Travel advertising market to grow to USD 15 billion by 2032: FMI Report

Rising popularity of global content & cultural integration key factors, says Future Market Insights
/ New Delhi
Travel advertising market to grow to USD 15 billion by 2032: FMI Report

The report by FMI adds that travel advertisement market is forecasted to grow at a consistent growth rate during the forecast period

With increasing number of tourism boards around the world turning to advertising, the global travel advertisement market is set to grow rapidly in the coming decade, says a report by Future Market Insights.
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The travel advertisement market is poised to reach a valuation of USD 9.7 billion in 2022. Sales are projected to increase at about 9 pc on Compounded Annual Growth Rate (CAGR) basis and the total market size expected to reach USD 15 billion by 2032. These are the key findings of a report by Future Market Insights, a global markets consultancy.

The report by FMI adds that travel advertisement market is forecasted to grow at a consistent growth rate during the forecast period. This is majorly attributed to the growing popularity of global content and the trend of cultural integration. People interested in understanding culture from different regions and experiencing them are likely to visit these places. The natural beauty and the landscapes around the regions are attracting adventure seeking tourists and nature lovers.

Overall, the travel advertisement is attracting more and more tourists each year and make them come back for experiencing more. the services provided by local businesses and the tour companies are leaving positive impression on tourists about the travel advertisement market, says the FMI report.

In terms of regions, the report says that North America, Europe and Asia Pacific regions hold a market share of about 27 pc, 24 pc and 20 pc respectively. Collectively, they take 71 pc of the chunk, the report concludes.

Despite the rise in online advertising, print advertisements through brochures, newspapers and magazines are the key marketing means for tourism advertisements.

‘‘Tourism commercials are luring travellers to well-known locations around the globe, and advertising firms are adjusting to the sector’s evolving needs,” says FMI in the report.

Impact of Covid-19

The report says that the advertisements are one of the ways many countries are using to bring tourism back after almost three-year-long break imposed by the coronavirus pandemic. FMI says that tourism is one of the significant sectors, impacting world’s economy and many countries depend upon tourism as a primary economic source. The local livelihood and businesses as well as general development of these countries are depending on foreign exchanges during tourism. In 2019, the tourism industry was in disarray when the Covid-19 pandemic was declared and a global lockdown began.

Most of the direct jobs depending upon tourism were in danger, countries with tourism as leading economic sector were vulnerable. The island countries and less developed countries also suffered a lots of loss during lockdown, says FMI, adding that as tourism was the main source of funds, the funding to the tourist’s places and conserved sanctuaries were reduced. Many local heritage festivals and tourist gatherings were postponed or cancelled, leading to no business of local and ethnic artifacts, generating income for indigenous people.

Tourism advertisement organisations were inactive, as there were no tours during lockdown period. Currently, as the tourism sector is gaining its pace back, the advertising and marketing firms are prepared with new tactics and planning for the developing tourism industry.

The report says that travel advertising market was in a good shape in 2019, and digital and online travel advertising were the top advertisement methods used by top travel agencies. These type of advertisements helped attracting more travelers to the agencies, and also helped in pitching in new offers and tour packages by creative content.

Use of social media to boost advertising

FMI says that the tourism industry and the advertising for travel have been boosted by the growth in social media and digital communication as social media and digital platforms are the biggest hits in market sectors.  By using the influence of these platforms, any organization can promote themselves or any other brand. Simple methods like short videos and posters can be used effectively as quick infomercials. Showing glimpse of the destinations and highlighting the main attractions will get target audience curious and they will search for specific tour or tour provider. Some big spenders also collaborate with influencers to pitch their adverts and attract customers to them. These are some of the most commonly used advertising methods for marketing and advertising the tours by tourism agencies, says FMI.

It adds that the rising use of artificial intelligence is common trend for many big players. The AI chat bots are used by many organisations, as it is an easy way of interacting with costumers and getting them on right track while searching through the website. The AI chat bots are programmed according to the need of the organisation and it develops basic questions and responses. By interacting with this chat bot, customer will either get perfect answer for their query, or will choose to speak with the operator or helpline. The chat bot also learns new facts, according to the responses by the customers.

There are also softwares, collecting data from journeys of tourists and making a list of preferences and choices made by tourists. This data is then processed and again recommended to next consumer in future, who is experiencing same problems or going through same situation. These types of constantly changing aspects undoubtedly enhance client experiences and assist them in solving the issue without difficulty, it adds.

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