Google has decided to change its hotel positioning strategy through Google Hotel Ads and, from our point of view, we are facing a revolution that seems to benefit the hotel sector.
Let's start with the base explaining that it is a metasearch engine. It is an application that compares the price of the same product or service in different sales channels
. In insurance, electronics and travel the concept is very widespread, and certainly not a passing fad.
Today and in the future, when we want to buy an iPad or contract an insurance, many users go to one of these platforms to compare different purchase options. In the hotel world, it happens the same, we still want to compare prices in different channels
. From here we can distinguish two large, Google and TripAdvisor.
Below, we expose the basic differences between
- Google can make ads without the need to pay a fixed fee, on TripAdvisor you have to be a customer, whose price is calculated online through this address: www.tripadvisor.es/BusinessListings.
- On TripAdvisor you can only bid one amount per click while on Google you can bid an amount per night or even a percentage of the total reservation.
- In favor of TripAdvisor, at this time, we can say that they have the largest base of comments in the world, while Google still has little reviews.
- Google can interact with its customers comprehensively, since it has a search engine, Gmail, Android, Calendar, Google Plus, etc. while TripAdvisor has much less information and channels to segment their offers.
Although we can not forget the OTA, which are the basis of comparison in the metasearch engines. They are the great problem and at the same time solution of the hoteliers, but for that reason we want to explain different evolutions that Google is having to improve this situation
Once we have explained these differences, we want to explain the workings of some Google tools to give greater visibility in any company. Through Google Adwords we can look for a competitive advantage through a better positioning in the search results. However, this situation may change in the hotel sector, since Google is working with great intensity your Google Hotel Ads
, placing it even above the Adwords. This situation is a big change for both users and advertisers.
For those who do not know this option from Google, Hotel Ads are the price comparison that appears when we search for a Hotel.
We can see different examples, that in case we are not working in Google Hotel Ads
, we could not appear nor the user could see the price.
Although there are still many questions that need to be answered, such as if they will increase intermediation costs, how they will impact on the consumption of Adwords or if it will really work and we will be better positioned
, what is clear is that we can not ignore This new Google strategy.
For now, we can put ourselves in 4 different situations
and what would happen in each of them:
- Do not invest in Adwords either in Google Hotel Ads
If what you want is to incentivize your direct sale to increase the benefit of your hotel
you should rethink your distribution strategy online since always You will be at a clear disadvantage compared to other portals. All the portals that commercialize your hotel will appear in a preferred place, both through Adwords and Google Hotel Ads.
- Invest in Adwords and not being in Google Hotel Ads.
As we can see in the following example, Google Hotel Ads has gained in positioning and visibility against the positioning of Adwords. Before this new Google strategy with its Hotel Ads, Adwords ads appeared in the upper left, while those of Hotel Ads on the right, under the Google My Business tab.
Given this new situation, in the case of investing only in Adwords we would be losing visibility to the OTAs, which are bidding for our hotel, both in Adwords and Hotel Ads. This way, we would lose traffic to our website, directly affecting the distribution strategy, since it would increase sales potential through the OTAs.
- Being in Google Hotel Ads and not doing Adwords.
Here the opposite would happen, we would gain visibility and we would be placed in a situation of equality with the OTAs but we would lose positioning below the Hotel Ads module, placing the OTAs in a preferred position in front of our hotels.
What we must consider is that this new strategy is not implemented at 100% of users and at the moment it only affects desktop devices, so if we do not invest in adwords, we would lose visibility in those users that Google Hotel Ads does not show them. in the upper strip and those who perform the search through mobile devices.
- Be for everything: Invest in Adwords and participate in Google Hotel Ads.
Obviously, this is the ideal combination at the level of positioning since it offers a greater showcase for our hotels, but we must define an intelligent strategy to optimize investment through both formats.
There is no doubt that Google Hotel Ads is booming, in parallel it is still working on its adjustments and possible improvements. According to Google itself, through Hotel Ads, hotels can increase direct traffic to their websites, promoting direct sales, thanks to the dissemination of hotel inventory through user searches
It is already true that Google Hotel Ads already represents 65%
of hotel reservations generated through metasearch engines, which represents a 150% growth over last year
, which only represented 26%.
According to experts in this field, they assure that during the last year there has been a great increase in its use
, but that in a mobile device it has still been more relevant, since previously it was not used almost. Right now it is becoming the most relevant meta search engine in the hotel sector.
OTAs adapt quickly to new Google changes and continue to benefit from any type of system alteration. But, after this post, it is unthinkable not to be part of this new tool that Google offers us