Why 65% of Travel Brands are Betting on Retention Over Reach

Around 25% of marketers cite difficulty in measuring ROI, and 21% struggle to scale their partner programs effectively. This has sparked a growing investment in technology platforms that streamline operations, providing fraud protection, unified reporting, and simplified partner payouts.

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  • Travel brands are no longer chasing quick wins. In the face of rising costs and shifting traveller mindsets, the focus is moving from splashy campaigns to meaningful engagement. 

    Loyalty, trust, and partnerships are taking centre stage as brands invest in strategies that drive lasting growth, beyond the booking, beyond the banner ad, and beyond traditional advertising.

    This transformation is reflected in a recent report by Impact.com, Beyond the Booking: Where APAC Travel Brands Are Investing for Growth. The Asia-Pacific (APAC) travel sector, once riding high on the momentum of “revenge travel” in 2023, is now navigating the fatigue of “tiredness travel.”

    Moreover, industry experts anticipate robust demand in 2025, driven by easing geopolitical tensions and renewed consumer confidence. Yet, despite these challenges, the region is expected to drive over half of global passenger growth by 2043. 

    To stay competitive, travel marketers are shifting focus to smarter, more resilient strategies, balancing acquisition with retention, and brand loyalty with innovation. According to the report, 65% of APAC travel brands are now prioritising retention, and 64% are doubling down on brand building to foster long-term profitability. 

    Strategic Partnerships and Tech Investments Take Centre Stage

    Based on surveys with 100 travel marketers in Southeast Asia and 1,200 travellers across China, Singapore, and Australia, the report reveals a clear disconnect between where marketers spend and where travellers place their trust.

    While 28% of marketers believe comparison sites and 24% believe digital ads are top discovery drivers, travellers cite review sites, online travel agents (OTAs), and word-of-mouth as their most trusted sources of inspiration. 

    Notably, only 15% of marketers are investing in affiliate or loyalty strategies, even though these are among the most trusted channels for consumers.

    Digital ads, while still prominent in budgets, are seeing diminishing returns in terms of trust. In Australia and Singapore, trust in digital ads has dropped to 18% and 27% respectively, although China remains more receptive at 56%. Instead, booking decisions are being driven by brand reputation, promotions, and online reviews. 

    For instance:

    • Singaporeans value promotions (77%) and brand trust (73%),
    • Australians prioritise reputation (74%), and
    • Chinese travellers are driven by both reputation (82%) and reviews (77%).

    Travel brands are increasingly forming strategic partnerships with OTAs (27%), affiliates (25%), and influencers (16%), leading the way. These partnerships aren’t just about visibility; they’re performance-driven and tech-enabled, offering measurable returns. 

    • For example, Virgin Australia reported a 71% revenue surge, and Skyscanner saw a 77% increase in bookings, proof that the right partnerships can be powerful engines of growth.

    However, scaling these programs isn’t without challenges. 

    Around 25% of marketers cite difficulty in measuring ROI, and 21% struggle to scale their partner programs effectively. This has sparked a growing investment in technology platforms that streamline operations, providing fraud protection, unified reporting, and simplified partner payouts.

    Trust, Tech, and Travel: The Roadmap to Winning Tomorrow’s Traveller

    Although many marketers still spend heavily on digital ads and OTA placements, things are starting to change. Consumers now trust affiliate marketing, loyalty programs, and word-of-mouth more, pushing brands to explore a wider mix of marketing strategies.

    • For example, affiliate marketing is trusted by 71% of Chinese consumers, 56% of Singaporeans, and 47% of Australians, making it one of the most credible tools for driving discovery and conversions.

    Loyalty programs, personalised offers, and social media collaborations are becoming core to customer retention. For many travel brands, repeat bookings now account for up to 50% of total revenue, a figure that highlights the growing importance of fostering long-term customer relationships.

    Looking ahead, successful travel brands will be those that localise their engagement strategies, form high-impact partnerships, and blend performance with trust. 

    As traditional advertising loses influence, the path forward lies in building authentic connections, powered by technology, fuelled by data, and grounded in what today’s travellers truly value.

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