6 Digital Advertising Trends to Accelerate Travel’s Covid-19 Recovery

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6 DIGITAL ADVERTISING TRENDS TO ACCELERATE TRAVEL’S COVID-19 RECOVERY

To say that the travel industry was hit hard by the onset of the global pandemic in 2020 is an understatement. Consumer demand all but disappeared as people around the world sheltered at home and borders were shut down. At the same time, the world transitioned most facets of life into the digital realm so that consumers could continue to work, play, socialize, and shop online. But now there are signs for optimism on the horizon. As vaccination rates increase around the world and destinations begin to welcome back travelers, more travel companies are looking ahead for how they can use advertising to supercharge their recovery plans and put themselves top of mind with postpandemic consumers.

1. TRAVEL BRANDS ARE EVOLVING TO MEET THE NEEDS OF THE POST-COVID CONSUMER

Consumer trends are always in flux. But the pandemic marked a clear split in consumers’ travel habits. As the travel industry prepares for a post-pandemic recovery, travel advertisers will need to adapt their messaging in response to emerging shifts in customer mindsets, habits, needs, and expectations. One of the biggest messaging factors is around health and safety. Consider that many activities that were once standard elements of any travel experience have transformed into potential sources of concern. In addition, perceptions around inperson interactions, communal spaces, and physical amenities of travel that people have become accustomed to are suddenly considered risky. Although it’s safe to predict that these concerns will eventually diminish, the behavioral changes they’ve inspired seem likely to continue into the future. “Safety is important and one of the key factors to take into consideration going forward in the [travel] research process,” said Vladimir Ortiz, vice president
of e-commerce for Palace Resorts.

COMPASSIONATE AND CLEAR COMMUNICATIONS
CONSISTENT AND RELIABLE HEALTH AND SAFETY MESSAGING
CONSUMER FIRST, PEOPLE-CENTRIC APPROACH

2. CHANGING PRIVACY RULES ARE PUSHING ADVERTISERS INTO NEW TERRITORY

In 2021 and the near future, consumer privacy will become a growing issue for travel advertisers who seek to engage their customers and navigate a complex web of new regulatory rules created by governments and technology platforms. For most travel brands, marketing to people instead of cookies won’t mean reinventing the wheel. Travel advertisers can repurpose existing customer touchpoints to connect on consumers’ terms, providing services and collecting traveler data well within the bounds of regulatory compliance.
Examples include:

Loyalty programs
Smarter website
Contactless processes
Customer feedback
Content publishing

3. SHIFTS IN DIGITAL DISTRIBUTION MODELS WILL SHAKE UP AD STRATEGIES

Most travel advertisers were forced to drastically cut spending as the pandemic took hold last year. In a 2020 interview, Expedia chairman Berry Diller told CNBC that while Expedia spends approximately $5 billion on advertising each year, the company’s 2020 ad spend wasn’t expected to reach the $1 billion mark. Travel advertisers spent 78 percent less on national TV ads in March and April 2020 compared to the same time period in 2019, with spending declining from $318 million to $73.8 million. As this decline in spending begins to reverse in response to growing demand, travel brands across all sectors of the industry are scrutinizing the distribution and acquisition methods they use to find customers. This means the ever-evolving mix of channels and advertising strategies used to acquire bookings is once again under review as the industry looks to optimize its strategies for a new postpandemic environment.

As travel budgets return, advertisers will need to consider how these distribution shifts will impact their advertising strategies. Several approaches are gaining in popularity:

DIRECT-TO-CONSUMER
COMMISSION-BASED
METASEARCH
CONNECTED TV AND VIDEO

4. REVISED METRICS REFLECT THE CHANGING DATA LANDSCAPE

As advertisers rethink their metrics for measuring the success around conversions, clicks, and return on ad spend, some in the industry are also urging a renewed focus on experimenting with branding and awareness. “Digital branding campaigns are less expensive, more flexible, and easier to track,” said Céline Chaussegros, managing director of Europe for Sojern. “But these campaigns also require different KPIs and metrics, including customer lifetime value, advocacy, and incremental searches.”

5. COLLABORATION WILL BE CRUCIAL FOR DESTINATION MARKETERS

After a year that emphasized the importance of cooperation and community, more travel advertisers are recognizing the value of closer collaboration with their fellow tourism stakeholders. Prior to the pandemic, some destinations were disconnected from their in-market stakeholders and struggled to balance issues like resident sentiment, overtourism, and sustainability. Post-pandemic, travel and hospitality companies oriented around a single destination who used to compete for the same pool of customers with a singular message have recognized that their collective efforts can serve the greater good.

6. TRAVEL MARKETERS IMAGINE A MORE EQUITABLE AND SUSTAINABLE FUTURE

While the pandemic raged over the course of 2020, other global events were actively shaping the world as we know it. Crucial societal issues like social justice, gender and racial equity, sustainability, and climate change all gained attention while the world reeled from the impact of Covid. The importance of these deeply human values was thrown into sharp relief for consumers and companies alike, particularly in the realm of brand messaging. The travel industry in particular was forced to revisit its greater purpose: exposing people to new cultures and ideas, celebrating diversity, and bridging borders to bring people and their societies closer together through shared interests and experiences. Many have begun to relate to the lockdown months of the pandemic as a much-needed emotional reset. Consumers were able to pause the typical everyday pace of their bustling lives, to slow down and consider the real impact of travel on the planet, on communities, and on individual lives around the world. Even before Covid, the concept of stakeholder capitalism had been gaining steam as consumers voted with their dollars and actively sought to support businesses that aligned with their ideals and values.

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Source: SKIFT.COM

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