Wednesday, 30 September 2015

Why 'Book on Google' and 'Book on TripAdvisor' Will Be a Nightmare for the Hospitality Industry.

Background: Following the lead of Kayak.com, which has turned itself into a meta-OTA-type of a service for quite some time now, TripAdvisor rolled out their 'Instant Book' feature over the past year or so (now called 'Book on TripAdvisor'), which, at up to 15% commission, is a de facto OTA-like channel.

Recently Google launched a copycat service - 'Book on Google', which is a similar OTA-like / commission-based option in their Hotel Price Ads (HPA) meta search program. 


Now both Google and TripAdvisor are running two parallel tracks within their meta search programs:

A. OTA-type of a program, based on commissions of 15%, where users book on Google or TripAdvisor respectively (“Book on Google” and “Book on TripAdvisor”).

B. Meta search advertising program, based on CPC (cost per click) and advertising budgets, where after they click on the meta listing, the users are sent to the property’s own website booking engine to complete the booking.

We see similar OTA conversions from other smaller meta search players like Hipmunk, Skyscanner, and others.

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