head of global advertising and social media, said the new message aimed to answer questions like, “Is this a campaign that another airline can easily come in and put their logo on top of?”

United’s push to be different and “elevate United beyond aviation” will likely impact its strategy and could force advertisers to reallocate dollars to less frequented ecosystems where they can stand out.   

Travel Ad Spend Will (Maybe) Soar in 2023

Global tourism arrivals are expected to rise by 30% in 2023, following a 60% increase this year.

While we’re not quite back to pre-pandemic levels, we’re getting there, and advertisers from the travel industry know this. Spending in 2023 should follow suit.

That said, uncertainty persists. 

Between the continued economic slowdown, looming COVID concerns, and instability overseas, travel advertisers could backpedal in the blink of an eye. 

For more insights, sign up for MediaRadar’s blog here.

On June 1, 2022, 1.9mm people went through TSA, which is in line with pre-pandemic numbers. 

Travelers aren’t the only ones excited, though. 

Advertisers in the travel industry, including U.S Tourism, Rental Car, Lodging and Airlines, are looking forward to clawing back some of the $2 trillion in lost revenue last year. 

We dove into our data to look at how these advertisers are heating up as we approach the historically busy summer travel season and what the insights can potentially tell us about their future advertising strategies.

Most Travel Advertisers Are Back

Through April of this year, travel advertisers have spent nearly $623mm, representing a 43% YoY increase from the same period in 2021 and 98% of what they spent in Q1 2020. 

Those numbers alone are leading indicators that travel advertisers are back, but what’s even more telling is that the increased spending came despite COVID-19 cases skyrocketing during January and February. 

While advertisers are at the whim of mandates, and the circumstances that influence their spending are mostly out of their control, their perseverance during Q1’s surge should be all the proof you need that travel advertisers are back—at least most of them. 

Despite the travel rush, ads from airlines and car rental companies have been largely absent.

For airline advertisers, the lack of spending—although they did spend a lot in February—is likely a result of the existing uncertainties surrounding air travel and the industry’s unstable infrastructure. As the industry solidifies, expect ad spending to increase.

The outlook of their car-rental colleagues isn’t so promising. 

With gas prices at record highs and showing no signs of dropping, fewer people will be hitting the road, giving these advertisers no reason to open their wallets.

No Vacancies for Lodging Advertisers

While travel advertisers are collectively cheering, one category is taking it to another level: Lodging.

Although the industry spent nearly $623mm on ads through April, half came from advertisers in the Lodging category. 

A layer deeper, 64% of the ads bought by Lodging advertisers came from 6 companies, including Airbnb, Expedia (Vrbo), Hard Rock Entertainment (The Guitar Hotel), Hilton, Marriott, and Unique Travel Corp (Sandals Resorts). 

For Airbnb, the spending was undoubtedly an effort to promote a redesign that includes new features—such as a search tool in which users can sort listings into categories, and a new way to split time between two properties. 

For Expedia (Vrbo), the ads are one way to keep Airbnb at bay.

But for Hard Rock Entertainment, Hilton, Marriott and Unique Travel Corp, the big bucks are coming at an inflection point for the industry. 

The vacation rental market continues to grow—revenue is expected to reach $81b this year and is predicted to grow at an annual rate (CAGR 2022-2026) of 7.29%.

While that pales in comparison to the hotel and resort sector’s market size, which peaked at $1.5t in 2019, there’s no doubt that giants like Hard Rock Entertainment, Hilton, Marriott and Unique Travel Corp recognize the shifting sands.

Their ad spend is proof of that.

Have Traditional Ads Overstayed Their Welcome?

For better or worse, there are times when circumstances outside of our control force us to change. 

At first glance, that appears to be happening to how Lodging advertisers look at TV and Print ads.

Through April 2020, TV comprised 46% of their spending while 34% went to Print. 

But during the first few months of 2021, TV spending dropped to 27% while Print fell to 14%. 

Video ads were the beneficiary, increasing from 3% to 42% of total spending through April 2020 and 2021, respectively. 

The decrease in spending on TV and print and the increase in video spending would lead one to believe that these advertisers are modernizing their strategies, but that may not be the case. 

Through April of this year, they’re back to where they started. TV accounts for nearly half of the ad buys, making it look like the increase in video spending was just an attempt to take advantage of the increased consumption of video during the pandemic. 

Still, this move may be telling. 

While this may seem like a regression, if we look at traditional spending so far in 2022, we see that it’s fallen from 80% of total spending through April 2020 to 65% of total spending through April of this year.

The quick decrease in traditional spending could indicate that some of these advertisers experienced success during their brief foray into digital formats.

If that’s the case, expect spending on formats like video, Facebook and display to increase as we move through 2022. 

OTT and Native Advertising Check In

Through April 2022, OTT and native ads represented just 2% and 1% of total spending, which begs the question: Why talk about them? 

The answer: because the introduction of OTT and native ads could be the start of something new. Advertisers will likely look to take advantage of the popularity of OTT and the ability of native ads to deliver the kind of seamless experiences people are demanding from companies.

For now, these formats represent just a sliver of spending, but as OTT becomes even more popular, OTT platforms improve their ad capabilities and native ads become the norm, especially with the rise of travel media networks, the future for these two formats is bright.

It’s Full Steam Ahead for Most Travel Advertisers

After an unprecedented and unpredictable couple of years, all signs point to travel regaining its place in everyday life. 

As people pack their bags and ship out to locations near and far, advertisers will follow suit with campaigns to help them make up for the lost time. 

Lodging advertisers are already doing that.

Others, namely those working for airlines and car rental companies, are taking a more reserved approach—either by their own doing or due to forces outside their control.

Still, as the world returns to normal and more people hit the roads, travel advertisers will respond with a mix of old and new tactics aimed at eager travelers. 

Want more insight into how Travel brands are spending their ad dollars? Stay tuned for our upcoming Travel Trend Report.

Now, flights are starting to take off again. American recently announced that its July flight schedule was the strongest it’s been since March—but tickets were purchased mostly for leisure, not business. 

Events have shifted online and virtual meetings have become the norm. Without a vaccine, business travel will be slow to rebound—how are travel brands adjusting to this reality?

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

Virtual meetings reshape business travel 

A recent Uniglobe study found that virtual meetings are becoming part of the makeup of corporate life. 

Thirty percent of participants said “they expect up to 25% of their travel to move to virtual meetings even if a vaccine is broadly available,” while 26% said that number would fall between 25-50%.

More than half of respondents believed that a significant chunk of the meetings and events they previously attended would be virtual even in a post-COVID world. 

Many executives and employees have reported that video conferences are just as effective as face-to-face meetings. Plus, virtual calls reduce the travel costs and time devoted to making in-person deals. Virtual meetings may never fully replace the relationships built in person, but they are becoming more normal. 

This is likely to make executives more selective when choosing which business trips are worth the costs, including time away from family and the office. 

Travel brands are taking notices of this sweeping change.

MediaRadar data shows that, prior to the pandemic, travel brands averaged just over $275 thousand on B2B websites tailored to business travelers. Since COVID-19 began, the average weekly ad spend has fallen to under $20 thousand.

Hotels see a glimpse of recovery from domestic business meetings

Hotels are seeing glimpses of recovery among domestic travelers, especially via car-travel. Right now, traffic is mostly coming from leisure and local business travelers.

Even though the business travel sector will struggle with the lack of full-scale conferences, domestic business meetings and hybrid-events may help supplement losses. 

InterContinental Hotels Group CEO Keith Barr reported that drive-to markets are getting better every week. Similarly, Mark Hoplamazian, Hyatt Hotels Corp. president and CEO, said that the volume of planned business meetings later in the year and early next year are increasing, especially with the availability of hybrid meetings.

Over the past three weeks, hotel brands have accounted for 55% of all B2B travel advertising. During the same period last year, they accounted for only 13%.

For four consecutive weeks, the average weekly ad spend by hotel brands was two thousand dollars. Now, it is climbing back up. It spiked the week of May 24th and came back down to eleven thousand dollars the following week. 

Even though virtual meetings are effective, many business people miss the travel and in-person experience of deals and problem solving. It appears that hotels are trying to tap into that feeling—the creative across brands is positive, emphasizing wellness and lovable experiences. 

International travel will be slower to recover

The Global Business Travel Association polled members in June and found that 60% believed that employees would start traveling within the next three months. Only 24% said they thought international trips would resume during the same time frame. 

One creative solution for international business travel may be “travel bubbles,” or countries agreeing to allow certain travelers to bypass strict quarantine measures. This could require travelers to get tested for coronavirus within forty-eight hours of boarding planes and be subject to tracking. 

The details have yet to be ironed out, and other countries are nervous about the rising number of cases in the U.S.

“There’s a concern around ensuring the corridor is kept whole. If you fly into Washington, the UK and U.S. wouldn’t want you to visit New York for the day,” explains Vice President of SITA Jeremy Springall. “The risk profile of London-Washington is manageable, but if you start traveling around the U.S., it rises, so we’ll need some way of managing people’s travel once they get to the destination, to make sure this arrangement works.”

U.S. travelers are still banned from many regions, including Europe. Until there are systems, policies and technology in place, international business travel will be limited. 

For more updates like this, stay tuned. Subscribe to our blog for more updates on coronavirus and its mark on the economy.

In the latest April survey from the Tourism Crisis Management Initiative at the University of Florida, 74% of respondents said they felt anxious about travelling within the US, but despite the anxiety, people’s interest in travelling is piqued. 

“Travel is a part of our life and when we aren’t able to do it, we realize how much it plays a role in what we’re looking for in our plans and in our future free time,” explains Director Lori Pennington-Gray. “They’re looking to figure out when they can get back to doing what they want to do, whether that’s seeing the world or going to see their families.”

As the country reopens and the perception of COVID-19 changes, we may see the level of travel anxiety drop. In other countries, including Italy, domestic travel plans are already inching their way back to normal levels.

Will Americans join them? The data suggests advertisers are already counting on it.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

Will we see a domestic travel boom this summer?

We’ve been stuck at home and are itching to get out of our monotonous lives. Even though summer is typically a time when international travel peaks, travel will look different in post-quarantine times.

In countries most impacted by COVID-19, the amount of interest in international travel to and from has dropped significantly. For example, data from Sojern found that foreign searches for lodging in Spain in July are down by 94% year-over-year.  

Between uncertainty and travel restrictions, people won’t be traveling internationally. Roughly half of all countries closed their borders to tourists and by the end of April, none had lifted the restrictions put in place.  

With international restrictions still in place, we are already seeing domestic travel increase in places that were first impacted by COVID-19. China, for instance, is seeing a boost from domestic tourism.

One analysis conducted in Australia found that their regional destinations and hotels were in a good position to rebound because they will capture the redirected international traffic.

“The potential transfer of outbound visitors to domestic visitors in hotels is considerably higher than the loss of international nights across cities and regional areas,” said CEO of Dransfield Hotels Dean Dransfield. When travellers who were planning vacations abroad turn their trips inward, domestic travel could outweigh the losses of international tourism. 

Americans are behaving similarly. With limited space to roam and cabin fever, 1 in 3 Americans say they are planning a road trip this summer. Road trips will be popular because they give Americans a sense of control of where they can go and see. It feels safer in a personal car, rather than getting on an airplane or public transportation. 

MediaRadar Insights

The travel industry as a whole is hurting and their ad spend reflects that. Ad spending from the travel industry fell dramatically amid COVID-19 and remains low. 

In April, the average weekly spend was just over $5M. In January & February, that figure was at $61M (-92%). 

We see how stark the contrast isYear over year. The industry started the year off strong but beginning the week of 3/15 spend was cut dramatically. When we compare the time period of 3/15-5/9 to the year before, ad spending from the travel sector is down 87%.

Tourism within the United States has slowly crept back up from their low. In fact, every week in April we saw WoW improvement in ad spending, going from 280k in the first week of the month to $768k in the last week (+174%). 

By the week of May 17th, spend was back over $1.5M. Despite this positive momentum, spend remains down from last year by over 50%.

In recent weeks, we’ve seen new advertising pushes from brands like:

• Visit California 
• Las Vegas Convention & Visitors Authority
• The Florida Keys & Key West

Las Vegas has recently put dollars behind this ad, running it on TV networks like NBC, CBS, Bravo and E!.

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