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Brand trust overtakes ads as key travel driver in Asia-Pacific

Today

A new report from impact.com in collaboration with Digital Travel Insights reveals that trust and brand reputation have become primary drivers in travel decision-making among consumers across Asia-Pacific.

The study, titled "Beyond the Booking: Where APAC Travel Brands Are Investing for Growth," surveyed 1,200 travellers and 100 industry leaders from Singapore, Australia, and China to examine how evolving consumer expectations are shaping travel marketing strategies and brand priorities.

The report finds that more than 70% of travellers in the surveyed markets consider brand reputation and trust as top factors influencing their travel choices, placing these ahead of paid advertisements and traditional loyalty schemes. This trend reflects a shift in consumer priorities as travel demand stabilises in the post-pandemic environment.

Despite the prominence of trust in travel decisions, trust-based marketing remains primarily underutilised. Peer recommendations significantly outrank advertising as a trusted source of information, with 40% of respondents in Singapore, 46% in Australia, and 34% in China citing such referrals as influential. Comparison websites also play a key role, recognised by more than 70% of travellers in Singapore and Australia, and 58% in China, as their leading sources of inspiration during the research phase.

Travel marketers, however, continue to assign substantial importance to online advertising, listing it as the second most influential channel at 24%. This stance appears at odds with consumer preferences, as traveller data shows comparison sites, online travel agencies (OTAs), word-of-mouth, and cashback or loyalty programmes all outrank advertising in actual decision influence.

Adam Furness, Managing Director APJ at impact.com, commented on the findings: "The modern consumer demands trust, transparency and authenticity, and they turn to their communities and trusted sources of information to guide their purchasing decisions. The brands that thrive are balancing acquisition with retention and community-building through partnerships with affiliates, influencers, publishers, customer advocates and more. This report highlights how partnerships can help marketers increase revenue and build valuable connections with travellers through authentic content, recommendations and reviews."

The report highlights that APAC travellers, particularly those in Singapore, utilise various platforms when planning journeys. In Singapore, 74% of respondents use comparison sites, 65% consult OTAs, 51% engage with loyalty programmes, and 31% use social media during their decision-making process. The diversified digital journey underscores the challenge for brands to maintain visibility across myriad touchpoints.

Review and comparison sites command significant traveller trust, with 68% of Singaporean participants indicating reliance on such sources, similar to findings in China (72%) and somewhat higher than Australia (59%). The prevalence of these sites presents opportunities for travel brands to capitalise on early consumer intent by embedding affiliate links in travel content and guides.

Travel marketers are adapting by broadening their partnership strategies. Beyond OTAs and aggregators, which 27% still use to reach high-intent audiences despite commission fees reaching up to 30%, brands increasingly turn to influencers, affiliates, and content publishers. Affiliate marketing was recognised as a growing priority by 25% of marketers surveyed, as it offers a performance-based model that aligns remuneration with achieved bookings and addresses consumer preferences for cashback and discounts.

Influencer and affiliate marketing are gaining importance, with 15% and 11% of marketers, respectively, citing these channels as focal points for investment. Singaporean consumers display a noteworthy propensity towards these channels, with 45% expressing trust in affiliates and 63% in influencers. Across the region, this trend is echoed, as 50% of Australian respondents trust affiliates and 68% look to influencers, while 59% of Chinese travellers trust affiliates and 75% turn to influencers during their planning.

The report also explored industry challenges exacerbated by travel fatigue and economic pressures following the pandemic. As a result, brands are increasingly focused on customer retention (65%) and brand-building (64%). Marketers are urged to reassess the allocation of spend across channels, considering rising advertising costs and the shifting landscape of consumer trust.

The study outlines opportunities and trends likely to define the APAC travel and hospitality sector in the coming year, driven by changing consumer preferences and the growing importance of multi-channel, trust-based engagement strategies.

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