Skift Travel News Blog

Snap claimed Etihad trimmed its “costs per flight search” four-fold using Snap’s new dynamic travel ads, which is now rolled out globally.

This ad format, according to Snap, is a travel category expansion that enables advertisers, including airlines, hotels, destinations and tour operators, to engage in advanced audience targeting based on a Snapchatter’s travel intent and backed by local relevance.”

“With travel demand seeing a continued strong recovery in Q1 2022, we were of course keen to capitalize by converting existing customers and, importantly, acquiring new ones,” Phil Dodwell, who heads marketing at Etihad, said in a statement. “However, the marketplace for air travel remains highly competitive so ensuring relevance is key.”

He said the airline will be continuing to use Snap’s dynamic travel ads in the second quarter, and particularly likes the format’s prospecting capabilities.

Snap’s prime users are Gen Zers and Millennials.

Just look at their market caps — Booking Holdings $92.05 billion and Airbnb a humbling $77.8 billion.

The Wall Street Journal reported Sunday that Booking’s share price has notched “single-digit gains” over the last six months, while “Airbnb’s shares have lost nearly a third of their value.”

Reporter Laura Forman attributes some of the discrepancy to the comeback and relative affordability of urban hotels versus soaring rates for short-term rentals.

Not to mention, we’d point out, seeming out-of-control cleaning fees with little rationale for the heft of the cost.

Airbnb’s average daily rates climbed 37 percent in the first quarter when measured against the first quarter of pre-pandemic 2019, according to the Wall Street Journal. Citing STR data, the story said average rates for urban hotels around the world in April haven’t yet inched back to pre-Covid levels, while the average price of a room night for hotels as a whole has risen less than 15 percent in April compared to the same period three years ago.

Of course, as the story notes, Airbnb has the brand advantage over Booking.com as Airbnb spent less than a quarter of its revenue on sales and marketing in the first quarter of 2022 while Booking shelled out more than half its revenue on sales, marketing and related expenses.

Still, there’s a reason that Booking.com spends so much on performance marketing on Google even as Airbnb has reduced the percentage of revenue it spends on marketing on Google and elsewhere since 2020. The reason Booking.com spends so much? It seemingly is working.

The Wall Street Journal cited Sensor Tower data tallying Booking.com’s app installs in April as being 13 percent higher than in January 2020 while Airbnb’s app downloads fell 12 percent in the same timeframe.

“Ironically, Booking has managed to reinvigorate interest in its namesake brand this year by promoting its tired image,” the Wall Street Journal said. “A Super Bowl commercial for Booking.com featured The Wire star Idris Elba mocking the brand as having ‘never been accused of being sexy, flash or lit,’ unless, he adds, ‘we’re talking literal.'”

We’re unsure how much weight to give to Booking’s Super Bowl ad — which seemed to underwhelm — in its app download number uplift.

The signs of life in Booking’s stock price compared with six months ago has a lot to do with the comeback of cities, the reopening of Europe, where Amsterdam-based Booking.com has most of its strength, and the relative affordability of hotels.

After all, while some people wrote off cities during the pandemic as being permanently scarred, Booking’s Glenn Fogel argued — as did Peter Kern of Expedia Group and Steve Kaufer of Tripadvisor — that urban hotels and cities would be back. It appears as though that’s starting to take shape.

Airbnb shelved its huge $800 millions marketing budget when the pandemic hit. Now as a company not just recovered but thriving, it has brought all its marketing, advertising and creative in-house, and the team is now numbering in hundreds, according to Airbnb’s global head of marketing Hiroki Asai, in an interview with Digiday.

From the Digiday story:

Is the in-house team still responsible for the creative? What about media? 

It’s all done in-house. All of our creative, all of our marketing, all of our design, it’s all done in-house. In total it’s a few hundred people. We work with an agency to buy the media. Strategy and execution is all done internally. Creative is done internally, production is done internally.

We’ve heard that some companies have been taking more of a hybrid approach to in-housing media recently, working on strategy in-house and an agency to execute. That seems to be the approach you’re taking.  

It makes a lot more sense. With something as specialized as media buying when it’s all about scale, [and] connections, it doesn’t make sense to build that. The strategic part of it, absolutely. The planning, absolutely. For us, on the creative side, everything is internal. That’s something I’m deeply passionate about. The best way to create great work is to create it in-house. [Over the last two years,] we have built out an advertising team on top of the creative team we do have. We’ve also deeply integrated it a lot more tightly. We have our advertising team working tightly with our marketing team working tightly with our design team, product team, the whole thing is much more integrated. By integrating deeply, that allows you to create some of the stuff we launched.

United Airlines has earned a lot of goodwill in this pandemic, especially in being one of the first airlines to mandate vaccines for its employees months before a federal mandate and sticking to it despite lots of vocal backlash. Now it is launching a big new national ad campaign – “Good Leads The Way” – that tells the story of “United’s leadership in areas like customer service, diversity and sustainability, and captures the optimism fueling the airline’s large ambitions at a time of unprecedented demand in air travel,” the company said today at the launch of this campaign.

This is the first campaign with its new creative agency of record 72andSunny, and includes more than 150 different pieces of video, digital, social and out-of-home content and features more than 60 employees, it said.

Here’s how Scott Kirby, United CEO, describes the new campaign: “In the past few years, United has emerged as a force for good and an industry leader. We’re taking actions that inspire pride among our employees and customers – everything from historic investments to fight climate change and training more women and people of color to become pilots to getting rid of change fees and upgrading our fleet with 500 new planes. This campaign serves not only as an exclamation point on our recent actions, but also as a commitment to how United Airlines intends to show up in the future.”

Their main anthemic 60-second video ad, below:

Then there are shorter ads highlighting different aspects of the airline: