Travel marketing agency Propellic has released its Travel Industry Paid Media Benchmark Report, revealing significant inefficiencies in advertising during peak booking seasons. Based on over $250 million in ad spend across more than 120 travel brands, the report indicates that operators often pay premium prices for advertising during peak times, despite similar conversion rates in quieter periods.
Peak vs. Shoulder Season ROAS Gap
The analysis shows that campaigns during peak seasons yield an average Return on Ad Spend (ROAS) of 2.6x, compared to 6.3x during shoulder seasons. This suggests that travel operators could achieve more than double the return by investing in advertising during less competitive periods. John Matson, Chief Revenue Officer at Propellic, noted, “A click that cost $3 in February may cost $11 during peak booking season, yet the traveller is no more likely to convert immediately.”
The report also reveals that non-brand search terms dominate ad spend, accounting for 83–90% of budgets, yet these campaigns result in fewer conversions. This highlights a gap in how upper-funnel activities are measured compared to final conversions. Propellic suggests that brands with sophisticated attribution systems, which track the entire customer journey, outperform those that do not.
Looking ahead, the report warns of geopolitical instability and rising costs affecting travel demand and advertising efficiency in 2026. Propellic's findings urge travel operators to reconsider their advertising strategies to optimise returns. The full report is available on Propellic's website.
For travel professionals, this data underscores the need to shift ad spend toward shoulder periods and invest in better attribution. As Amadeus and Microsoft report outlines agentic AI use cases for airline operations by 2026, similar technology could help refine ad targeting. Meanwhile, AI adoption in travel surges as affluent women in lower-tier cities lead usage, suggesting new audience segments for shoulder-season campaigns.
Propellic's report also highlights that Amadeus launches AI-powered travel advertising platform with Accenture, indicating the industry's move toward smarter ad tech. For operators like Viking launching 2026 Alaska season with extended trans-Pacific itineraries, timing ad spend to shoulder periods could improve returns.
