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Affiliate Marketing: A Key Driver for Travel Brands in 2025

by Alice

As the travel industry rapidly adapts to evolving consumer behavior, affiliate marketing is becoming an essential strategy for brands looking to stay competitive. A recent survey by Rakuten Advertising has revealed that UK travelers are increasingly turning to partnership marketing and affiliate campaigns to make smarter travel purchases, highlighting the growing importance of these strategies in the upcoming year.

The online survey, conducted in October 2024 with over 500 UK consumers, sheds light on current travel preferences, showcasing that many travelers are planning to either maintain or increase their travel budgets in 2025, with a strong interest in international destinations.

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Consumer Behavior and the Role of Affiliate Marketing

According to Harry Johns, Business Director of Travel at Rakuten Advertising, the diverse needs of travelers necessitate tailored approaches. “Every travel brand has its own unique set of success parameters and margins, so a one-size-fits-all strategy doesn’t work. Understanding the differences between categories like airlines, cruises, hotels, and trains is crucial,” he said. Travel marketers must be flexible, deploying hyper-targeted campaigns to maximize return on investment (ROI) across all customer touchpoints.

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Affiliate and partnership channels are proving to be powerful tools for driving customer acquisition throughout the entire buying cycle. Johns emphasized the value of agile affiliate networks, which can adjust resources during peak seasons and provide consistent support during quieter periods. Rakuten’s combination of technology and expertise allows travel brands to stay ahead of the competition and reach profitable audiences effectively.

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Booking Habits: Early Planning, Influences, and Research

UK travelers tend to plan their trips earlier than their US counterparts, with a significant portion booking their vacations up to six months in advance. Research findings also show that recommendations from friends and family (31%) and travel review sites (28%) play the largest roles in travel decision-making. Social media, while influential, lags behind in importance at 27%.

Notably, younger travelers (18-24 years old) tend to book trips impulsively, with 61% making their travel decisions within a month of departure. This highlights the potential for affiliate partners to capture last-minute deals and offers, particularly among affluent younger consumers.

The Influence of Reviews and Deals

Review platforms remain highly trusted, with 63% of travelers turning to TripAdvisor and 58% to Booking.com when deciding where to stay. Despite younger consumers’ heavy engagement with social media, review sites still dominate as the preferred source of information. Influencers are also driving booking behavior, with 38% of travelers having made a trip reservation based on an influencer’s recommendation. Interestingly, higher-income travelers (earning £100k+) are more likely to trust influencer-driven content compared to lower-income groups.

In an environment where travel costs, especially airfare, are rising due to factors like oil prices, influencer campaigns and special offers like discounts on car rentals and insurance are crucial in attracting both impulsive and long-term planners.

Cashback and Loyalty Programs

Despite the rising costs of travel, affluent travelers are particularly attracted to cashback and loyalty programs, with 74% of those earning over £100k expressing interest in such offers. Younger travelers (18-44 years old) also show a strong preference for loyalty rewards. This demographic shift reveals a strategic opportunity for travel brands to incorporate cashback and rewards into their affiliate marketing campaigns to appeal to deal-savvy consumers.

With 67% of UK travelers using cashback and rewards programs, the opportunity for travel brands to leverage these offerings is clear, especially as consumers become increasingly focused on finding the best value for their money.

Case Study: Icelandair’s Success with Affiliate Marketing

Icelandair, Iceland’s flagship airline, serves as a prime example of affiliate marketing success. Looking to expand its presence in the North American market, Icelandair partnered with Rakuten Advertising to build a new affiliate program. By leveraging Rakuten’s extensive publisher network and travel-specific technology, Icelandair was able to target the right audience and achieve significant growth in bookings.

Through testing loyalty partners and increasing cashback rates for off-peak periods, Icelandair saw a substantial rise in North American bookings and affiliate sales. Their proactive approach, combined with Rakuten’s global network, demonstrates the effectiveness of well-executed affiliate marketing campaigns in driving long-term growth.

Conclusion

As 2025 approaches, travel brands must refine their affiliate marketing strategies to meet the evolving demands of consumers. By embracing targeted, flexible campaigns and leveraging the power of partnerships, brands can ensure they remain competitive in an increasingly crowded market. With consumers becoming more value-conscious and deal-driven, affiliate marketing will play an essential role in shaping the future of travel marketing.

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