As the world of travel begins to recover, brands must adapt to the digital landscape where 81% of travel ad spend is now concentrated (Magna Global, 2024). With the global travel market projected to reach a staggering $2.5 trillion by 2028, according to Forrester, there is an immense opportunity for advertisers to claim their share of this thriving ecosystem. But how can brands effectively navigate this evolving terrain? Let’s explore key industry insights, along with actionable strategies for advertisers in the travel space.
Is Your Brand on the Map?
The digital boom in travel is in full swing, and understanding consumer behavior is more crucial than ever. Brands that harness the right technology and insights will be able to capture high-intent travelers and ensure their place on the map.
The Rise of the Online Travel Agency (OTA)
OTAs are dominating the travel landscape, accounting for 46% of global online travel spending. To remain competitive, brands need to lean into programmatic advertising, allowing them to connect with travelers early in their journey. This not only reduces reliance on OTA commissions but also reclaims margin through smarter targeting and retargeting. Brands can engage directly with their audiences, while simultaneously building loyalty and enhancing the consumer experience.
Travelers Know What They Want
Despite economic uncertainty, consumers are prioritizing meaningful travel experiences; 27% of U.S. travelers are poised to spend more on cruises and international flights, demonstrating that travel remains a cherished priority. This resilience presents an exciting opportunity for brands to position themselves as essential parts of these consumers’ journeys.
Engaging Modern Travelers
Today’s travelers are taking charge of their plans. Searches for flights and hotel reservations are surging, indicating a stronger intent to book. As more consumers choose to self-book, there’s a golden opportunity for brands to foster loyalty through direct engagement.
Advertising Throughout the Travel Journey
It’s not enough to simply provide a service. Advertisers need to accompany travelers through every stage of their journey:
- Inspiration: With 59% of travelers open to destination ideas and actively seeking inspiration, brands have a unique opportunity to engage them early. Tapping into CTV and mobile can be pivotal in sparking this interest; CTV offers immersive visual storytelling creating emotional connections with potential destinations, while mobile allows for on-the-go discovery, driving spontaneous travel interest and encouraging more travelers to explore new possibilities.
- Research & Planning: Mobile devices are driving 68% of all online traffic to travel sites. Marketers should ensure a mobile-first approach that supports trip planning, fostering early affinity and trust with their audiences.
- Booking: Understanding booking complexity is key. While smartphones facilitate bookings, desktops are still widely used for more complicated reservations. Tailoring ad formats and targeting strategies to the user’s booking journey will enhance performance.
- Itinerary Management: With 85% of travelers using mobile devices to manage their bookings on-the-go, real-time offers during their travels create a convenient and engaging experience.
Capitalizing on Timing
Peak travel planning season sees 53% of travel ad spend occurring in the first half of the year, especially in Q2 when consumers are eagerly planning their summer getaways (Magna Global, 2024). Marketers should focus on brand-building during this peak period, transitioning to performance-driven tactics during the off-season to drive conversions.
Target High-Intent Segments
While economic concerns linger, certain segments, such as premium and international travel, continue to flourish. Advertisers should focus their efforts on these resilient segments and capitalize on the opportunity presented by rising search interest in hotel and airline reservations.
Be Part of Every Traveler’s Journey
To maximize impact in the competitive travel market, brands must own key moments across the traveler’s path to purchase. By leveraging programmatic strategies and visually engaging content early in the journey, marketers can inspire and convert high-intent audiences across CTV, mobile, and native formats.
PubMatic’s Travel Auction Packages offer curated, travel-specific inventory and omnichannel reach to connect with premium traveler segments, right when they’re ready to book.
Are you ready to elevate your travel advertising strategy? Discover how PubMatic’s Travel Auction Packages can help you connect with travelers today. Learn more here.
For a deeper look into today’s travel consumer trends, explore our full infographic.
