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Google Adwords Hotel Search Changes From PPC To Booking Fee Model

In a move designed to get more buy in from the hospitality industry, Google Adwords changed the revenue model for hotel search ads. Previously, under the pay per click model, hotel's large and small competed against each other to bid for the top ad spots and paid for each click on their ads, regardless of booking.

Now Adwords is rolling out the Google Hotel Ads Commission program to more hotels, after a successful test period with a limited number of independent hotels. This revenue model ensures that Hotels are only charged a booking fee once a user pays for a room, rather than being focused on ad clicks.

Booking industry expert Scott Koehler speaks to the success of this program.

"Since March, hotels enrolled in TravelClick’s Demand Services program have seen, on average, a 56 percent year-over-year increase in revenue driven by Google Hotel Ads. The evolution from a pay-per-click to commission model has increased hotel revenue."

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