Influencers and social commerce in travel

The goal of travel industry marketers has always been to build efficient direct-to-consumer relationships by cost-effectively expanding brand reach, enhancing traveler engagement and maximizing customer lifetime value. 

Data privacy regulation (e.g., the impending demise of third-party cookies) is disrupting digital advertising by impairing the relevance of important targeting data, which will further elevate the importance of direct consumer relationships. 

Travel brands, particularly hoteliers, compete with online travel agencies (OTAs) that transact approximately 50% of online hotel bookings in the United States.

Accommodation bookings also generate the lion’s share of OTA profitability. In the highly fragmented tours and activities space, 52% of bookings are through intermediary channels with only about 25% of bookings currently processed online. 

The confluence of these forces creates a catalyst to engage directly with consumers through social commerce – a rapidly growing sector where travel currently lags.

According to one projection, U.S. social commerce will more than double from $37 billion in 2021 to $80 billion in 2025, growing its share of total e-commerce sales to 5.2%.

This preview looks at how social marketing has evolved, how consumers interact with brands and nuanced differences for travel.