Google Hotel Ads’ Sunsets Commission-Based Bidding, Now What?

On February 20th, Google officially sunset its commission-based bidding strategy for Google Hotel Ads, leaving properties across the globe faced with the difficult decision of whether or not to fund their own Google Hotel Ads program or go dark and let the OTAs gobble up revenue share. What if there were a better option?

Our team dives into what hoteliers can do now that this bidding model is no longer available. Learn what this means for your property below. 

Shift from Commission-Based to PPC Models

Previously, Google Hotel Ads operated on a commission-based framework, allowing hotels to pay a percentage of bookings generated through the platform. This model was advantageous for independent hotels with limited marketing budgets, as costs were directly tied to actual bookings.

However, Google's move to a PPC model means hotels running these campaigns via Google now incur costs based on ad clicks, regardless of whether these clicks convert into bookings. This shift necessitates a more strategic approach to bidding and budget management, as ineffective campaigns can lead to increased expenses without guaranteed returns.

What to Do If Your Hotel Lost Its Commission-Based Hotel Ads Model

If your hotel recently lost the ability to utilize a pay-per-stay commission-based hotel ads campaign model, there are still options you can consider. 

Option 1. Shift to Budget and CPC Based Hotel Ad Campaign Management

One option is shifting towards a media spend and cost-per-click campaign strategy. With this option, hoteliers are now left to fund and their campaign media budgets and shift to a cost-per-click bid strategy. This shift demands a more sophisticated and data-driven approach to ensure marketing spend translates into actual bookings. Compared to commission-based hotel ads campaign models, this option translates into more risk of spending on clicks that don’t convert if not managed properly.

Option 2: Continue to Run a Pay-Per-Stay Commission Model

Despite Google’s policy change, there is still an option for independent hotels looking for a hotel ads commission-based model approach. Metadesk still offers a pay-per-stay commission model, which means hotels can avoid the risks associated with PPC spending. Metadesk takes care of all the startup costs, media spend, and campaign management, ensuring that hoteliers only pay a variable commission based on actualized revenue.

For those looking for a more cost-effective solution, Metadesk’s Pay Per Stay model – Metadesk Pro – offers a smart alternative that aligns marketing expenses directly with bookings.

Google's shift to a PPC model in hotel advertising presents both challenges and opportunities. Independent hotels must proactively adjust their marketing strategies to effectively navigate this new landscape. 

Hoteliers can mitigate risks by adopting targeted bidding strategies, diversifying distribution channels, and enhancing direct booking capabilities and continue to thrive in an increasingly competitive environment. Solutions like Metadesk Pro provide a viable alternative for those seeking a commission-based approach, keeping marketing costs aligned with revenue.

The Good News – A CPA Model is Still Available

Regardless of which option you choose moving forward, Metadesk can help. Ready to take action on a commission-based or pay-per-stay model? Contact the hotel metasearch management experts.