Travel Brands Turn to AI-Powered Commerce Media as Traditional Ads Lose Ground
AI search and zero-click answers are eroding the effectiveness of traditional online advertising, pushing travel companies to shift spending toward commerce media networks where they can reach high-intent customers with first-party data. Airlines, hotels, theme parks and tourism boards are expected to expand these efforts significantly in 2026.
Commerce media lets companies monetize their customer traffic by selling targeted ad placements to brand advertisers. Online travel agencies pioneered the model, but recent advances in generative AI are making it viable across the travel industry.
Why the shift matters
Travelers increasingly use AI assistants instead of browsing multiple websites. That consolidation means fewer ad impressions and fewer chances for retargeting. "If the open web becomes less fragmented from the user's perspective, blanket programmatic and broad paid social become less effective," said Nick Slavin, CEO of demand creation platform Curacity.
McKinsey projects commerce media networks will grow at a compound annual rate of 21% from 2023 to 2027, outpacing display ads, connected television and search advertising.
The numbers are real
Uber's advertising network reached $1 billion in annual revenue in October 2024. By February 2026, it had doubled to $2 billion. Expedia saw display ad revenue jump from $145 million in the first quarter of 2024 to $208 million by the fourth quarter of 2025.
Marriott launched its own media network in June 2025, tapping into 237 million members in its loyalty program. United Airlines launched Kinective Media in 2024 to serve personalized ads based on travel behavior. One cruise line client saw cost-per-acquisition drop 40%-70% using Kinective audiences.
AI moves from experimental to practical
Generative AI is now embedded across the entire advertising workflow-from campaign planning and creative development through measurement and reporting. "At this point it's practical," said Erik Brackmann, vice president of commerce media at Koddi.
AI helps identify customers in seconds and then customizes messaging beyond what was possible before. The continuous feedback loop between first-party data and AI-driven optimization is shaping the next phase of commerce media.
Travel brands with sophisticated loyalty programs stand to benefit most. Unlike other industries, travel customers develop emotional connections to brands they grow with over time, making those loyalty databases particularly valuable for personalized marketing.
Obstacles to growth
A Forrester Consulting survey of 112 travel and hospitality decision makers found that 45% reported disconnected inventory across on-site, in-app and in-transit environments. These operational blind spots prevent companies from optimizing across channels and reaching audiences at scale.
Many travel brands have access to rich customer data but haven't yet figured out how to activate it beyond their own channels. That represents significant untapped opportunity.
AI for Marketing and Generative AI and LLM are reshaping how brands reach customers. Understanding these shifts is essential for marketing professionals managing advertising budgets and customer acquisition strategies.
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