Google's growing impact on travel

Google's impact on travel though, is increasingly moving beyond just traditional search engine marketing. YouTube is a powerful influence on the travel decisions of many and Google Maps is one of the most commonly used apps by travellers when in their travel destination.

According to the publisher, the global market value of online travel agencies (OTAs) hit ($480.3 billion) in 2019, increasing at a CAGR of (9.4) from 2015 to 2019. This rapid growth rate and future growth potential intensified Google's focus on online travel. Even though Google made its first real steps into the online travel space in the early 2010s with its acquisition of ITA Software and the launch of Hotel Finder, its increased focus on the market in recent years has been evident.

Major companies such as Expedia Group and Booking Holdings would ideally want all bookings to be taken directly through their sites, so they do not have to carry on allocating vast amounts of their sales and marketing budgets on advertising with Google. With the company's core online travel group, it was able to increase its visibility in the travel space, which solidified its position as the dominant search engine in online travel. This move forced the likes of Expedia to carry on relying on Google for generating bookings, as now even more Google users will be directed towards its advertisements.

Major companies in the online travel space have long stated their intentions to reduce reliance on Google for traffic generation, and increased regulation will help with this objective. However, Expedia Group garnered one million more visits from paid marketing with Google in March 2021 than it did in March 2019, which was pre-pandemic times. This shows that Google is necessary for the likes of Expedia Group and Booking.com, and it will still be some time until these OTAs can drive sufficient traffic levels to their sites without utilizing the search engine giant.

As travel and the industry moves through the recovery from the pandemic, Google has identified three key areas that will grow in importance over the next year. According to the online search giant, heading into 2022, travel will become more meaningful, with a rise in 'life moments' that were put on hold because of the pandemic. Google commissioned Ipsos for a survey that reveals that more than half (56 per cent) of Americans are likely to participate in a life moment in the next two years.

Among that group, travel plays a key role, be that travelling for a wedding, job, education or moving. Of those planning to participate in a life moment in the next two years, 78 per cent are considering travel related to those moments.

According to the survey, 62 per cent of Americans who have stayed in an accommodation or booked a flight for a life moment say previous experience with a brand is important when deciding on a brand. About 78 per cent of travellers who have stayed in accommodations or booked a flight say good change or cancellation policies are important when deciding on a brand, whereas 85 per cent say affordable prices are important.

Safety as a key factor

The study also reveals that 70 per cent of travellers say a brand's respect for Covid safety guidelines and restrictions is important when decided on a travel brand, and 57 per cent of Americans who took a larger trip in the past year used an online source to get inspiration or ideas related to their trip.

On average, travellers who took a large trip in the past year spent 71 per cent of their time researching their trip online. In addition to a rise in life moments, Google believes travel will also become more inclusive moving into the next year, which will influence talent, teams, culture and marketing.

According to a report from Google/Storyline Strategies, travellers tend to value cultural engagement as a key deciding factor for destinations, and 86 per cent of travellers of colour have travelled abroad in pursuit of this goal.

Three in four travellers will seek out information specific to their cultural and ethnic backgrounds, with the top sources being word of mouth, travel guide sites and social media influencers. Finally, Google says travel will become more purposeful moving into the next year, and data and insights will be necessary to influence sustainability.

According to Ipsos, environmental considerations are important to potential travellers, with more than 50 per cent of travellers saying considerations such as carbon emissions and offsets are worth important when considering travel. Additionally, 51 per cent of travellers who stayed in accommodations or booked a flight for a life moment say sustainable/environmentally friendly options are important when deciding on a brand.