Advertising is Changing
What we suspected for some time Google is adding commission based payment.Now Google adds bookings to its hotel finder paving the way for the worlds largest search engine to become the latest Online travel Agent (OTA).
It is clear that advertisers are demanding more accountability and the old pay for ads or pay for click is not the absolute measure. Ad managers have a hard time figure the ROI on a click. Commissions on the other hand are eminently trackable. And now its on line with Google. A bold move in that puts it in conflict their biggest customers the OTAS, who have long been afraid that Google will one day compete with them for delivering booking and not just leads to hotels and tourism operators. It is estimated that Expedia Inc and Priceline Group account for approx 5% of Google advertising income.
Googles Conflict with OTAs
This move is similar to the one by TripAdvisor which has been rolling out Instant Booking, that keep users within its interface using it preferred suppliers or partner systems for close the booking. Many OTAs have not played along with TA and Google will face similar challenges.
“None of the major US hotel chains appears to be participating in Google’s scheme so far — with only independents popping up in Tnooz searches. TripAdvisor has struggled, only landing Marriott, Choice and Accor so far.” ..Tnooz.
Sabre Hospitality Solutions, with more than 20,000 independent hotel customers added that
“We are powering the backend only for our hotel customers.”
How Google Books Hotels Works
As the Hotelmarketing Explains: “The Google Hotel Ads Commission Program combines the benefits and reach of Google Hotel Ads with the hotels’ existing commission programs by making the hotels’ best available retail rates searchable and bookable on Google. When travelers search for a hotel on Google Search, Google Maps or Google+, they will be able to select the property and rate they want, and then book the room directly with the hotel without ever leaving the page, reducing the abandonment rate commonly seen when consumers have to switch sites to complete a transaction.”
History of Google Hotel Finder
We will add a new video whowing the recent changes and its implications. The last update on hotelfinder is helpful in this contect.