By Nilanjana Basu and Aishwarya Nair

(Reuters] – U.S.-based travel booking companies are heavily marketing in order to encourage more customers to use their websites and apps to book accommodation and flights. This is to take advantage of a boom in tourist during the upcoming summer.

Following being one of the largest victims of the healthcare crisis, Airbnb Inc and Booking Holdings (NASDAQ) Inc. Expedia Group Inc. (NASDAQ:) Tripadvisor Inc has seen unprecedented demand from Americans suffering from the pandemic.

According to U.S. Travel Association’s April data, six out of ten Americans plan to take at least one trip to the summer this year.

Richard Clarke from Bernstein, a Bernstein analyst said to Reuters that “This summer could be one of the greatest in travel history and there is no way anyone can miss it.”

According to Insider Intelligence, the U.S. tourism industry will spend about 14.2% of its marketing budget for digital advertising this year, which is approximately $4 billion.

While the increased spending may cause a dip in profits short-term, the potential benefits of this effort could far outweigh any costs in the future, since travel demand will only continue to grow.

GRAPHIC: Revenue set to jump from travel demand https://graphics.reuters.com/USA-TRAVEL/SUMMER/gkplgkrgavb/chart.png

Bookings are being booked at premium rates by customers. “There have been a lot savings over the past two-years… so even with inflation there are enough customers who will pay more just to travel,” HotelPlanner chief executive Tim Hentschel said to Reuters.

Adobe’s Digital Economy Index reported that March was 15% more expensive than usual for U.S. domestic flights. But, the rise in ticket prices has not hit flight demand. This suggests Americans may be ignoring the rising inflation impact at least temporarily.

RIDING A BOOM

To attract vacationers, travel companies are doing everything possible to improve their sites and offer innovative services.

Airbnb Finance Chief Dave Stephenson stated earlier this month that the company is increasing its marketing dollars, but it will remain relatively constant as a percentage revenue.

This San Francisco-based company has redesigned its website and app. It allows travelers to choose between properties or book their homes.

Booking stated that it expected marketing spending in the second quarter of 2009 to make up a smaller percentage than pre-pandemic, while Expedia said its rival Expedia would “spend into (travel) recovery.”

Most travel businesses spend a large amount on marketing and advertising. This is why they have to be creative in order to attract people to their products.

Booking’s marketing costs accounted approximately 46% for its total operating expense in the first quarter. Expedia’s selling, marketing and other expenses represented nearly 60%.

GRAPHIC: Soaring expenses https://graphics.reuters.com/USA-TRAVEL/SUMMER/lbvgnykbjpq/chart.png

David Goulden (Booking Chief Financial Officer) stated that this month, “We believe this year, with a recovering travel market, there’s potentially once per generation opportunity to really Lean into both Marketing and Merchandising.”