If you run paid media for a travel
company, you have likely looked at last year's performance and asked some
version of the same question: am I actually buying growth, or am I paying for
bookings that would have happened anyway?
It is the hardest question in travel
marketing. And looking at how 120-plus brands deployed more than $250 million
ad spend, the data suggests most operators may be answering it with the wrong
instinct.
For multi-day tour operators
specifically, the 2025 Propellic Travel Paid Media Benchmark Report delivered a
compelling conclusion: The window of peak booking activity is also the window
of worst paid media efficiency. The very moment these operators are scaling
spend hardest is the moment that spend is buying the least.
High-booking-season campaigns delivered
an average ROAS (return on ad spend) of 2.6x. Shoulder-booking-season campaigns
delivered 6.3x. Travelers booking in shoulder season spent within 5% of what they spent at peak, so the operators were not just selling cheaper
trips. They were selling roughly the same product to the same kind of customer
for less than half the customer acquisition cost.
Picture how that plays out on the ground.
In July, 50 multi-day operators are bidding for the same "safari tours
Kenya" keyword. A click that cost $3 in February now costs $11. Conversion
rates barely move because the traveler clicking in July is no closer to booking
today than the traveler who clicked in February. They are still researching,
still comparing, still talking to spouses and friends. Multi-day travel has one
of the longest decision windows in the industry, often stretching months from
first ad click to final booking. Bidding aggressively at peak booking demand
pays a premium for clicks that will not actually book any faster than the
cheaper clicks placed in slower months.
The pattern is sharpest in multi-day
because its booking arc is longest. Online travel agencies show a milder
version of the same effect. Day tours follow the more intuitive pattern: For
that sector, peak booking demand and peak paid efficiency line up, because
day-tour bookings happen fast enough that the auction premium does not decouple
from the booking. The average day-tour decision window is just 1.9 days.
The search trap
Another finding from the data is more
uncomfortable, because it is a problem most operators are funding themselves
and one that requires a real overhaul of the measurement stack to fix.
For those less familiar, non-brand
keywords are the broad, exploratory phrases travelers use before they have
picked a brand. Searches like "best Galapagos cruises" or
"Iceland northern lights tour" rather than "Preferred Hotels"
or "G Adventures." These are the terms that bring new customers into
the funnel for the first time, which is why they account for the majority of
paid media spend across every sector the report covers. In multi-day tours,
non-brand makes up 90% of total spend. In day tours, 85%. Even OTAs sit at 83%.
Then look at the conversion data. In
multi-day, non-brand keywords account for 90% of paid spend but generate only
74% of paid conversions, a 15-point spend-to-conversion gap. Day tours show a
12-point gap. The implication is not that non-brand investment is wasted, of
course. The implication is that travel brands run the risk of paying for the
awareness layer of the funnel without building the systems to capture the
demand they have stirred up.
Here is what that looks like in practice: A traveler searches "best Galapagos cruises" and clicks a paid ad.
They browse three trip options on the operator's site, read some reviews, then
close the tab. Any travel marketer has seen this 10,000 times in their
analytics. Two weeks later, after watching YouTube videos and asking a friend
who has been, that same traveler types the operator's name directly into Google
and books through the brand search result.
In most attribution systems, the brand
keyword gets credit for the booking. The non-brand ad that initiated the
journey looks like it underperformed. Part of the spend-to-conversion gap
reflects exactly that attribution reality.
The travel brands pulling ahead of the
pack are not spending dramatically more or less on non-brand than the rest of
the category. They are just measuring it better. They have built the
attribution infrastructure to credit non-brand spend for the bookings it
actually drives downstream, and they treat prospecting and remarketing as a
single funded system rather than two competing line items fighting for
quarterly ROAS optics.
Three sectors,
three stories
The biggest shift in the 2025 data is
that there is no single industry-wide answer to the question of where
top-quartile operators outperform. The size of the gap between average and
top-quartile performance (what the report calls P75, the threshold above which
the top 25% of contributors sit) varies dramatically by sector. The variance
itself is the more useful finding.
In OTAs and marketplaces, the gap between
the average performer and the top quartile is 68%. The mean OTA operator runs
at 3.36x ROAS; the top-quartile operator clears 5.65x. The contributor spread
is wider in OTAs than in any other sector covered, which means the headroom for
an average OTA to materially improve performance is substantial.
In day tours and experiences, the gap is
31%. The mean operator runs at 2.92x; the top quartile clears 3.83x.
Meaningful, but the distribution is tighter. Day tours is a sector where
execution discipline pays off rather than one where a few brands occupy a
fundamentally separate performance tier.
In multi-day tours, the gap is just 4%. The mean operator runs at 4.55x; the top quartile at 4.73x. The sector
is operationally consolidated. Most contributors are running paid media at
broadly similar efficiency, which means the strategic question for a multi-day
operator is not "how do I break into the top quartile" but "how
do I extract more from the operating model already running."
These sector-level gaps also show
meaningful variation when contributors are tiered within each sector by average
order value. The implication for any travel marketing leader looking at their
own numbers is that "average paid media performance" in travel does
not mean one thing. It means three different things depending on the sector,
and meaningfully different things again once tier is accounted for within a
sector.
Across the sectors where meaningful
top-quartile lift is available, the leading operators tend to share a set of
operational patterns we see firsthand. They own category-level search terms
beyond their own name, capturing demand before competitors do. They scale spend
during shoulder season when competitors retreat. And they use attribution
models that credit ads which influenced a booking but did not directly close
it, rather than the last-click view that quietly defunds upper-funnel
investment. The full 2025 benchmark report names six operational patterns in
total, with the specific channel and budget mechanics behind each.
The honest answer to whether you're buying growth or paying for bookings you'd
get anyway depends on whether your measurement stack can see far enough
upstream to tell the difference - and the gap between the brands that can and
the brands that cannot is now the defining feature of each category.
The 2025 dataset offers a baseline
against which travel marketers can evaluate their own paid media operations in
what is shaping up to be a more volatile 2026.
Learn more
Download the full Travel Paid Media
Benchmark Report at
propellic.com/research for
sector-by-sector benchmarks and the operational patterns of the top 25% travel
operators.
About the author...
John Matson is chief revenue officer at travel marketing agency
Propellic.