OTAs hit record levels of marketing spend in 2024

As AI reshapes digital advertising, industry leaders like Booking.com, Expedia, Airbnb, and Trip.com adapt strategies to stay ahead in the evolving travel landscape

The 2024 financial reports of the major online travel agencies (OTAs) - Airbnb, Booking Holdings, Expedia Group and Trip.com Group - highlight an unprecedented $17.8 billion investment in sales and marketing, a $1 billion increase from 2023. This surge in spending underscores the intense competition among travel intermediaries as they compete with each other and direct sellers for customers. While each company has its own approach, a key theme emerging from the earnings calls is the growing role of artificial intelligence in shaping future marketing strategies.

Key takeaways

• Record marketing spending: The four largest OTAs collectively spent $17.8 billion on marketing in 2024, a significant increase from the previous year;
• Trip.com's aggressive expansion: The China-based OTA increased its marketing budget by 29% to $1.6 billion, focusing on global expansion and brand awareness. However, this growth was more moderate than the 117% increase in 2023, which was a rebound from pandemic-era cuts;
• Airbnb's consistent strategy: The company increased its marketing spend by 22% to $2.1 billion, but maintained its marketing-to-revenue ratio at 19%. Its focus remains on brand marketing rather than performance-based advertising;
• Booking Holdings leads in investment: With $7.3 billion in marketing spend (31% of revenue), Booking Holdings remains the largest spender. CEO Glenn Fogel highlighted AI's potential to transform the way travelers discover and book accommodations;
• Expedia's AI-focused approach: Expedia Group's marketing investment increased 12% to $6.8 billion. CEO Ariane Gorin emphasized the importance of adapting to AI-driven search behaviors and ensuring brand visibility in generative AI-powered search platforms;
• AI's growing influence: Both Booking Holdings and Expedia discussed how artificial intelligence and social media platforms (e.g., Meta) are reshaping marketing strategies. The shift from traditional search advertising to AI-driven search models may require an industry-wide "holistic refresh."

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