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Unlock This CourseEvery time a travel company runs an advert, prints a brochure, or posts on social media it costs money. Marketing is never free. So businesses have to make smart choices about how much to spend, where to spend it and what message to send. At the same time, they need to think carefully about their brand image the overall impression people have of them. Get these two things right and customers will keep coming back. Get them wrong and even a big budget won't save you.
Key Definitions:
Travel businesses must weigh up the cost of each marketing method against the results it brings in. A full-page magazine advert might cost thousands of pounds but only reach a small audience. A well-targeted social media campaign might cost far less and reach millions. Businesses must always ask: Is this worth the money?
A strong brand image means customers instantly recognise and trust a company. Think of the yellow and black of easyJet, or the blue globe of TUI. These aren't just pretty logos they carry meaning. They tell customers what to expect before they've even booked a holiday.
Marketing costs vary enormously depending on the size of the business, the target market and the methods used. A small guesthouse in Cornwall might spend £200 on a local newspaper advert. British Airways might spend millions on a global TV campaign. Both are making decisions based on their budget and what they hope to achieve.
Marketing costs in travel and tourism fall into several categories. Understanding these helps businesses plan their budgets effectively.
TV adverts, radio spots, newspaper and magazine adverts and printed brochures. These can be expensive but reach large, broad audiences. Tour operators like TUI still use TV adverts to build brand awareness.
Social media adverts, email campaigns, search engine optimisation (SEO) and pay-per-click (PPC) advertising. Often cheaper and more targeted than traditional media. Hotels and airlines use these heavily.
Travel fairs, brochures, window displays in travel agencies and promotional events. These have a physical cost printing, staffing, venue hire but can be very effective for certain audiences.
It's not just about how much money a business has. Several key factors influence how a travel company decides its marketing budget and where to direct it.
Large companies like Jet2 or Marriott Hotels have huge marketing budgets. Small independent travel agents or B&Bs have very limited funds. Smaller businesses must be more creative and targeted with their spending often relying on social media, word of mouth and local advertising.
Who you're trying to reach affects where you spend. If your target market is young backpackers, Instagram and TikTok adverts make sense. If you're targeting retired couples, a magazine advert or direct mail might work better. Spending money in the wrong place is wasted money.
Many travel businesses spend more on marketing before peak seasons for example, January is one of the biggest months for holiday advertising in the UK, as people make New Year resolutions to travel. Spending is timed to match when customers are most likely to book.
If competitors are spending heavily on marketing, a business may need to increase its own budget just to stay visible. In the airline industry, when one carrier launches a big sale campaign, rivals often respond quickly with their own promotions.
TUI Group is one of the world's largest travel and tourism companies, operating in over 100 countries. TUI spends hundreds of millions of pounds on marketing each year across TV, digital, print and in-store promotions. During the COVID-19 pandemic, TUI dramatically cut its marketing budget as travel was impossible. When restrictions lifted, it rapidly increased spending again particularly on digital channels to recapture customers who had moved to booking online. This shows how marketing budgets must be flexible and respond to external events. TUI's marketing always reinforces its brand values: reliability, family-friendliness and value for money.
Brand image is the picture customers have in their heads when they think of a company. It's built up over time through adverts, customer experiences, word of mouth and the way a company presents itself. In travel and tourism, brand image is especially important because customers are often spending a lot of money on something they haven't experienced yet they're buying a promise. A strong brand image makes that promise feel trustworthy.
Brand image is made up of several elements working together:
Virgin Atlantic was founded by Richard Branson in 1984 with a very deliberate brand image: fun, rebellious, stylish and customer-focused. While British Airways projected a formal, traditional image, Virgin Atlantic went the opposite direction. Their red uniforms, mood lighting, in-flight entertainment and cheeky advertising campaigns all reinforced the idea that flying with Virgin was an experience, not just a journey. This strong brand image allowed Virgin Atlantic to compete against much larger airlines despite having a smaller fleet. Customers chose Virgin not just for price, but because of how the brand made them feel. This is the power of brand image it can be just as important as price or product quality.
One of the biggest benefits of a strong brand image is customer loyalty. When customers trust a brand and feel a connection to it, they come back again and again and they recommend it to others. In travel and tourism, this is hugely valuable because acquiring a new customer is far more expensive than keeping an existing one.
Many travel companies use loyalty programmes to strengthen their brand image and keep customers coming back. These programmes reward repeat customers and make them feel valued which deepens the emotional connection to the brand.
British Airways' Executive Club and Emirates Skywards reward frequent flyers with points, upgrades and exclusive lounges. These programmes make customers feel special and reinforce a premium brand image.
Marriott Bonvoy and Hilton Honors reward guests with free nights and room upgrades. Customers who accumulate points are far less likely to switch to a competitor the brand becomes part of their travel habit.
Jet2holidays offers repeat customer discounts and a reputation for friendly service. Their brand image built around being "the friendliest airline" encourages customers to book again rather than shop around.
Here's something really important: brand image and marketing costs are closely connected. A luxury brand cannot afford to use cheap-looking adverts it would damage the image they've worked hard to build. Equally, a budget airline doesn't need to spend money on glossy magazine spreads aimed at wealthy travellers. The marketing spend must always match the brand image.
Ryanair and easyJet spend heavily on digital marketing, price comparison sites and email campaigns. Their brand image is built around low cost and convenience. Their adverts are bold, simple and focus on price. Spending money on expensive TV campaigns or glossy brochures would feel out of place and would confuse customers about what the brand stands for.
Companies like Abercrombie & Kent or Silversea Cruises target wealthy customers. Their marketing uses high-quality photography, premium magazine placements and exclusive events. The high cost of their marketing materials reinforces the message: this is a premium, exclusive experience. Cheap-looking adverts would undermine everything they stand for.
Ryanair has one of the most distinctive brand images in European aviation and it's built almost entirely around one thing: the lowest price. Their marketing is deliberately simple and often provocative. They've run adverts mocking competitors, used controversy to generate free press coverage and focused their digital spend on price-led messages. Ryanair spends relatively little on traditional advertising compared to its size instead relying on PR, social media and search engine marketing. Their brand image is clear: no frills, no fuss, just cheap flights. Customers know exactly what they're getting. This consistency between brand image and marketing spend is a key reason Ryanair has grown to become Europe's largest airline by passenger numbers.
Brand image can take years to build and just days to damage. In the age of social media, a single viral complaint or news story can seriously harm a travel brand. This means companies must actively manage and protect their brand image as part of their overall marketing strategy.
Thomas Cook was one of the most famous travel brands in the world founded in 1841, it had over 175 years of history. But by 2019, the brand image had become associated with outdated holidays, poor customer service and financial trouble. When the company collapsed in September 2019, stranding 150,000 British tourists abroad, it was the largest peacetime repatriation in UK history. The collapse showed that even the most established brand image can be destroyed by poor management, failure to adapt and loss of customer trust. The Thomas Cook name was later bought and relaunched as an online-only travel company attempting to rebuild the brand image from scratch. This case study is a powerful reminder that brand image must be constantly maintained and updated.