AI, Retargeting, and Smarter Spend – How Travel Apps Are Rewriting Growth in 2025
New AppsFlyer data shows how travel marketers are shifting strategy to increase value from existing users, not just new installs
San Francisco – July 14, 2025 – As the 2025 summer season kicks into high gear, mobile travel apps are taking a new route to growth, one powered by smarter engagement, lifecycle marketing, and AI. According to new data released by AppsFlyer today, retargeting now drives over 75% of total conversions in travel apps, as marketers focus on maximizing value from existing users rather than chasing top-of-funnel volume.
The aggregate data from 293 travel apps across the United Kingdom, France, Germany, Spain, Italy, Netherlands, Poland, and the United States, reveals that just 20% of the largest travel companies account for more than 80% of the market share, underscoring the importance of retention, re-engagement, and loyalty in a saturated landscape.
Growth Redefined – and Outpacing Other Verticals
AppsFlyer’s analysis focuses on three key sub-verticals in the travel industry: Integrated travel services combining hotel, flight, and car rental bookings within one app; Hotel booking apps and Flight booking apps.
Looking at first-time installs across these three categories combined, AppsFlyer found 5% year-over-year growth across six Western European countries (UK, France, Germany, Spain, Italy, Netherlands) in the 12-month period ending May 2025, compared to the previous year.
By contrast, most other app verticals in these same countries – including ecommerce and gaming – recorded flat or near-zero growth over the same period. Finance was the only other vertical showing comparable upward momentum. This positions the travel sector as one of the strongest-performing mobile verticals in Europe today.
“The data tells a clear story: the era of growth-at-all-costs is over. Smart travel marketers are now getting 75% of their conversions from retargeting existing users, not chasing expensive new installs,” said Aliaksei Ustauski, Director of Sales Strategy at AppsFlyer. “It’s more profitable to turn your current users into repeat customers than to constantly acquire new ones. Marketers who embrace AI-powered lifecycle campaigns and personalized re-engagement are seeing real results: 6% higher day-one retention and 13% more purchases per paying user. The future belongs to those who can activate, not just acquire.”
Retargeting Is Now the Primary Driver of Conversions
Across the analyzed markets, retargeting makes up the majority of travel app conversions, over 75% in most cases. That includes repeat engagements, all fuelled by targeted paid campaigns, as well as re-engagements via push notifications, emails, and other owned media channels.
Retargeting volumes grew 20% to 30% year-over-year in the January to May 2025 period for most apps in the dataset, and marketers who implemented AI-powered personalization and campaign automation saw measurable improvements in retention and monetization: Day-one organic retention rose from 17% in 2024 to 18% in 2025 while purchases per paying user increased from 1.89 to 2.13.
Seasonality – Spikes in Demand, Steady Paid UA
AppsFlyer data confirmed that seasonality remains a dominant force in travel app installs, with spikes in July and August, aligning with peak summer holiday planning and in January, reflecting early-year travel intent, but less pronounced.
However, the strongest seasonal spikes were seen in organic installs, not paid campaigns. Paid user acquisition (UA) remained relatively steady across the year, with only a 10% to 15% increase during Q3, confirming that top-performing apps are increasingly relying on retargeting and lifecycle strategies during high season.
In contrast to retargeting, non-organic installs (NOI) from paid channels showed no year-over-year growth from January to May 2025, reinforcing the industry’s pivot to more cost-effective marketing.
Market Breakdown – Western Europe Leads the Shift
AppsFlyer also compared trends in first-time installs, retargeting growth, and paid UA volumes.
United Kingdom, France, Germany, Spain, Italy, and the Netherlands all recorded:
- Flat or declining paid UA volumes, measured by NOI
- Double-digit growth in retargeting conversions for most apps, with the exception of some signs of slowdown in early 2025
The combined data shows that Western Europe outperformed other regions in terms of conversion share driven by re-engagement channels.The report notes that in the United States, performance was more mixed with no growth in first-time installs year-over-year and slower retargeting momentum, with nearly half of the top apps reporting stagnation or decline in re-engagement conversions compared to 2024.
About the Research
The data set by AppsFlyer is based on anonymous, aggregate data from 293 travel apps across the United Kingdom, France, Germany, Spain, Italy, Netherlands, Poland, and the United States. The report covers the period from January 2022 through June 2025 and includes data on over 120 million app installs annually. Non-organic installs, retargeting conversions, retention and monetisation metrics were derived from AppsFlyer’s attribution platform. To ensure consistency across datasets, product – retention and monetisation – metrics were evaluated using Android data only.
About AppsFlyer
AppsFlyer helps brands make good choices for their business and their customers with its advanced measurement, data analytics, deep linking, engagement, fraud protection, data clean room, and privacy-preserving technologies. Built on the idea that brands can increase customer privacy while providing exceptional experiences, AppsFlyer empowers thousands of creators and technology partners to create better, more meaningful customer relationships. To learn more, visit www.appsflyer.com.
