TRAVEL INDUSTRY

DIGITAL TRENDS

 

  • 1 in 3 travelers (33%) are planning to spend more on travel in 2016 than they did the previous year. Among those who plan to increase their travel budget, 49% said they will do so because “because I or my family deserve it.” 31% said they would spend more on travel because “it’s important for my health and well-being.”  – Ipsos Survey for TripAdvisor
  • Multi-generational travel is projected to increase as much as 20% in 2016, as more baby-boomer grandparents plan trips for the entire family to take together.  In response, lodging facilities are creating more multi-room suites to accommodate.  Cabin and home rentals will benefit from this trend in 2016.   – Frommers
  • Direct Booking is more competitive between Hotel Brand websites and mobile (25% share) and Online Travel Agencies (Expedia, Booking.com, TripAdvisor.com — 20% share).  Hotels are winning by offering direct bookers exclusive perks, points, free wi-fi, early mobile check-in, keyless smartphone room entry, etc.) – Atmosphere Research Group

MEDIA

TRENDS

 

  • Changes in media consumption are leading some major brands to shift media budgets from TV to digital, with budget split moving from 70% TV/ 30% digital to now 50/50.  According to Under Armour’s senior vice president of brand marketing Adrienne Lofton, “The reality [now] is that the consumer is consuming around 3,000 messages a day, our research showed,” she said, “often it’s social and digital — consumers are just in a constant state of [media] consumption.”  – Business Insider
  • U.S. Digital Ad Spending will outpace TV next year.  According to a March 2016 eMarketer U.S. TV vs Digital Ad Spending report,TV and Digital ad spending is roughly 50/50 this year, with TV ad spending at $70.60 Billion and Digital at $68.82 Billion.  However, in 2017, Digital Ad Spending will outpace TV with $77.37 Billion projected ad spend for digital and $72.01 Billion Digital Ad Spend for TV.  Two-thirds of digital ad spend is for mobile.
  • Digital Advertising Budgets will need to increase 20% this year just to maintain same reach levels, due to increased pricing and decreased inventory from presidential election
  • Travel industry ad spending is expected to experience growth rates of 10% or more annually through 2017 and reach $7.27 billion by 2019. 
  • Mobile’s share of total digital ad spending in the travel industry (49% vs 51% for desktop ads) is creeping ever higher and in the future will represent a majority of the industry’s ad spending.

 

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