Will A Boost In Domestic Travel Change Tourism Advertising?
Despite widespread anxiety about traveling within the US due to COVID-19, a strong desire for domestic travel is emerging among Americans, prompting tourism advertisers to anticipate a summer boost in domestic tourism as international travel remains restricted and other countries like China and Australia experience similar shifts toward local travel.
After being cooped up at home, many Americans are dreaming of travel despite health risks. According to an April survey from the Tourism Crisis Management Initiative at the University of Florida, 74% of respondents felt anxious about traveling within the US, but interest in travel remains high.
Director Lori Pennington-Gray explains, “Travel is a part of our life and when we aren’t able to do it, we realize how much it plays a role in what we’re looking for in our plans and in our future free time.” People are eager to return to travel, whether to see the world or visit family.
As the country reopens and perceptions of COVID-19 change, travel anxiety may decrease. In countries like Italy, domestic travel plans are already returning to normal levels. Data suggests that advertisers are anticipating a similar trend in the US.
Will we see a domestic travel boom this summer?
After months at home, people are eager to break out of their routines. While summer is usually a peak time for international travel, the landscape is different post-quarantine.
In countries heavily impacted by COVID-19, interest in international travel has dropped significantly. For example, foreign searches for lodging in Spain in July are down by 94% year-over-year. With ongoing uncertainty and travel restrictions, international travel is limited. Roughly half of all countries closed their borders to tourists, and by the end of April, none had lifted these restrictions.
With international restrictions in place, domestic travel is increasing in countries first impacted by COVID-19. China, for example, is seeing a boost from domestic tourism. In Australia, regional destinations and hotels are positioned to rebound by capturing redirected international traffic. Dean Dransfield, CEO of Dransfield Hotels, notes that the potential transfer of outbound visitors to domestic visitors in hotels could outweigh the loss of international tourism.
Americans are showing similar behavior. About 1 in 3 Americans plan to take a road trip this summer. Road trips are popular because they offer a sense of control and safety compared to air or public transportation.
MediaRadar Insights
The travel industry has been significantly impacted, as reflected in advertising spend. Ad spending from the travel industry fell dramatically amid COVID-19 and remains low. In April, the average weekly spend was just over $5 million, compared to $61 million in January and February—a 92% decrease.
Year over year, the contrast is stark. The industry started the year strong, but beginning the week of March 15, spending was cut dramatically. Comparing March 15–May 9 to the previous year, ad spending from the travel sector is down 87%.
Tourism within the United States has slowly increased from its low point. Each week in April saw week-over-week improvement in ad spending, rising from $280,000 in the first week to $768,000 in the last week—a 174% increase. By the week of May 17, spending was back over $1.5 million. Despite this positive momentum, spending remains down from last year by over 50%.
In recent weeks, new advertising pushes have come from brands such as:
- Visit California
- Las Vegas Convention & Visitors Authority
- The Florida Keys & Key West
Las Vegas, for example, has launched new ads on TV networks like NBC, CBS, Bravo, and E!.
For more updates like this, stay tuned for further insights on how coronavirus continues to impact the economy.
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