Travel Industry To Spend More on Internet Marketing in 2011
By Anna Johnson on December 22nd, 2010Travel companies are set to spend more on Internet marketing in 2011, according to the Bigmouthmedia 2011 Travel Report.
Based on Bigmouthmedia’s research – a survey of 78 travel professionals from the company’s client base, parent group LBi and the readership of Tnooz – travel companies will increase their digital marketing budgets from 56 percent of their marketing budgets in 2010 to 60 percent in 2011.
More precisely, around 85 percent of travel companies plan to increase their spend in the coming months. While the majority intend to do so by means of a direct investment, some 33 percent will take money out of other, more traditional, marketing channels.
Which kinds of travel companies will spend the most on Internet marketing in 2011?
In 2010 online travel agents (OTAs) and comparison search engines spent the most on Internet marketing (90 percent of their marketing budgets), whilst airlines and hotel companies spent the least (around 30 percent of their budgets).
Next year, OTAs will continue allocating the bulk of the marketing spend to Internet marketing. Meanwhile, airlines plan to boost their online budgets to 33 percent and hotels will increase their online marketing spend to 38 percent.
Apart from spending more on Internet marketing in 2011, the travel industry also intends to improve their measurement of online marketing initiatives. For example, in 2011, 58 percent of travel companies plan to introduce attribution modeling to calculate ROIs for their online marketing budgets.
December 28th, 2010 at 7:47 pm
Good post. Hopefully more companies will follow the example of the travel industry and increase their online marketing budgets in 2011.