Here’s why travel brands should think twice before cutting their marketing spend

Mock up Signboard Airport Luggage Carousel Conveyor with Baggages on conveyor belt

With all the doom and gloom engulfing the travel industry right now, some brands may think it is wise to pull their advertising until things die down.

However, such a knee-jerk reaction may actually be more harmful than helpful to a company’s recovery from the COVID-19 outbreak.

A recent Facebook presentation seen by Travel Weekly titled ‘Fighting against COVID-19’ notes that while the travel sector has been hit hard by the COVID-19 outbreak, consumers are still willing to spend if the industry encourages it through promotions and deals.

The presentation warned against removing all ads, and recommended reprioritising marketing channels during the outbreak, as well as planning a “bounce-back consumer consumption” campaign in advance to quickly pick up ad spending post-outbreak.

Furthermore, two studies from Cornell University found it wasn’t a good idea for hotels to cut their marketing budget during times of economic crisis.

The author of the first study, conducted by Sherri Kimes in 2009, looked at tactics for hotels to survive an economic downturn, and surveyed 900 respondents from around the world.

Writing on her blog in February about how hotels can survive the COVID-19 outbreak, Kimes said her research provided “some very insightful comments that are as true today as they were 10 years ago”.

Kimes noted one of the key lessons for hotels from the study was to avoid cutting their marketing budget.

“Respondents discussed the need to keep current guests and to develop packages and promotions that both attracted current and potential guests,” she wrote.

“If you cut your marketing budget, this won’t be possible.”

The other study from Cornell, published in 2015, looked at the positive impact of marketing expenditure on the performance of hotels during the Great Recession.

In particular, the research findings highlighted the importance of personal sales efforts, including promotions, familiarisation trips, trade shows, and the training of sales personnel, personal sales visits to clients, and use of outside sales representatives to help hotels thrive in a recession.

This data led to the conclusion that hotel companies that invest in marketing, especially in tough times, “can achieve a payoff via various revenue drivers” and “will realise gains beyond just the short term”.

So, before you go scrapping all of your advertising, consider the above and remind yourself that the way brands deal with the COVID-19 crisis now will likely influence future customer habits.

Featured image: iStock/VTT Studio

Latest News

  • Famil

TravHost launches expert hosting service to transform industry famils

TravHost offers a pioneering service bridging the gap between media professionals, travel agents and tourism organisations, addressing the demand for exceptional famil hosts. Founded by seasoned travel media professionals Fiona Harper and Carolyne Jasinski, TravHost is poised to revolutionise the way tourism organisations and travel companies approach famils. With decades of experience in tourism and […]

  • Tour Operators
  • Travel Agents

Book big and bag a spot of the TTC Tour Brand’s Top Achievers’ Famil

TTC Tour Brands’ Top Achievers Famil incentive is back, rewarding top-selling agents with the chance to embark on an unforgettable trip to a destination that remains a secret – for now. Agents who have sold any Luxury Gold, Insight Vacations, Trafalgar, Costsaver and Contiki, from 1 December 2024 to 14 March 2025, go into the […]

  • Business Travel
  • Conferences

New Zealand International Convention Centre to open in February 2026

The New Zealand International Convention Centre (NZICC) has announced it is opening its doors to New Zealand and world conferences and events in February 2026. The long-awaited NZICC is set to transform New Zealand’s conference and events industry, boosting visitation and the wider economy with its world-class facilities. Located in the heart of Auckland’s CBD, […]

  • Cruise
  • Events

AmaWaterways invites AU/NZ travel trade to An Evening with AmaWaterways events

AmaWaterways has announced the dates of its upcoming An Evening with AmaWaterways events for travel advisors, just over a year after it entered the Australian and New Zealand markets. Dedicated to travel advisors, the events will be held in six cities and will be hosted by AmaWaterways’ regional sales managers, plus feature a presentation from […]

  • Destinations
  • Tourism

Mooloolaba cruise season boosts Sunshine Coast tourism and trade

Mooloolaba is set to welcome a series of cruise ships through February and March 2025, significantly boosting local businesses and tourism to the Sunshine Coast. Their arrival is expected to create a vibrant atmosphere and provide a substantial economic uplift to the region. Viking Sky kicks off the season on Sunday 8 February, with 930 […]

  • Food & Beverage

Little Pete Brewing opens first of its kind open-air bar

Little Pete Brewing has opened a new open-air bar at 543 Step Rd, Langhorne Creek, a must-visit South Australia destination for a drink with a view. The first-of-its-kind open-air bar sits on 8ha, surrounded by vineyards and paddocks, with the Bremer River flowing nearby and framed by majestic ancient river red gums. “We always felt […]

  • Events

CENTREPIECE is set to make a splash at AIME 2025

CENTREPIECE is set to make a splash at AIME 2025 with a one-of-a-kind activation that showcases their world-class event capabilities to inspire event planners and decision-makers. CENTREPIECE is located in the heart of Melbourne & Olympic Parks, Victoria’s epicentre for live sports and entertainment and home to world-renowned venues including Rod Laver Arena, AAMI Park, […]

  • Destinations
  • Tourism

NYC Tourism + Conventions announces two exciting new events

NYC Tourism + Conventions has announced ‘NYC Off-Broadway Week 2025’ and ‘Value Family Activities’ events lined up for this year. NYC Off-Broadway Week 2025 2-for-1 ticket sales for this event have begun with this season’s program featuring 29 Off-Broadway performances, including 18 new participants. The twice-yearly program runs from 17 February through 9 March with […]

  • Events
  • Tourism

Jeju wins bid to host 2028 Asia-Pacific Microscopy Conference

The Korea Tourism Organization (KTO) has successfully secured the 14th Asia-Pacific Microscopy Conference (APMC14) for Jeju in November 2028. This was achieved in partnership with the Korean Society of Microscopy, Jeju Special Self-Governing Province, Jeju Convention Bureau, and Jeju International Convention Center. Korea was selected as the final host after strong competition at the 13th […]

  • Cruise
  • Food & Beverage

Oceania Cruises sets new standard for onboard dining: one chef for every 10 guests

Oceania Cruises, renowned for The Finest Cuisine at Sea, has set a new standard for onboard dining with an exquisite new menu evolution in The Grand Dining Room. Launching on its newest 1,200-guest ship, Allura, in July 2025, the reimagined menus introduce over 270 brand-new recipes, from curated Signature Eggs Benedict breakfast selection to a chic French […]