Our first Update of 2022 includes a number of stories on the evolving marketing tactics of both hotels and their distribution partners. Enjoy.
Better Days Ahead? Expedia Certainly Thinks
So
("Online travel giants' marketing spend continues to
head north," January 10, 2022 via Phocus Wire)
("VIDEO: How hotel marketing tactics are shifting,"
January 12, 2022 via Phocus Wire)
Last week, two stories detail the major OTAs' apparent
spending spree on sales and marketing. What's driving this
growth? General optimism over the anticipated return of the travel
industry? Renewed efforts to defend or capture critical market
share in an increasingly competitive online market? Dogged
determination to quash hoteliers' seemingly successful direct
booking efforts – particularly over the past 18 months? Maybe
a little of all three? According to a report issued last week
by PhocusWire, most of the major online booking
channels reported huge year-over-year increases in their third
quarter sales and marketing spend. Airbnb increased its third
quarter year-over-year spend by 156 percent to a measly $291
million. Expedia Group increased its third quarter spend
year-over-year by 150 percent to a whopping $1.3 billion and
confirmed plans late last week to run Superbowl ads for both
Expedia.com and Vrbo (the first such ads by Expedia in years).
Booking Holdings increased its year-over-year spend by nearly 100
percent to a total of $1.38 billion. Bucking this trend was
China's Trip.com, whose year-over-year increase of 12 percent
was reported to be in response to continued uncertainty over the
pandemic.
Southwest Embraces Kayak's Business
Platform
("Southwest Airlines Connects to Kayak for
Business," January 12, 2022 via Business Travel
News)
It wasn't that long ago that Southwest, choosing to focus
nearly exclusively on its direct channel leisure business, wanted
nothing to do with third party distribution channels. Things have
obviously changed. Last week, Kayak announced that Southwest's
fares (including discounts and rewards bookings) would be available
on Kayak's business platform, Kayak for Business. According to
statements from Southwest, Kayak won't likely be the last
third-party channel to soon feature Southwest's fares and
itineraries.
The Top 10 Most Downloaded Travel Apps in
2021
("Google Maps Tops in 2021 as Most-Downloaded Travel
App," January 10, 2022 via Yahoo Finance - Top
Stories)
Did you make the cut? If you are a hotelier, the answer is no. How
about the list of top 10 downloaded online travel booking apps in
2021? Only online booking platform and operator, Oyo, made the list
of top 10 downloaded online travel booking apps in 2021. Both
Expedia Group and Booking Holdings fared well on the list of online
booking app downloads – taking six of the 10 positions
combined. Notably, online platform (and widely known provider of a
variety of fintech products) Hopper continued to place well on the
online travel app list, coming in third. Ever wonder what effect
the exploding marketing investments of online travel companies is
having, take a look at the two lists.
Have a great week everyone. Stay healthy.
Note, for those you venturing out again to industry events, I plan to attend the ALIS Conference in Los Angeles later this month. If you plan to be in Los Angeles, please let me know.
Other news:
Expedia Returns to Super Bowl Advertising in Sign
of Optimism for COVID-Weary Travelers
January 15, 2022 via GeekWire
Expedia Group is coming back to the Super Bowl, offering hope to
those who yearn to be back on the beach. The Seattle-based online
travel giant confirmed Friday morning that it plans to advertise
for its Expedia.com and Vrbo brands during the broadcast for Super
Bowl LVI on Sunday, Feb. 13.
Google Represents Ongoing Threat to Online Travel
Agencies, Says Globaldata
January 13, 2022 via GlobalData - All news
COVID-19 had a serious impact on online travel agencies (OTAs),
according to GlobalData, which notes that the OTA market value
decreased by a gruesome 60.4 percent year-on-year (YoY) in 2020.
The leading data and analytics company reveals that this strain has
amplified OTA's existing concerns around the growing presence
of Google in the market, and how the tech giant's control could
impact competitivity and, therefore, consumer choice.
Cvent Taps Former Military Vendor for Mtg. Health Pass
Tech
December 23, 2021 via Business Travel News
Meetings technology provider Cvent has partnered with multifactor
identity authenticator ID.me to create and offer Cvent Health Check
as a privacy-oriented health pass for meetings and events.
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