PPC for Hotels | Google Ads for Hotels

PPC for Hotels | Google Ads for Hotels

Hotels and other accommodation providers definitely need to consider running ads to their own properties.

The main benefit of PPC for hotels is that you’re able to quickly generate room bookings while reducing your OTA commissions. 

For many properties, pay per click ads are the most effective way at generating more bookings for your property, through your website.

It’s one of the best hotel marketing strategies to take advantage of if you want to quickly fill your pipeline and you have enough budget to do so.

In this post we’re going to provide you with a quick overview of PPC for hotels and how your business will benefit from it.

If you’re interested in us handling your PPC campaigns or if you want a PPC audit, don’t hesitate to reach out over on our contact page.

What is a Hotel PPC/Google Ads Campaign?

PPC stands for pay-per-click and it’s one of the most popular forms of paid search marketing. It works by targeting specific keywords and audiences to promote your hotel website to people searching for accommodation online.

Every PPC campaign is designed to drive relevant traffic to your website and your website landing pages.

For example, if you’re looking to increase room bookings or boost your hotel lead generation, you would run an ad campaign targeting people looking for hotels in your local area.

Paid traffic is one of the most cost-effective ways of driving relevant traffic to your hotel website.

Once you have enough data, you’re able to accurately target potential travelers that are interested and likely to book a room at your hotel. 

Does PPC Work For Hotels?

Yes, pay-per-click campaigns definitely work for hotels and other accommodation businesses.

With a streamlined campaign, you can typically expect at least a 400% return on ad spend.

This means you’ll be generating $4 in revenue for every $1 you spend on ads.

While it’s possible to increase this number, even significantly in many cases, the 4:1 ratio is the benchmark that’s worth aiming for. 

Hotels that aren’t taking advantage of pay-per-click marketing are leaving a lot of revenue on the table, especially if they’re not able to fill their rooms on a regular basis.

Combined with SEO for hotels, PPC is the golden goose for generating bookings and filling rooms without relying on social media or organic search.

How Google Ads Works For Your Hotel

Ever wondered how Google Hotel Ads function? Here’s the breakdown:

  1. User Search: When a user searches for hotels in a specific destination on Google, a hotel search box appears right below the Google Ads. The user can click on a listed hotel, hit the ‘View all hotels’ button, or adjust search criteria with new dates and filters.
  2. Hotel Listing Click: If the user clicks on a hotel listing, they’re directed to the hotel’s Google My Business page. Here, they’ll find information about the property or vacation rental, along with a list of booking sources and available rates. Google Hotel Ads usually lead the list, followed by unpaid (organic) listings.
  3. Direct Hotel Search: When a user directly searches for a hotel’s name on Google, the hotel’s knowledge panel pops up on the right side (or below Google Ads on mobile). It showcases booking sources and rates.

Setting Up Google Hotel Ads:

Hotels can choose from two booking models:

a. Cost-per-Click (CPC) Model: Users clicking the hotel’s GHA link are sent to the hotel’s website booking engine. The hotel pays Google a fee for each click, irrespective of whether it leads to a booking, based on predetermined bidding parameters. This is also known as the metasearch model.

b. Commission Model: Users have the option to book directly on Google, with the hotel paying a commission to Google based on agreed-upon commission rates. The hotel is charged only when a guest stay is completed, similar to the online travel agency (OTA) model.

It’s worth noting that most hotels and OTAs prefer the CPC model, making Google Hotel Ads primarily a metasearch platform.

This platform displays rates and availability from various OTAs and booking providers, simplifying travelers’ ability to compare a hotel’s pricing across the web on a single page.

The Benefits of Google Ads for Hotels

Using Google Ads for hotels brings a host of benefits to independent hotels, offering opportunities to:

  • Boost revenue: The primary motivation behind embracing Google Hotel Ads is the potential to secure more bookings and revenue at a lower cost compared to other distribution channels.
  • Enhance visibility: Your property gains increased exposure in Google Search and Maps, platforms teeming with travelers actively planning their trips to your destination.
  • Compete with OTAs: Google Hotel Ads often feature OTAs prominently. By taking part, you can entice travel planners away from OTAs, secure valuable direct bookings, and reduce commission expenses.
  • Take charge of relationships: In contrast to OTAs, which withhold guest contact details with bookings, direct bookings empower you to collect contact information during reservations. This allows you to initiate relationships with potential guests right away, sending confirmation emails and pre-check-in messages, inviting them to plan their stay.
  • Upsell opportunities: When travelers book via your website, you gain greater control over the booking experience. You can spotlight higher-category room options, exclusive packages, and unique amenities that may not be accessible through OTAs. Through pre-stay communications, you can extend special offers, encouraging room upgrades, extended stays, pre-ordered amenities, or restaurant reservations.
  • Target active trip planners: Google Hotel Ads are displayed only when your property has available rooms for the specified booking dates, ensuring you only pay for clicks when you can accommodate guests.

Google Ads for hotels is a powerful tool that can transform your hospitality business. By utilizing Google Ads, you can increase your hotel’s online visibility, reach a wider audience, and drive more direct bookings.

With tailored ad campaigns and the ability to target specific demographics, interests, and geographical locations, you’ll maximize your return on investment while staying competitive in the ever-evolving hospitality industry.

How to Improve Your Google Ads Strategy for Your Hotel

If you want to make the most of your investment in Google Ads, these strategies are your key to success:

  1. Elevate the Booking Experience: Ensure a high conversion rate by simplifying your booking engine and website. Featuring quality photos, clear descriptions, and showcasing your property’s unique amenities and benefits will captivate potential guests.
  2. Embrace Mobile-Friendliness: Recognize the importance of mobile devices in trip planning. Make sure your website and booking engine have a responsive design to accommodate users on all devices. Regularly testing your site from a traveler’s perspective is crucial.
  3. Offer a Best-Rate Guarantee: Prevent visitors from searching for better deals elsewhere. Instill confidence by prominently displaying a best-rate guarantee, coupled with enticing incentives for direct bookings.
  4. Maintain Rate Parity: Consistency is key in attracting direct bookings. Your direct rates should either match or surpass those on OTAs and other channels. Even a slight price difference can sway traveler decisions. Utilize a channel manager to ensure rate parity across all platforms.
  5. Optimize Your Google Business Profile: Your Google My Business (GMB) listing holds as much significance as your website and OTA profiles. Keep it complete and up-to-date with accurate information, captivating photos, and amenities details. Your Google rating impacts visibility and conversions, so actively engage with reviews and strive to earn those coveted five-star ratings.
  6. Monitor ROI Vigilantly: While you can set a daily budget, keep a watchful eye on cost-per-click fees that can accumulate quickly. Bookings aren’t guaranteed, so closely track the cost per acquisition and compare the ROI of your search ads with other distribution channels to ensure optimal results.

To enhance your Google Ads strategy for your hotel, focus on refining your targeting, utilizing compelling ad copy, and optimizing your landing pages.

By narrowing your audience, crafting engaging ad content, and providing a seamless booking experience, you can maximize the effectiveness of your Google Ads campaign and drive more bookings for your hotel.

Hey! I'm Alexander - the founder of Wizard of Tourism!

About the author

Alexander has been working with business in the travel and tourism industries since 2012. With over a decade of experience, Alexander and Wizard of Tourism strive to help those in the travel industry grow their business online.