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Google’s direct commission-based bookings – 3 things hotels should know

Let’s demystify the big news from Google who has changed its business model for hotel bookings yet again! Google Hotel Finder has been silently sun-setted; Google is now pushing what it calls the Hotel Ads Commission Program. This is an attempt to enter the OTA space however shying away from being an intermediary; rather Google aims to be a facilitator of commission based bookings.

Contrary to the OTA models where the channel “owns” the guest relation, through Google Hotel Ads, hotels will be in full control starting from a guest’s search process to the completed booking. And most importantly, hotels only pay to Google for successful bookings.

Here are 3 things that you should know to make this new platform work for you –

More revenue for small and independent hotels

Everyday millions of people search for various destinations and hotels on Google – that means millions of potential guests for your hotel. In 2013, Google launched its cost-per-click model of Google Hotel Ads which small and independent hotels used to get more direct traffic to their brand.com website. But with this new commission-based model which is similar to TripAdvisor’s Instant Booking feature; Google aims to take out the complexity of the bidding process and charge hotels direct commissions only for completed bookings. This will help hotels confidently use Google as a distribution platform. With over 340 million monthly unique visitors, TripAdvisor’s Instant Booking feature has become a big hit and Google needed to widen its offering to stay in the game – which it has done now with this new development. It’s time for small independent hotels to take the first mover’s advantage and leverage Google’s huge audience base.


Converting guests within the same booking window

Today online consumers want quick information and simpler booking processes – which means they prefer to get information in one place instead of having to look around on different websites. In the Cost per click (CPC) model, guests are re-directed to the hotel website – which takes some time and ultimately frustrates the guest who might not complete the booking process. With the new book on Google, the search engine major facilitates the complete booking process within the same window without the guest having to visit the hotel website. The process is seamless between the hotel, Google and the guest. As soon as a booking is made, the hotel sends a booking confirmation email directly to the guest thereby owning the guest relationship from step one. The hotel also answers post-booking queries and handles changes to the reservation or cancellations.


Booking through multiple devices

Though mobile booking is growing exponentially among online travellers, desktop still holds number one position when it comes to hotel bookings. Perhaps this is the driving force behind Google’s move to launch this feature on desktop and tablet as well besides mobile devices- making it easier for more hotels to participate. Another interesting fact is travellers can avail information about hotel amenities within their search results. This added feature is an upsell opportunity for hoteliers to keep their potential guests updated on all the amenities that the hotel provides including Wi-Fi, free breakfast, parking availability, swimming pool, business centre etc.

With the exit of the Hotel Finder programme, Google is trying to reposition themselves as a ‘big brother’ in the travel industry – and is already becoming a threat to the online travel agents.

Image Credit: Google Blog
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Amazon’s entry to online travel – is that disruption?

As if the entries of Google and TripAdvisor were not enough disruption, we now have Amazon which is entering into hotel distribution. So while buying your books and what nots, you can now go and buy a hotel room from the retail GIANT!
Amazon Local currency has already been selling some limited and wholesaler type hotel programs for a while now. But that was more of a distressed sale kind of an approach they were taking. With the new model, Amazon is asking hotels to publish their rates and availability for a longer period. For hotels, this means hotels can push full price inventories in the peak season, and of course offer discounts when they are desperate.
Does that mean Amazon is now seriously entering into travel services a la Google?  Travel analysts apparently think so.  Expedia CEO has already ‘welcomed Amazon into the party’.
Truth is, as Expedia Inc. CEO Dara Khosrowshahi says, travel today is a trillion dollar global industry. And everyone wants to take a share of the pie. That is why we are seeing TripAdvisor making serious entry to commission based model through TripConnect Instant booking. Wait for Google to make the next move.
Are these changes going to make it more complicated for hoteliers? In my opinion, Amazon, with its marketing capabilities, can become a serious alternative for independent and small hotels. What about TripConnect and Google Direct booking, when they are launched globally?

But as always, your success depends on how well you manage your booking channels. 
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Infographic: eRevMax predicts 2014 to be the year of Meta-search

Previously, hoteliers have primarily focused upon direct marketing and OTAs, but there’s a new player in terms of hotel channel distribution and it looks like it’s here to stay. Meta search is proving hugely popular with the younger generation who, with perhaps tighter budgets than their older counterparts, are more cost conscious when it comes to travel. There has been a 13 percent increase in meta search traffic in the past year alone, with meta search websites such as Kayak processing almost 1600 million queries annually. It is widely suggested that hoteliers begin to amend their marketing strategies to include meta search in a more prominent role.


To access the full infographic, click Meta-search 2014 – It’s here to stay

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eRevMax adds metasearch channels in its distribution offerings

While the concept of Meta search has existed for a number of years, but recently this method of research has become prominent within the travel industry. Following a 13 percent annual growth and a greater number of travellers citing a preference for Metasearch, eRevMax has partnered with World Independent Hotel Promotion (WIHP), to allow users of Connect and RateTiger to expand their visibility across Google Hotel Finder, TripAdvisor, Trivago, Kayak, and WeGo. It is anticipated that this will boost direct bookings, therefore reducing OTA fees. As a result of this partnership, tens of thousands of hotels across the world have been given new and exciting opportunities, according to WIHP VP Martin Soler.

This new partnership will help hotels to increase bookings and revenue for their property, by driving qualified leads from metasearch sites to their own website. This will help them in reducing OTA commissions and improve overall profitability. The advanced tracking available with the service will help hotels to know the exact return on investment for each metasearch channel they are advertising on.
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Why It’s Time to Include Meta Search in Your Distribution Portfolio

Hotels around the globe are being told to prepare for the metasearchera, and that includes changing their marketing strategies, outlook, and software systems to make the transition from solely direct and OTA bookings to direct bookings via travel oriented meta search engines such as TripAdvisor. Meta search is fast becoming the ‘goto’ method of travel booking, up by 13 percent in the past year alone. Why? Not only are the younger generation of travellers more web savvy, but travellers today are also striving to find the best deals to meet strict budgets. Utilising meta search channels isn’t just about staying in the game, it’s about diversifying audiences, increasing visibility, and boosting brand reputation across multiple platforms.

Meta search allows for visitors to book either through OTAs or through the brand website, helping to increase direct sales. Meta search sites such as TripAdvisor have been criticized for favouring OTAs with which they have a partnership, but direct information is available, which is more than can be said for OTAs themselves.

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eRevMax predicts hotel online distribution trends 2014

As technology advances and the world of social media expands, more and more travelers are turning towards smart phones and tablets to book hotel rooms. eRevMax, the leader in hotel online distribution and channel management solution has released an Infographic “Online Hotel Distribution” to provide hoteliers with upcoming trends backed by relevant data.


Travelers who book hotel rooms online are increasingly equipped with smart phones and tablets. The infographic shows 7% of all bookings were generated from mobile and tablet devices in 2013, and this trend will grow by another 20% this year. In 2014, hotel bookings through mobile will contribute over $26 billion.


The eRevMax study sheds light on how metasearch sites realized a 13% increase in 2013. Google Hotel Finder, TripConnect and Trivago are becoming a driving force in hotel online distribution as 60% of travellers shop by comparing rates on these sites. To shift market share from the OTAs to direct bookings, hoteliers should utilize metasearch sites as a part of their overall distrbution strategy as it offers better search experience and allows the traveller to find the lowest prices available online.

Bookings from OTAs surged ahead with a 12% rise in Q3 2013 and now stands at 13% of overall bookings in North America. It also shows that 33% of all bookings take place at the brand’s website, an increase of 5% in Q3 2013. eRevMax suggests hoteliers work with OTAs to increase revenues and implement reputation management solutions for quick responses to their guests.

Another important tip by the hotel solutions provider is to leverage the billboard effect, defined as the increase in offline bookings of a property when it is listed with an Online Travel Agency (OTA). An experiment conducted by Cornell University observed that one of the participant hotels experienced an impressive 14% increase in direct bookings when it contracted with an OTA. Besides, Average Daily Rate (ADR) increased by 1.5% during OTA listing of the same property. 

In this world of social media, SEO and analytics, failure to adopt digital platforms in their marketing strategy is suicidal for hotels. The data shows that 81% of tech-savvy travellers find user reviews important, while 49% travellers book hotel only after reading reviews. Nearly 21% used Facebook to search for hotel information at least once while 14% of travellers use the Facebook platform to book a hotel room. Hence, it is imperative that hotels take social-commerce seriously. 

To access the full infographic, click Infographic: Online Hotel Distribution 2014