WHAT’S TRENDING… AND OUR TAKE ON IT
TREND: TRAVEL RESEARCHERS – More than 140 million people (64.5% of internet users) researched travel online this year. More than 80% (113 million people) used a mobile device. Of travel researchers using a mobile device, 90% used a Smartphone and 64% used a tablet device, indicating the multiple uses of both mobile devices. –eMarketer, June 2017
USDM Take-Away: Travel marketers must make sure their web sites and any booking technology are updated to be mobile compliant across multiple devices. Additionally, increased mobile advertising expenditures and re-engagement tactics would reach more of your target market when and where they are researching.
TREND: TRAVEL BOOKERS – More than 116 million people (53.5% of internet users) booked travel online this year. Almost 62% of these (71 million people) used a mobile device. Of travel bookers using a mobile device, 81% used a Smartphone and 54% used a tablet device.
USDM Take-Away: As the travel and tourism industry continues to court the massive shift to predominant Millennial travelers who greatly value experiences over possessions, AR and VR offerings will deliver significant exposure, engagement, and revenue.
TREND: Airbnb is now drawing more traffic than any other hotel brand or metasearch site. In Q1 2017, Airbnb drew 106.9 million visits to its site, an increase of 31% from 2016. That was more than metasearch sites Booking.com, which is owned by Priceline Group, as well as Expedia-owned Hotels.com. Airbnb is also outpacing the sites of hotel brands like Marriott and Hilton.
More hotel professionals are increasing their 2017 budgets for digital marketing and social media strategy in a bid to grow consumer awareness and attract more guests, according to a January 2017 survey. One reason hotel professionals are doubling down on digital marketing and social is the growing market power of accommodations upstart Airbnb. Hotel operators must also compete with the deep pockets of online travel agencies Priceline and Expedia.
Digital ad spending to surpass TV in 2017, with a significant gap of almost 50% by 2021. US digital advertising spend is expected to hit $86.4 billion in 2017, overtaking television advertising at $71 billion. The digital advertising market will hit $116.2 billion in 2021, compared with TV’s $75.2 billion. – PricewaterhouseCooper
USDM Take-Away: Increased competition is eroding market share and revenues for those hospitality marketers that have not yet raised their digital marketing budgets. If you need to shift media dollars, budgets allotted to television, magazine, newspaper, and radio might be better spent on mobile advertising and social media marketing.
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