Get marketing news you'll actually want to read
Marketing Brew informs marketing pros of the latest on brand strategy, social media, and ad tech via our weekday newsletter, virtual events, marketing conferences, and digital guides.
Americans are planning trips to Europe this summer like there’s no tomorrow. According to travel site Kayak, searches for European travel are 77% higher than last year.
A broader uptick in travel is helping a number of hospitality companies continue bouncing back from financial challenges posed by the pandemic. Several brands in the travel space reported strong earnings this quarter, indicating the sector’s rebound is still going strong.
One of these companies is Hilton, which rolled out its largest campaign in years last summer, called “It Matters Where You Stay.” Last quarter, Hilton experienced a 30% year over year increase from the same period in 2022 in terms of “revenue per available room,” a measure “calculated by multiplying a hotel’s average daily room rate by its occupancy rate.”
The increase continues a growth streak for the hotel brand; in the first quarter of 2022, Hilton’s revenue per available room increased 80.5% compared to the same period in 2021. Its revenue grew to $2.3 billion last quarter, beating analyst expectations.
Meanwhile, Alaska Airlines’ revenue grew 31% year over year last quarter. According to CEO Ben Minicucci, the company “returned to pre-pandemic levels of flying” in Q1.
“As we progress through the year, we have taken deliberate steps to build momentum and we are well prepared for peak summer flying,” he said in an earnings release. Alaska recently invested in two regional Super Bowl ads featuring television personality and fashion designer Tan France.
In its earnings call, Delta posted a rosy outlook for the months ahead. According to Delta president Glen Hauenstein, the airline has seen “record advance bookings for the summer.” In 2023, Delta expects its revenue to increase 15% to 20% year over year.
The company recently started investing in ads that promote its SkyMiles loyalty program. In March, it rolled out a campaign called “Kaleidoscope.” Narrated by Viola Davis, the ad uses themes of color to encourage viewers to travel.