The videos and images seem to be everywhere.
A young woman looks out over sparkling blue seas from a cruise cabin balcony in an Instagram Reel. A man gives a 30-second tour of a five-star hotel room set to trendy sound on TikTok. On Lemon8, a faceless-carousel of Caribbean images provides a full itinerary of luxe options.
It all looks pretty spectacular, doesnโt it? Well, travel brands are banking on it.
Windstar Cruises is the latest company to bolster its influencer marketing strategy, recently announcing a partnership with Jerne, whichย helps to facilitate connections with influencers and was amongย PhocusWireโs Hot 25 Travel Startups for 2024.
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In doing so, Windstar is taking something of a leap of faith.
Measuring the return on investment from influencer marketing is challenging, and PhocusWright research shows 55% of travelersย favor recommendations from loved ones when seeking inspiration on social media about where to go.ย
Yet some experts say influencer marketing is an investment travel companies would be wise to consider. Theย content creators who amass large followings often build trust that’s akin to friendshipย โ at least on the level of recommendations โ plus they hold special appeal to younger travelers and get to places the travelers’ friends and families may not, opening audiences to new venues.
Travel is such a โvisual purchasing journeyโ that influencer marketing can have a big impact, saidย Brennen Bliss, CEO of travel-focused digital marketing agency Propellic. But his assessment came with a caveat: The reach of influencer marketing can’t be quantified the way, say, a digital advertisement on Google can.
โIt just has to be treated very differently [from] product performance marketing,โ Bliss said. โIt’s an investment in an attempt to attract people, [so] it’s not like a mathematical type of investment.โ
Influencer marketing as part of “full funnel” approach
While the marketing influencers do on social media is digital by its nature, it has more in common with traditional marketing – think billboards or flashy magazine spreads – than modern digital ads in which clicks, conversions and other calls to action can be tallied in real time.
One approach builds awareness, while the other is more direct about seeking a sale โ yet both can be important to a successful campaign.
Last year’s Phocuswright report notes that social media is helpful primarily in the “passive” planning that takes place when travelers are deciding where to go but before they are ready to book.
It just has to be treated very differently [from] product performance marketing. … It’s an investment in an attempt to attract people, whereas it’s not like a mathematical type of investment.
Brennen Bliss – Propellic
But โpassiveโ doesnโt translate to โno impact.โ And it’s particularly important whenย paired with other marketing efforts, Bliss said.
โAn influencer campaign is a long-term investment,โ he said, offering a firsthand example of his recent honeymoon to the Maldives, with a stay at a St. Regis Resort. โThe reason I did that was because of โฆ social media posts. It looked incredible.โ
For a luxury line like Windstar โ where smaller ships carry up to about 300 passengers, a tenth or less than some major cruise lines โ generating that kind of exposure can hold extra value.ย Janet Bava, chief commercial officer at Windstar Cruises, believes that successful marketing requires a โfull funnelโ approach.
Influencer marketingย is built on trust โ the sameย factor that validates a loved oneโs recommendation, Bava pointed out. The awareness raised by the influencer can initiate a cycle that ends with a sale.ย
โYou want to drive the consumer โฆ to learn more about the product or service or the travel experience that they’re promoting,โ Bava said. โAnd so creating that full funnel is going to be incredibly important for us brands to ensure that those leads are generated.โ
Whether to use influencer marketing as part of a brandโs strategy comes down to the brandโs goals, according to Phocuswright senior analyst Madeline List.
If brands are looking for quick conversions, influencer campaigns may not be a good choice, she explained. However, many younger travelers who spend more time on social media haven’t yet hit their peak spending power.
โBrands that play the โlong gameโ of spreading awareness early on may find more success in establishing longer-term interest and loyalty when these users reach their earning potentials,โ List said.
How companies weigh influencer marketing
While itโs โincredibly hard, if not impossible to trackโ influencer marketing ROI, Bliss said, brands and influencer marketing professionals are doing their best to measure its worth. That includes Windstar.
โWith my limited marketing budget, I need to measure and ensure that every investment that I make returns a booking,โ Bava said. โThere [are] different measurements and [key performance indicators] โ from awareness to number of leads generated, number of days that are converted through that full funnel โ that’s how I measure ROI … it has to bring revenue.โย
While she said Windstar has seen results from influencer relationships, she called it a โgray areaโ and said the cruise line has tasked Jerne to help them define ROI.
Jerneย has worked withย Marriott, IHG, Hyatt, Accor and Hilton properties, along with Virgin Voyages and other brands, yet CEO Tim Morgan said his company is operating in a space he still considers to be โquite nascent.โ As it’s grown, Jerneย has looked to more established industries and segmentsโ use of influencer marketing.
โThere’s some really interesting metrics and studies from major companies out there around those areas that we pored over to โฆ take best practices from,โ Morgan said.
The key metrics Morgan cited include:ย
- Earned media value: Dollars generated from social media, traditional media and third-party sites.
- Content creation value: The cost a travel company would pay for a third-party content creation services as opposed to receiving content creation in exchange for a hosted experience.
- Affiliate revenue: Revenue resulting from bookings and sales made by creatorsโ followers that can be tracked with a unique URL.
- Hosting cost recovery: Revenue a travel provider might receive from a creator paying a discounted rate as opposed to receiving a fully-hosted experience.
- Hosting cost: The providerโs net cost of hosting a creator.
But compared with other industries, he added, travel influencer marketing ROI is a “unique beast.”
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