SINGAPORE, 23 November 2023: This week, Sojern, a digital marketing platform for travel, launched its “State of Destination Marketing” report for destination marketing organisations (DMOs). 

This first-of-its-kind report, produced through a partnership between Sojern and Digital Tourism Think Tank (DTTT) and supported by Brand USA, Destination Canada and the European Travel Commission, the study sheds light on the latest industry trends and challenges.

It explores effective marketing strategies for engaging travellers based on insights from nearly 300 DMOs, government departments and affiliated tourism entities worldwide. It offers a glimpse into the future of destination marketing. 

Sojern says it “commissioned this report to ensure its global destination clients have access to the most comprehensive marketing insights.”

Report takeaways

Economic uncertainty, inflation, and the cost of living: They significantly impact strategies, with more than 50% of respondents considering these areas require careful attention and planning. 

“As the travel industry undergoes rapid transformation, we remain committed to empowering destinations to navigate these changes effectively,” said Sojern Chief Revenue Officer Noreen Henry.

“The insights uncovered in our report highlight destination marketers’ strategic priorities and overall approach to digital marketing while also highlighting the significance of promoting sustainable and diverse tourism and meeting consumers’ increasing desire for unique experiences. Working with strategic technology-powered partners like Sojern ensures success in an increasingly dynamic and competitive environment.”

AI is revolutionising marketing:  This will significantly influence how destinations market to travellers. According to the findings, DMOs anticipate AI’s impact will be most pronounced in content creation, with nearly half (49%) foreseeing significant impact. Many AI tools are transforming creative processes, from long-form content to social media posts.

In addition, 40% of DMOs see significant potential in AI for predictive analysis and forecasting, 38% for data analysis and interpretation, and 37% for marketing content personalisation. However, 71% are less confident and see little potential impact in AI’s ability to shape their teams’ web, app and platform creation, and 63% in conversational marketing. DMOs perceive the least impact when it comes to AI on campaign creation and optimisation (29%), creative media (25%) and web, app, and platform creation (25%).

Prioritising digital paid media investments: 96% of DMOs invest significantly in paid media to achieve their marketing objectives. Notably, 58% take an always-on approach, investing year-round, while 38% invest seasonally, and only 21% invest when specific opportunities arise. Social media advertising maintains its prominence, as does Search Engine Marketing (SEM), with 96% and 95% of DMOs rating them as having a high or average importance, respectively.

The most important channel formats comprise 94% native advertising or sponsored content, 85% display and video advertising, and 78% in-stream video ads. Additionally, Connected TV (CTV) shows promise, with more than half of respondents considering it of mid to high importance.

Instagram and Facebook remain the most critical platforms for prioritising media and content investment, with 45% and 35% of all respondents ranking Meta’s channels as their top channel of importance. 

While TikTok has become a global sensation, media investment hasn’t yet grown to the level some might expect, with only 5% ranking it as their most important channel. 

Prioritising environmental and social goals: DMOs adapt their strategies in response to sustainability, diversity, equity and inclusion trends. European DMOs are leading in prioritising environmental sustainability (62% for climate change, 56% for biodiversity) compared to Canada (29% for climate change, 24% for biodiversity) and US DMOs (8% for climate change, 33% for biodiversity).

Many DMOs emphasise social diversity and sustainability in their strategies, with figures showing that 42% of all those surveyed prioritise gender equality, and 45% of European and 40% of US DMOs strongly prioritise accessibility for visitors with disabilities. Around 35% of all respondents said that LGBTQ+-specific strategies (i.e. sexual orientation) were strongly prioritised, with similar importance (34%) placed on promoting social and economic diversity.

*To see the full survey methodology, download the “State of Destination Marketing 2024” report here.

(Source: Sojern)

SINGAPORE, 23 November 2023: Travel recovery to the Asia Pacific region was slow initially due to strict travel restrictions and pandemic-related concerns, according to a new report by ForwardKeys, partnering with the Pacific Asia Travel Association.

However, ForwardKeys says: “The tide is now turning, and international arrivals are making a robust comeback in the last quarter of 2023, getting closer to 2019 levels.”

The recovery of the travel industry is not happening uniformly across all countries. Some countries are faring better than others. South Asia is the most recovered sub-region, with a decline of only 5% in Q4. This fast recovery is supported by a robust restoration of international seat capacity, expected to exceed 2019’s levels by 4%

Among the top regional destinations, India is the most resilient, with only a 1% decline in tourist arrivals. As per the forward tickets, it is expected to reach 2019 levels of tourist arrivals in Q4 2023.

Japan (-11%) is also expected to be near pre-pandemic levels. The country managed to attract the interest of travellers from both regional markets (particularly South Korea, Singapore, and Australia) and long-haul markets (particularly the USA (United States of America), Canada, Germany, and France). The depreciation of the Japanese Yen makes the destination more affordable for a broader variety of travellers.

It is important to remember that since 2019, the landscape has evolved, influenced by geopolitical events, technological advancements, and a growing focus on sustainability. Therefore, destinations and travel professionals in the region need to consider these changes when preparing for 2024.

Despite the overall positive trend, air connectivity remains a significant challenge for the Asia Pacific travel industry. The pandemic led to reduced flight frequencies and higher airfares, which still affect the region today. Travel to and within the region remains more expensive and time-consuming than before, hindering the region’s full recovery. For example, the sub-region of Oceania (-37%) is still facing challenges in fully recovering from the impact of the pandemic. The region’s strong reliance on air travel, high airfare costs, and the slow recovery of the major markets (primarily China) have complicated the recovery of major destinations like Australia and New Zealand. As a result, many travel operators have shifted their focus to the domestic markets, resulting in more resilience. However, smaller destinations like Fiji, French Polynesia, or Samoa stand out as sub-regional success stories.

Despite these challenges, the Asia Pacific region possesses key assets that will propel its travel recovery forward over the coming months. These include the steady return of Chinese travellers, the growth of the Indian outbound and inbound markets, and the relentless efforts of Destination Marketing Organisations throughout the region to fuel travel demand.

APAC cities such as Fukuoka, Nha Trang and Nadi are all showing international arrival figures this Q4 above pre-pandemic level, up by 55%, 17% and 11% versus the same period in 2019. There is a sense of hope in the air.

 You can register to attend the ForwardKeys and PATA online seminar 28 November 28 to learn more: https://www.pata.org/calendar/pata-x-forwardkeys-charting-the-course-for-2024-unveiling-apac-travel-trends

All registered attendees will receive a complimentary copy of the detailed report by ForwardKeys.

(Source: ForwardKeys)