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More retailers open restaurants: Muji, Coach, and Louis Vuitton are among the companies relying on hospitality concepts to boost store visits and spending.

As of 2023, about 21% of American Express (Amex) network volume came from co-brand (both travel and non-travel) cards, per our estimates. A full 10% came from Delta alone. Similarly, roughly 16% of Citi鈥檚 volume came from its co-brand cards, including those with American Airlines. All that volume means valuable interchange revenues鈥攁nd interest payments鈥攆or issuers.

Other airlines like Alaska Airlines have also pushed into the premium space as the cards can bring in higher volume and revenues

Leisure travel demand ticks up ahead of the holiday season: Airbnb, Expedia, and Booking expect reservations to accelerate in Q4.

On today's podcast episode, we discuss what commerce media encompasses, the size of the financial and travel networks, and the companies to pay closest attention to in this space. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Senior Analyst Arielle Feger and Principal Analyst Sarah Marzano.

US travel industry digital ad spend will grow by 8.9% this year and 7.9% next year, per our forecast, representing a slow down after years of double-digit growth.

Commerce media networks are expanding beyond retail into new verticals like travel and financial services, creating opportunities for targeted advertising using first-party purchase data. The key to growth will be achieving a delicate balance, and engaging鈥攔ather than alienating鈥攃onsumers.

US travel media network (TMN) ad spend will reach $2.13 billion this year and increase to $2.96 billion in 2026, per our September 2024 forecast.

The travel industry鈥檚 total media ad spending declined by almost 60% in 2020, but as of this year, it will have fully regained the lost ground.

With no shortage of spending options, advertisers weighing whether to invest in TMNs will be considering what travel companies can do better or at a better value than comparable channels. First-party data, captive audiences, and a diverse array of ad inventory are some components of the travel media value proposition.

Leisure travel demand remains strong to close out 2024: American Airlines and Southwest expect bookings to pick up in the final months of the year.

Holiday travel demand is strong, United and Delta say鈥攅xcept for during the presidential election: Uncertainty is pushing some consumers to defer discretionary spending.

On today鈥檚 podcast episode, we discuss which hotel guest behaviors do people think are most acceptable and unacceptable, the first ad on every media type, how American households look today compared to the 1960s, and more. Tune in to the discussion with Senior Director of Podcasts and host Marcus Johnson, Senior Analyst Blake Droesch, and Vice Presidents of Content Suzy Davidkhanian and Paul Verna.

Financial services, travel companies, and commerce intermediaries have joined retail as distinct commerce media verticals. Beyond first-party data (which is table stakes), networks鈥� strengths and opportunities vary. Growth in travel media network ad spending will slow as economic pressures affect the travel industry.

The Travel Media Network Explainer 2024 (蘑菇AV subscription required).

Travel platforms are also making inroads, from a global position. Expedia is a perfect example of a global travel brand building a travel media network and expanding into Europe through partnerships鈥攚ith Deutsche Hospitality, the European Travel Commission, and the Croatian National Tourism Board.

Travel media networks will grow healthily, but may struggle to achieve escape velocity. In an era when many media sellers struggle to make the case that they offer advertisers an engaged audience in a differentiated mindset, travel media has a leg up.