OTAs push marketing spend past $20 billion in 2025

Rising investment underscores continued reliance on paid channels despite growing focus on direct engagement and AI

Online travel agencies significantly increased their marketing investments in 2025, with the largest players spending a combined $20 billion on sales and marketing. Booking Holdings and Expedia Group accounted for more than three quarters of the total, reflecting sustained competition for traveler attention. Despite ongoing discussions around loyalty, direct channels and AI-driven efficiencies, overall spend continues to rise year over year. While direct bookings are growing for several players, they are not yet reducing dependence on performance marketing and brand advertising.

Key takeaways

• Scale of investment: The leading OTAs collectively spent $20 billion on sales and marketing in 2025, marking another year of growth and highlighting the intensity of competition in the sector.
• Booking Holdings’ balanced strategy: Booking increased marketing spend to $8.2 billion, with direct business in the mid-60% range and Genius loyalty members accounting for a high-50% share of room nights, yet higher performance and social media investment offset direct gains.
• Expedia’s disciplined shift: Expedia invested nearly $7.4 billion, maintaining that two thirds of bookings come from direct channels, while adopting a more data-driven marketing approach and balancing B2C reductions with higher B2B commission-related spending.
• Airbnb’s reinvestment cycle: Airbnb raised marketing spend to $2.6 billion and signaled that platform efficiencies will be reinvested into marketing, product and technology, with a potential loyalty program under development.
• Trip.com’s international push: Trip.com increased marketing investment by 25% year over year to $2.1 billion, driven by promotional activity and global expansion, continuing a steady rebound from pandemic-era reductions.
• Marketing intensity remains high: Marketing spend as a share of revenue remains substantial—50% for Expedia, 30% for Booking, 24% for Trip.com and 21% for Airbnb—indicating that paid acquisition remains central to OTA growth strategies.

Source: PhocusWire

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