• Online travel agencies (OTAs) like Airbnb, Booking Holdings, Expedia Group, and Trip.com Group collectively increased their marketing spend to $4.5 billion in Q1 2025, continuing a trend of aggressive investment in brand and customer acquisition.
• These companies are diversifying their marketing strategies by incorporating advanced technologies such as AI and expanding their presence on social media platforms to enhance direct bookings and customer engagement.

In the first quarter of 2025, the marketing expenditures of major online travel agencies (OTAs) such as Airbnb, Booking Holdings, Expedia Group, and Trip.com Group increased significantly, totaling $4.5 billion. This rise is part of a continuous effort by these companies to capture more market share and solidify their brand presence in a highly competitive industry. Over the previous year, these four giants invested a staggering $17.8 billion in marketing efforts.

Booking Holdings reported a 10% increase in its marketing spend compared to the same quarter the previous year, reaching nearly $1.8 billion. This increase also reflected a higher percentage of gross bookings, from 3.7% to 3.8%. The company has seen a steady increase in its B2C direct bookings, moving from a low-60% range to a mid-60% range over the past year, indicating a successful shift towards more direct consumer engagement.

Expedia Group, on the other hand, has been leveraging AI technology to enhance its marketing strategies. The company introduced a new AI-powered tool called Trip Matching, which allows users to create travel itineraries based on Instagram Reels, directly integrating social media engagement with travel booking capabilities. This initiative is part of Expedia’s broader strategy to adapt to changing consumer search behaviors and ensure prominent visibility on emerging AI platforms like ChatGPT.

Airbnb also increased its marketing spend by 9.5% to $563 million, focusing on expanding beyond its traditional accommodation offerings. The company relaunched its Experiences platform, supported by a new television advertising campaign, and continued to target growth in global markets with a localized approach to product and marketing strategies.

Trip.com Group, although still trailing behind other major OTAs in terms of total spend, increased its marketing investment by 30% to $413 million. This significant increase is part of the company’s ongoing efforts to recover and expand following the lifting of pandemic restrictions in China. Trip.com particularly focuses on the silver generation, developing targeted marketing content such as short-form drama series to appeal to older adults.

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