Customised marketing strategies define growth of travel industry

Customised marketing strategies define growth of travel industry

The travel advertising industry is projected to reach $15 billion by 2032, with ad investments expected to grow by 7.5% this year alone. To stand out in a competitive landscape marked by evolving consumer behavior, savvy marketers need new ways to optimize their ad spend and maximize returns on investment.

Airports, hospitality establishments, convention centers and brands can all harness aviation data insights to allocate ad spend strategically, driving results and achieving their marketing objectives.

As the phenomenon of “revenge travel” wanes, a new era of prioritizing travel may be emerging. Consumers are exhibiting a sustained interest in travel, and for many, this may be shifting from reactionary impulse to a redefined priority. In a key signal that consumers place high value on vacation and exploration, travel has held a consistent share of enthusiasm for in destination activities, growing interest in more diverse destinations and the return of baby boomers in greater numbers add to positive indicators for travel. And workplace flexibility appears poised to further buoy the demand.

Despite this optimistic outlook, an economic downturn could lead to more conservative travel behaviors, particularly among lower-income groups. Travel frequency and certain indulgences may see a decline. At the same time, if higher-income groups are relatively insulated from economic headwinds, higher-end travel products could have a better year than budget ones. On the corporate side, many decision-makers in the coming year will seek a delicate balance between conservative budgeting and pursuing the strategic benefits that travel can support.

This year travel providers could see significant fluctuations in demand for different products and amenities. Those that can apply technology to surface personalized and flexible offerings stand to make the most of the coming year and travel’s position as a widely cherished experience.

Airports churn through visitors at a breakneck pace. Passenger numbers are expected to reach 9.4 billion by 2024 and a global JCDecaux study found that airport advertising ranks highest for perceived value for brands compared to other media. It’s not surprising since airports have multiple touchpoints to reach audiences, like baggage claim displays, airport lounge TV screens, restaurant and store signage, and more with few other distractions. Furthermore, 70% of air travelers are browsing stands, shops and ads in the airport, while 77% have acted on an airport ad, either during their trip or after it. These ads are becoming available through programmatic platforms, or demand-side platforms (DSPs), that automate the process of buying and placing ads. With programmatic platforms, advertisers can customize their ads to fit the current situation, like displaying ads based on real-time flight information, weather conditions or ongoing events. This allows for more targeted and relevant advertising for a broad range of airport audiences.

It’s clear that brands that get it right will capture the attention of these travellers and leave a lasting impression. For example, an international travel retailer can integrate flight data into their ad spend strategy at airports to gain a clearer understanding of peak times and passenger behaviours between various hubs around the world. Using this insight, they can plan promotions and staffing more effectively and capitalize on delays by targeting passengers with relevant offers. Similarly, luxury brands like Chanel and Valentino may target high-end travellers on premium flights, while coffee chains like Starbucks may focus on reaching passengers embarking on long hauls or red eyes.

Hotels can also craft targeted advertising campaigns customized to the needs and preferences of guests from different feeder markets based on the seat class. For example, upon noticing an uptick in large groups traveling for leisure from a cold to warm destination, the hotel can design packages highlighting outdoor group attractions like jet skiing to woo this demographic.

Similarly, if there’s a surge in business travellers from a major metropolitan area following the introduction of a new flight connection, the hotel can offer corporate discounts or tailored amenities to cater to their needs. This strategic alignment of marketing efforts with aviation data enables hotels to maximize the effectiveness of their campaigns and attract guests from key feeder markets, ultimately driving bookings and revenue growth.

Convention and Visitors Bureaus (CVBs) are highly skilled at crafting marketing strategies to attract visitors to a particular destination. There is no denying that aviation data is the key to giving CVBs real-time insights into travel trends and patterns, allowing them to tailor their campaigns effectively.

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