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Major onlineโ travel โฃagencies (OTAs) areโ intensifyingโ their investments in social mediaโฃ platforms like TikTok and artificial intelligenceโฃ (AI)-powered search as combined marketing โexpenditures for the second quarter of 2025 reached $5 billion. This strategic โขpivot reflects a broader effort to โฃdiversify โmarketing channels and capitalizeโค on emerging โคtechnologies to attract travelers.
The move comes as customary โฃperformance marketing,while still โeffective,facesโ increasing competition. OTAs are โseeking more efficient โand qualified leads through innovative channels, betting that social media engagement and AI-driven personalization will deliver higher conversionโ rates โandโ improved marketing leverage. This shift impacts โtravelersโค by potentially exposing them to more targeted and relevant travelโ offers, while also influencing โhow they discover and book their trips.
Booking Holdings recently announced a partnershipโ with TikTok, enabling โin-app hotel bookings. This collaboration represents โa significant step towardsโข integrating travel โbooking directly into social media experiences. The company increased overall marketingโค spend to $2.1โ billion in โQ2,up fromโฃ $1.9 billion in Q2 2024, but CFO Ewout Steenbergen noted โขthat the spend as aโ percentage of gross bookings improved โฃdue to โฃlower โbrand โmarketing expenses and a higher directโ mix, partially โฃoffset by โincreased social media investment.
Booking Holdingsโ President andโ CEO Glenn Fogel acknowledged the continued strengthโ of performance marketing, especially Google clicks, โขbut โemphasized the importanceโ of diversification. We want to continue to โdiversify our performance marketing channels to other channels โlike we are doing with social media,
Fogel stated.
AI’s โRising Influence
The discussion around generative AI tookโ center stage duringโ Expedia Group‘s Q2 earnings call. CEO Ariane Gorin reported that traffic originating from generativeโ AI searches, whileโ currently โsmall, is growing rapidlyโ and converting into bookings at higherโค rates than otherโค traffic.
She also highlightedโ the superior qualification of leads generated through AI searches.
Expedia Group is actively collaborating withโฃ AI โcompanies like OpenAI and Google to ensure brand visibility within these emerging platforms. Now we’re โdoing a lot of workโ with these AI companiesโฆto โmake sureโข thatโ when travelersโฃ are in โฃtheirโฃ worlds thatโ our brands are showing โขupโข well. โThere’s tech work, there’s โmarketing work, there’s integration โขwork that needs โฃto happen to make that happen,
Gorin explained. The company’s marketing โspendโข increased โto $1.9 billion in the quarter, upโ from โ$1.8 billion year-over-year.
Gorin also indicated a need for enhancement โคin direct marketing spend but โanticipatesโฃ improved marketing leverage
as โproduct enhancements drive direct business and customer retention. โขShe affirmed that AI is a key enabler of productivity andโค effectiveness.
Keyโ Data: Q2 โคMarketingโข Spend
| Company | Q2 Marketing Spend (USD Billions) | Year-over-Year Change |
|---|---|---|
| Booking Holdings | 2.1 | +10.5% |
| Expedia Group | 1.9 | +5.6% |
| Trip.com Group | 0.464 | +30% |
| Total | 4.464 | N/A |
Trip.com Group also increased its sales and marketing expenses,โ reaching $464 โฃmillion, a 30% year-over-year โincrease. This rise is attributed to marketing and promotional investments supporting โinternational expansion. the company furthered its AI initiatives with the launch โคof Trip.Planner, an AI-powered travel planning tool.
Did You know? โ
Traffic from generative AI searches isโข converting into bookings at a higher rate than traditional traffic sources, according to Expedia Group.
Pro Tip:
Travelers can expect to see moreโ personalized travel offers and integrated booking โคexperiencesโ within social media platforms as OTAs ramp upโข their investments in these โขchannels.
Whatโข impact will AI-powered travel planning โคtools have on the role of traditional travel agents?
How will OTAs balance investment in emerging channels like TikTok โขwithโ maintaining their existing marketing strategies?
Background: The Evolving OTA Landscape
Onlineโค Travel โAgencies โ(OTAs) โhaveโ historically โrelied heavily on search engine marketing (SEM) andโค brand advertising to drive traffic โขand bookings. โขThough, increasing โcompetition and the rising cost of advertisingโค have prompted them to explore alternative channels. Social media offersโ a unique opportunity to engage withโ potential travelers โdirectly โand build brand loyalty. AI, meanwhile, promises โto enhance personalization, improve search relevance, and streamline the booking process.
Frequently โคAsked Questions
Q: What isโฃ an OTA?
โค A: An โOnline โTravel Agency (OTA)โฃ is a โคwebsite or platformโ that sells travel products, such as flights, hotels, and rental cars, directly to consumers.
Q: Why are OTAs investing in TikTok?
A: TikTok offers a โlargeโ and engaged audience, particularly among younger travelers, providing a โขvaluable platform for reaching potential customers.
Q: How is AI changing travelโฃ booking?
A:โ AI is being used to personalize search results, recommend โขrelevant travel โoptions, and automate the booking process, making it more efficient for โฃtravelers.
Q: What โฃisโ generative AI?
โฃA: Generative AI refersโ to artificial intelligence systems capable โฃof โคproducing new content, such as text, images, โคor โcode, in response to โฃprompts.
Q: What is Trip.Planner?
โ A: Trip.Planner is an โฃAI-powered travel planningโ tool launched by Trip.comโ Group designed to assist โusers in creating โขpersonalized travel itineraries.
Enjoyedโค this article? Share it with yourโ network and join the conversation below! We’d loveโ to hear your thoughts on the future of travel booking.
