Travel Giants Push AI and Social in $4.5B Q1 Blitz

In the first quarter of 2025, the four largest online travel agencies—Airbnb, Booking Holdings, Expedia Group, and Trip.com Group—collectively poured $4.5 billion into marketing. This aggressive spend reflects both the rising competition and the push to diversify marketing channels beyond traditional search, especially Google.

Booking Holdings led the pack with nearly $1.8 billion in marketing spend, a 10% increase year-over-year. Its marketing intensity rose to 3.8% of gross bookings. CFO Ewout Steenbergen reported a growing mix of direct B2C bookings, climbing from the low-60% range last year to the mid-60% range now, with continued gains expected in 2025. He highlighted improved ROI in social channels and enhanced performance in traditional ones. CEO Glenn Fogel acknowledged that while direct bookings will grow, full reliance on them isn’t feasible due to continual new customer acquisition needs.

Expedia Group’s spend also rose 6% to $1.76 billion, as it ramped up social strategies. The company debuted Trip Matching, an AI-powered tool launched via early access on Instagram. This new feature allows users to create and book itineraries based on Instagram Reels, aiming to re-engage travelers with the Expedia brand. CEO Ariane Gorin stressed the importance of presence in evolving AI-driven search behaviors, referencing integrations with ChatGPT and other agentic platforms.

Airbnb invested $563 million in Q1, up 9.5% from the prior year, as it broadens its global footprint and revamps its Experiences product. The company’s latest television campaign aligns with its product relaunch. CFO Ellie Mertz emphasized a more localized marketing strategy in underpenetrated regions. Airbnb’s expansion markets—including Spain, Germany, Mexico, and key Asian countries—outpaced core market growth for the fifth straight quarter. CEO Brian Chesky confirmed Airbnb will intensify efforts internationally to reignite double-digit growth.

Trip.com Group marked the largest relative increase, boosting marketing spend by 30% to $413 million. The China-based OTA has ramped up outreach following the end of pandemic restrictions, particularly targeting the “silver generation”—travelers over 60. The company launched short-form drama content to connect with this audience, underscoring its demographic-specific marketing approach.

Across the board, these online travel giants are increasing their marketing budgets while pivoting towards AI tools and social media to improve targeting, efficiency, and brand engagement. The shift suggests a future where inspiration, planning, and booking are seamlessly integrated across AI-powered and socially-driven platforms—reducing the industry’s dependence on traditional search advertising while pursuing deeper customer relationships globally.

Tags: phocuswire, SyndicEx250629B

Travel Giants Push AI and Social in $4.5B Q1 Blitz

Related Posts