Social media will evolve into the key revenue generating channel for the global travel industry over the next five years at the expense of pay-per-click advertising, reveals the World Travel Market 2011 Industry Report released today (Monday 7 November).
More than 1,000 buyers from WTM’s Meridian Club and exhibitors took part in the survey, with 80% saying their businesses use social media.
By 2016 half of the travel industry will be using social media as a way of generating revenue and bookings. Currently more than one fifth (22%) use social media as revenue generating tool with a further 27% planning to do so over the next five years.
Interestingly, half of the travel industry using social media does not invest in any PPC advertising on search engines, while a further 20% admit to reducing their spend on search engines such as google and Yahoo! because of social media.
The findings shows a sea-change in the marketing spend of the travel and tourism industry. Since the internet became such a major booking channel in the late 1990s travel companies have been paying every increasing amounts of money to secure top position in the paid for listing of the search engines.
Looking ahead over the next five years, nearly half (47%) the total sample said that social media would become more important than PPC, with 37% saying that social media will grow but remain behind PPC in importance.
Only 15% thought social media had in fact reached a tipping point will be less popular in 2016 than it is today.
When asked to rank five different marketing channels, social media came out top for today and for 2016, gaining strength during the timeframe. Currently, blogs/ consumer reviews are more important than mobile, although these will swap places and strengthen by 2016. Pay per click and video are fourth and fifth this year and will keep the same positions for 2016, with both categories becoming weaker.
Reed Travel Exhibitions Director World Travel Market Fiona Jeffery said: “A successful search engine strategy has long been central to the commercial success of any travel retailer.
“The World Travel Market 2011 Industry Report’s findings demonstrate a real shift in the marketing spend of the travel industry, away from the perceived expensive PPC adverting to engaging with customers through social media.”
“It is evident that social media is a business critical platform, and while PPC will have a smaller role to play for some businesses in 2016, it is not going away.”
