Facebook’s New Travel Product Might Help OTAs With More Exposure

by Trefis Team
-3.13%
Downside
1864
Market
1806
Trefis
PCLN
Priceline
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Now online travel agencies can push their products further to their potential clientele with the help of Facebook’s new Dynamic Ads for Travel. This feature has been launched in June on both Facebook and Instagram to help travel companies influence their users with new travel plans and ideas. It has been found that in the U.S., travelers spend almost 20% of their time on their phones and especially on apps such as Facebook and Instagram, hence this is an innovative way to target more customers. Since May, companies such as InterContinental Hotel Group, Marriott, and Trivago have been beta testing the ads.

OTAs can take advantage of this feature to display images of the destinations for their ads. For example, if a traveler is researching a travel site for trips to Abu Dhabi, the site can retarget that person with ads containing images of Sheikh Zayed Mosque or Ferrari World instead of just showing the accommodations available in the destination. The feature can be used by airlines and hotels as well to show ads of the destinations instead of just showing an image of the aircraft or the property.

OTAs are always on the lookout for means to expand their customer base, due to the aggressive competition in the field. The recent advent of Google Trips into the travel booking arena though not yet threatening to Priceline or Expedia, might cause a dent in TripAdvisor’s tourism business. There are also emerging competitors such as Airbnb posing threats to the existing OTA leaders. Under these circumstances, capitalizing on the travelers’ increased usage of apps such as Facebook and Instagram, to gain more customers, does seem like a good idea for the OTAs.

Have more questions on Priceline? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Priceline

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