Influencers and Social Commerce in Travel

A preview of one of Phocuswright's Travel Innovation and Technology Trends 2023: The Future of Social Media, Influencers and Social Commerce in Travel

By Robert Cole

The goal of travel industry marketers has always been to build efficient direct-to-consumer relationships by cost-effectively expanding brand reach, enhancing traveler engagement and maximizing customer lifetime value. Data privacy regulation (e.g., the impending demise of third-party cookies) is disrupting digital advertising by impairing the relevance of important targeting data, which will further elevate the importance of direct consumer relationships. 

Travel brands, particularly hoteliers, compete with online travel agencies (OTAs) that transact approximately 50% of U.S. online hotel bookings. Accommodation bookings also generate the lion’s share of OTA profitability. In the highly fragmented tours and activities space, 52% of bookings are through intermediary channels with only about 25% of bookings currently processed online. 

The confluence of these forces creates a catalyst to engage directly with consumers through social commerce – a rapidly growing sector where travel currently lags. According to one projection, U.S. social commerce will more than double from $37 billion in 2021 to $80 billion in 2025, growing its share of total e-commerce sales to 5.2%.

This preview looks at how social marketing has evolved, how consumers interact with brands and nuanced differences for travel. Get the full report for a deep analysis of:

  • How loyalty and marketing has evolved
  • How influencers are compensated and create revenue streams
  • Lessons from fashion and beauty
  • Nuanced strategies of different travel brands
  • A breakdown of lodging affiliate programs
  • Aligning attribution with conversion
  • Capturing data while respecting the privacy of customers, influencers and brands
  • Successful travel brand advocacy platforms and campaigns
  • And much more

Get the full report The Future of Social Media, Influencers and Social Commerce in Travel here.

Social Commerce Goes Beyond Social Media Marketing 

Where traditional social media campaigns may feature links to a new product, a targeted persona landing page, a seasonal sale or special coupon code, social commerce campaigns promote specific products through deep links into specific product pages. They often offer inventory and pricing, with “buy now” as the call to action. 

Influencer-led communities epitomize democratized media. Creators are self-contained lifestyle brands primarily interested in supporting products and experiences that closely align with their lifestyles and the sensibilities of their followers. Product advocacy extends beyond the influencers through their audience.

Nuanced Differences for Travel

Followers thrive on relevance and authenticity. Just like fit is important in fashion, the “fit” of a destination, hotel or activity is just as vital to a follower when searching for trip inspiration. 

The equivalent of the try-on for travel is the site visit. Photos and videos taken on-site deliver far better engagement when compared to textual mentions associated with stock or brand-provided photos. This need for authentic social proof raises the bar considerably for travel brands when selecting influencers and planning campaigns. 

Keeping Receipts 

Social commerce connects the dots between top-of-funnel inspiration and product discovery campaigns to mid-funnel merchandising, referral and retargeting strategies, and ultimately to bottom-funnel discount and shopping cart conversion tactics. 

Big Returns From Average Visitors 

Alternate approaches can leverage social commerce by engaging regular travelers. Brand-backed content marketing efforts lack authenticity, as travelers suspect products are always portrayed under ideal, staged conditions. Instead, consumer-created content is not only distributed through the traveler’s social network, but the best submissions may be curated by the brand for use in future marketing campaigns. 

The most effective marketing strategies are informed by performance metrics that help creative teams identify new opportunities to engage consumers. 

Social Commerce and the Future of Travel

As media, finance and identity continue to evolve, the ability to accurately attribute lead sources and conversion associated with influencers, channels and promotional campaigns will be essential to optimize marketing campaign strategies and budget efficiency across every component of a travel itinerary. 

Influencer-driven social commerce represents a major opportunity for a travel industry striving to crack the code of developing direct distribution channels, nurture loyalty and improve marketing efficiency. New social platforms may rise and fall, but the key to success will be deploying broadly applicable, yet customizable marketing infrastructure that bridges campaign, booking, operations, loyalty and analytics. 

The full report contains deep analysis of:

  • How loyalty and marketing has evolved
  • How influencers are compensated and create revenue streams
  • Lessons from fashion and beauty
  • Nuanced strategies of different travel brands
  • A breakdown of lodging affiliate programs
  • Aligning attribution with conversion
  • Capturing data while respecting the privacy of customers, influencers and brands
  • Successful travel brand advocacy platforms and campaigns
  • And much more

Each year, Phocuswright's expert analysts identify the technology and innovation trends that will influence travel significantly in the coming year and beyond. This year, we’re exploring the growing roles of social media and Web3 in travel, addressing the realities of sustainability and our fragmented technology landscape, and pondering the impact of the next game-changing technologies like generative AI and eVTOLs. 

This overview article features brief introductions to the eight trends that we will cover in the coming months.

Get the full overview article here.

Watch the online event that covered each trend, presented by Phocuswright analysts:

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