OTAs invested billions in marketing in 2025 reports PhocusWire

Competition among the world’s largest online travel agencies continues to intensify, with the sector’s top players pouring more than $20 billion into marketing and sales efforts last year tells an analysis released recently by PhocusWire.

Marketing spending by the OTA giants has steadily increased in recent years. Combined investment reached $16.8 billion in 2023 and climbed again to $17.8 billion in 2024 before surpassing the $20 billion mark last year.

As a share of total revenue, marketing represented roughly 30% of revenue at Booking Holdings, about 50% at Expedia Group, 21% at Airbnb and 24% at Trip.com Group. The four biggest global OTAs battled to capture traveler demand and drive traffic to their platforms.

Booking Holdings and Expedia Group alone represented more than three-quarters of the combined outlay.

Despite growing industry focus on traveler intent data, loyalty initiatives and artificial intelligence-driven efficiencies, paid marketing channels remain central to OTA growth strategies highlights PhocusWire analysis.

Booking and Expedia lead the pack

Booking Holdings spent $8.2 billion on marketing in 2025, up from $7.3 billion the previous year.

The company said direct bookings accounted for roughly the mid-60% range of its business, broadly in line with 2024 levels. Its loyalty scheme continues to gain traction, with higher-tier Genius Level 2 and Level 3 members responsible for a high-50% share of room nights, up from the mid-50% range a year earlier.

However, CFO Ewout Steenbergen said to PhocusWire gains in direct traffic were partly offset by continued spending on performance marketing and social media campaigns.

CEO Glenn Fogel noted the company continues to allocate funds where it sees growth opportunities. A 13% jump in social media spending and increased brand marketing late in the year helped push fourth-quarter marketing costs to $1.9 billion, compared with $1.6 billion in the same period of 2024.

At Expedia Group, sales and marketing spending reached nearly $7.4 billion in 2025, up from $6.8 billion in 2024. The figure includes both consumer-facing and B2B marketing activity. According to the company’s management, Expedia is learning from integrations with emerging AI platforms as traveler behavior evolves, while still prioritizing direct engagement with customers.

About two-thirds of bookings across Expedia brands now come through direct channels, with direct business growing faster than indirect channels.

Airbnb and Trip.com increase investment

Marketing costs at Airbnb climbed to $2.6 billion in 2025, up from $2.1 billion in 2024. The company has steadily ramped up its investment from $1.5 billion in 2022 to $1.8 billion in 2023.

Airbnb executives said improved operational efficiency on the platform will largely be reinvested into marketing, product development and technology.

The company is also exploring the launch of a loyalty program. CEO Brian Chesky said such a program could significantly accelerate growth, but stressed the company wants to design something distinctive rather than replicate traditional loyalty models.

Meanwhile, China-based Trip.com Group spent about $2.1 billion on marketing in 2025, a 25% increase year over year.

The company attributed the rise to heavier promotional activity and continued international expansion. Trip.com had previously reduced spending during the pandemic period but has steadily rebuilt its marketing investment, reaching $1.3 billion in 2023 and $1.6 billion in 2024 before jumping again last year.

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