Aug
6
Changes to the way Google manages adwords bidding will change the online landscape for hotels.
The relaxation of brand related keyword bidding means that - yet again - the online travel agents will take ownership of the high ground.
Some industry professionals are recommending you mount your own Google Adwords campain based on keywords related to your own brand. Stating that it will work out cheaper than the cost of commission on OTA sourced room sales. Of course, their approach is slightly coloured by the fact that many of them actually sell Adwords campaign management services.
Here's a few points for you to consider before you take the Adwords plunge. It may be that the OTA becomes your friend in all this turmoil...
The relaxation of brand related keyword bidding means that - yet again - the online travel agents will take ownership of the high ground.
Some industry professionals are recommending you mount your own Google Adwords campain based on keywords related to your own brand. Stating that it will work out cheaper than the cost of commission on OTA sourced room sales. Of course, their approach is slightly coloured by the fact that many of them actually sell Adwords campaign management services.
Here's a few points for you to consider before you take the Adwords plunge. It may be that the OTA becomes your friend in all this turmoil...
1. How good is your website at actually SELLING to people? What is the ratio of "lookers" to "bookers"? If it's less than 6%, you may want to keep your adwords budget in your pocket.
2. What is your average online booking value? The lower this figure, the less you'll want to engage in an adwords campaign.
3. Where will the Adword ad point the clicks to your website? If it's not to a dedicated landing page which shares and reinforces the key phrases the visitor used in the first place - forget it.
4. Are people REALLY going to search on Google using a keyphrase related to your hotel brand or hotel name? If they've never been to your town before and don't know your hotel from a hole in the ground, how are they going to know what your hotel is called?
5. A click through from an adwords ad is not a sale. How many clicks will it take to make a booking?
6. How much will each ad click cost? Remember that keyword bidding is a very competitive process. Do you really think you have deeper pockets than Expedia?
7. Do you have suitable methods of retaining a customer? Lifetime value of the customer is what matters here. If you're really good at encouraging repeat purchases, you should consider using Adwords for customer capture. If you're not good at this or if there is low likelihood of a repeat purchase, why go to all the effort?
8. Potential buyers will use OTA websites to select a shortlist of hotels. If you don't maintain a presence on these websites, new visitors won't know you exist.
9. OTA's will be all geared up to provide Google with vast amounts of data about your hotel using XML feeds based on the data you provide to them in the first place. This is what you pay your commission for. If you have a grip on all the necessary technology to compete in what is going to be a rapidly changing marketplace (see my previous posts on this topic) then go ahead, get your adwords budget together. Then work out how much all the other technology is going to cost you...
10. Consider using the OTA's to your advantage. Sure, the commission is often criminally high (15% is reasonable, those charging 20%+ are asking a lot...) but these organisations are going to own the route to the customer. You can still use them to gain sales.
2. What is your average online booking value? The lower this figure, the less you'll want to engage in an adwords campaign.
3. Where will the Adword ad point the clicks to your website? If it's not to a dedicated landing page which shares and reinforces the key phrases the visitor used in the first place - forget it.
4. Are people REALLY going to search on Google using a keyphrase related to your hotel brand or hotel name? If they've never been to your town before and don't know your hotel from a hole in the ground, how are they going to know what your hotel is called?
5. A click through from an adwords ad is not a sale. How many clicks will it take to make a booking?
6. How much will each ad click cost? Remember that keyword bidding is a very competitive process. Do you really think you have deeper pockets than Expedia?
7. Do you have suitable methods of retaining a customer? Lifetime value of the customer is what matters here. If you're really good at encouraging repeat purchases, you should consider using Adwords for customer capture. If you're not good at this or if there is low likelihood of a repeat purchase, why go to all the effort?
8. Potential buyers will use OTA websites to select a shortlist of hotels. If you don't maintain a presence on these websites, new visitors won't know you exist.
9. OTA's will be all geared up to provide Google with vast amounts of data about your hotel using XML feeds based on the data you provide to them in the first place. This is what you pay your commission for. If you have a grip on all the necessary technology to compete in what is going to be a rapidly changing marketplace (see my previous posts on this topic) then go ahead, get your adwords budget together. Then work out how much all the other technology is going to cost you...
10. Consider using the OTA's to your advantage. Sure, the commission is often criminally high (15% is reasonable, those charging 20%+ are asking a lot...) but these organisations are going to own the route to the customer. You can still use them to gain sales.
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