U.S. travel booking firms are spending heavily on marketing to get more people to book flights and accommodation on their apps and websites as they look to make the most of a post-pandemic boom in tourism during the upcoming summer season.
After becoming one of the biggest victims of the health crisis, companies including Airbnb Inc (ABNB.O), Booking Holdings Inc (BKNG.O), Expedia Group Inc (EXPE.O) and Tripadvisor Inc (TRIP.O) have quickly turned a corner due to unprecedented demand for travel from pandemic-weary Americans.
About six in 10 Americans have made plans to do at least one summer trip this year, according to monthly data from non-profit firm U.S. Travel Association released in April.
“This could be the biggest summer of travel in our lifetime and the last thing anyone would want to do is miss out,” Bernstein analyst Richard Clarke told Reuters.
The U.S. travel industry is expected to spend 14.2%, or about $4 billion, of their marketing budget this year for digital advertising, according to market research firm Insider Intelligence.
Although the boost in spending is expected to create a dent in profits in the short-term, benefits from the effort may far outweigh costs in the coming years, as travel demand is only set to soar.
Read the full article at reuters.com
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