As of February 20, 2025, Google ended commission-based bidding for hotel ads. Previously, hotels paid only when a booking was made. Now, they must pay upfront for clicks (CPC) or set a revenue target (tROAS), increasing financial risk.
Key Changes:
- No More Commission-Based Bidding – Hotels lose the low-risk, pay-after-booking model.
- Upfront Payment Required – Costs accrue before revenue, requiring careful budget management.
- Privacy-Driven Shift – Google prioritizes first-party data due to stricter privacy laws.
How to Adapt:
- Use First-Party Data – Collect and analyse guest info for better marketing.
- Increase Direct Bookings – Enhance booking platforms to reduce OTA reliance.
- Optimise Ads – Focus on strategies to maximise return visits.
Device Usage =
Optimise for mobile if most bookings come from phones.
Using these insights, hotels can refine marketing, increase direct bookings, and boost revenue.