Key changes and implications
- Search page changes on Google:
- Organic results are less visible by moving to the bottom of the page.
- A new ‘places’ block emphasises OTAs and meta search engines more.
- Performance of hotels:
- Organic traffic to hotel websites dropped significantly.
- Increase in paid traffic: The share of direct revenue from paid Google campaigns increased significantly.
- Increased reliance on intermediaries:
- A shift in the channel distribution mix, with a growing market share for OTA sales at the expense of direct bookings.
Strategies for hoteliers:
- Data analytics: Continue to closely monitor changes in website traffic, booking revenue and distribution costs.
- Increase spending on digital marketing: Invest more in paid advertising, especially for brand protection.
- Work with digital marketing agencies: Work with partners who are experts and have access to up-to-date information, such as Google Premier Partners.
Recent developments and prospects:
- The implementation of the DMA has led to a 30% drop in clicks and bookings on Google Hotel Ads in markets where the DMA is in force.
- The shifts are likely to be permanent, with a continued increase in OTA visibility at the expense of direct hotel bookings.
Conclusion
The DMA may unintentionally favour larger US companies such as Expedia and Booking Holdings, to the detriment of the European hotel industry. Hoteliers are advised to adjust their strategies and remain actively involved in updates to maintain their competitive position.
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