In the rapidly evolving landscape of the travel industry, two key skills are emerging as essential for success in the near future: leveraging emotional value to drive traffic and utilizing attribution modeling to understand customer retentionAs we look forward to 2025, these skills might well determine the profitability of travel enterprises striving to survive in an increasingly competitive market.
2024 is set to be defined by the concept of emotional valueAs the travel industry confronts growing challenges, attracting consumer attention and stimulating spending have become paramountThis is particularly true as the demographic of mainstream consumers becomes younger, resulting in an amplified effect of emotions on marketing strategies.
One of the most effective ways to evoke emotional responses is through the use of intellectual property (IP). For instance, the pervasive popularity of the television drama "Blossoms" has successfully tailored the City Walk experience in Shanghai, characterized by its rich heritage and finger on the pulse of modern-day attractions
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Featured landmarks, such as the historic Peace Hotel and Jinjiang Hotel, saw tourism-related search inquiries soar by an impressive 415% and 73%, respectively, illustrating the power of emotional connections fostered by cultural narratives.
Another exemplary case is the collaboration between the Changlong Space Adventure Park and the beloved children's IP "Mi Xiaoqian Goes to School 3," which took the family audience by stormDuring the summer of the previous year, a custom promotional short series titled "A Great Adventure in the Space Adventure Park" was craftedThis series highlighted the park’s fun activities, diverse animal populations, and educational content, creating an engaged partnership that produced remarkable resultsWithin just two hours of release, the series generated over ten thousand interactions online, outstripping even the original show's audience growth.
In addition to executing established IP strategies to spark emotional engagement, many destinations have begun proactively cultivating their own identity through partnerships with social media influencers and content creators
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This strategy has proven particularly effective during busy holiday periods, turning potential tourists’ interests into palpable excitementFor example, during dual-celebration periods, Macao targeted influencers from the Greater Bay Area to disseminate appealing content that led to record numbers of tourists visiting the region, aided by promotional coupons delivered through targeted ads on social media.
As travel enterprises master the art of emotional value marketing, the tourism industry, often viewed as traditional, has transformed into a hub of innovative traffic strategiesLearning to make a splash and attract followers has become second natureThis familiarity has, however, been hard-earned through experiences fraught with the pressures of fleeting ‘internet fame’—a stark contrast to the established principles of lasting engagement.
For 2025, a new keyword will surface—understanding the consumer
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Emotional marketing yields rapid results, but the transient nature of this success necessitates a deeper dive into the nature of the traffic generatedWho is being captured by these marketing efforts? Who stays? Developing a clear customer profile ensures that future marketing campaigns are not only more directed but also yield higher conversion rates.
In focusing on emotional value, destination cities and travel enterprises have transformed from merely seeking crowds to analyzing and nurturing specific audience segments, adopting a long-term approach to traffic management and customer engagementYet, quantifying the impact of marketing campaigns has long posed a significant challenge for practitioners in the industryWhile metrics like reach and volume are readily available, the actual return on investment from promotional efforts often remains illusive.
However, some platforms have recognized this need and implemented solutions to aid businesses in navigating this complexity
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Notably, Tencent Advertising has launched a significant feature aimed at the travel sector that facilitates visit attributionThis tool enables marketing teams to track actual footfalls stemming from promotional efforts, providing insight into cost efficiency and value generated.
Consider the example of the Henan Yinji Animal Kingdom, which targeted local audiences through a social media advertising campaign while the winter tourism market was receiving less interestThe campaign successfully attracted over 2,400 visitors within a 30-day attribution period at a commendable cost of just 22 yuan per visitorThis data aligns well with the average customer acquisition costs for other tourist sites in the Tencent advertising framework.
This level of transparency in marketing expenditure elucidates the return on investment, shifting the narrative around promotional spending from "money down the drain" to assessments of effectiveness compared against alternate channels
Given the rising costs of online customer acquisition amidst dwindling profit margins in the travel sector, the demand for sustainable, long-term engagement strategies is becoming increasingly critical.
The advent of trackable advertising channels empowers businesses to refine their marketing practices significantlyWith rising scrutiny on return on investment (ROI), marketing strategies that can reliably demonstrate outcomes will undoubtedly rise to the forefront of enterprise solutions.
Considering the broader economic landscape, the global economic downturn projected for 2024 places significant pressure on businesses, including travel-related sectorsRecent statistics indicate concerning trends in key performance indicators across hotels, airlines and attractions, with revenues per available room (RevPAR) for hotels depicted as falling by 9% and 12% year-over-year during the first two quarters of 2023.
Leading publicly traded attractions have reported similar challenges, with Yellow Mountain Tourism showing a 30.15% decrease in net profit over the last three quarters
To mitigate performance declines, many travel enterprises are exploring structural adjustments, though the efficacy of such changes can take time to materializeReducing costs has proven to be a more immediate response, with many companies already hinting that 2025 will see advertising budgets influenced by anticipated performance outcomes.
Ultimately, creating meaningful returns—a reflection of actual revenue generated and the cultivation of a devoted customer base—remains the true measure of successThe discernible trend toward specialization and tightening of market focuses suggests that the hospitality sector will thrive by honing in on niche offerings and analyzing consumer preferences.
As a result, the core value of marketing for travel enterprises extends beyond immediate customer acquisitionIt delves into deeper consumer insights and fostering long-term relationships, ultimately driving higher conversion efficiencies.
Capabilities around visit attribution provide companies with a critical tool to evaluate their marketing expenditures effectively