Tier II and III cities fuel 35% of travel ad impressions in 2024

New Delhi: Digital advertising accounted for nearly 78% of total travel and tourism ad spend in 2024, according to a new report by ad-tech and media strategy agency Excellent Publicity. The report, which draws from over 30,000 campaigns executed by the agency alongside data from TAM Media Research, outlines the evolving media consumption habits of Indian travellers and the strategies adopted by brands to keep pace.

The study found that the sector experienced a 28% increase in advertising expenditure in 2024, driven by rising domestic travel, “revenge tourism”, and increased access to international destinations. With travellers becoming more spontaneous and digitally engaged, marketers leaned into personalised content, real-time campaigns, and visual storytelling to influence travel decisions.

Platforms such as YouTube and Instagram accounted for over 62% of digital travel spends, with short-form video content—especially Reels and YouTube Shorts—playing a key role in visibility. Influencer-led content grew by 45% year-on-year, with micro and mid-tier creators producing high-performing campaigns around “hidden gems”, “weekend getaways”, and “travel hacks”.

According to the report, Tier-II and Tier-III cities contributed to 35% of total digital impressions, indicating a growing appetite for travel beyond metro areas. Brands such as Goibibo, Yatra, and RedBus have focused on these regions through vernacular content, festival campaigns, and cashback-led promotions.

Traditional media continues to hold relevance. Television accounted for 12% of total spend, largely through prime-time placements and infotainment tie-ins targeting families and older audiences. Print held a 3% share, often used for seasonal promotions and destination coverage. Out-of-home (OOH) advertising comprised 6%, typically around transport hubs and tourist-heavy zones, while radio remained a niche channel, contributing 1% and used strategically during festive periods and long weekends.

Ad volumes peaked during the April–June period and again between October and December, aligning with school holidays, festive breaks, and wedding season. Campaigns centred around adventure, wellness, and religious tourism gained momentum, particularly those featuring destinations like Rishikesh, Ladakh, Udaipur, and Bali.

MakeMyTrip, EaseMyTrip, Club Mahindra, Agoda, Air India, and Thomas Cook accounted for over 33% of the digital travel advertising budget. Campaigns ranged from festive deals and loyalty schemes to influencer-hosted travel series and augmented reality itinerary tools.

The report also noted a rise in “experiential travel” narratives, where campaigns emphasised cultural immersion, unique stays, and emotional storytelling—often tapping into themes of post-pandemic exploration and nostalgia.

Emerging technologies like AR/VR-based previews, voice-assisted planning, and AI-driven booking tools were noted as growing areas of investment. Many brands are also highlighting sustainability in their messaging, reflecting a broader consumer interest in eco-conscious travel.

Commenting on the findings, Vaishal Dalal, Co-founder and Director of Excellent Publicity, said, "The travel and tourism industry's evolving media mix reflects a strategic blend of traditional and digital platforms. While television and print remain key to building aspirational value and reaching broader audiences, the growing adoption of digital tools highlights the sector's shift toward personalised and real-time engagement. We anticipate continued innovation in immersive formats and performance-driven storytelling to inspire and convert today’s experience-hungry travellers."