Boost direct bookings on your website: Everything you need to know about Google Hotel Ads and the CPA pricing model

David Madrigal, operations manager at Paraty Tech

 What is Google Hotel Ads?

Google Hotel Ads is an ad management platform exclusive for hotels that showcases your establishment on Google.com and Google Maps.

With Google Hotel Ads, travellers can book directly on your website. This allows you to control the entire process.

How is the user experience?

The user experience will depend on their search criteria. For a generic search like “hotels in Madrid” Google will display a section with a list of hotels that may meet the needs of the traveller. However, a specific search by name of the establishment will provide a complete Hotel Details Card on the left or right side of the page.

CPA and CPC PRICING MODELS

How much does it cost?

Google offers several payment models in order for you to participate in the Google Hotel Ads program. Yet you should bear in mind that Google will improve your positioning based on two variables: the price of your hotel and your bids.

Cost per acquisition (CPA)

• There is no initial investment.
• In the CPA pricing model, a commission is only paid for confirmed bookings, excluding cancellations and no-shows.
• Payments are made a month after the Check-Out has been registered.
• Commissions vary between 10% and 15% (at your discretion).
• Campaigns normally start at 10% and may be adjusted according to the performance of the campaign.

 Cost per click (CPC)

• The payment is made per click and not by acquisition as in the previous case. Cancellations or no-shows are not taken into account.
• You set the maximum amount you want to pay for each click and Google chooses the winning option through the auction system.

Which option should I choose?

The best option will always be the one that offers you a better positioning at the lowest cost. You should consider the price of your rooms, the number of cancellations, and the average stay. YOUR OBJECTIVE IS TO CALCULATE WHETHER THE CPC MODEL OFFERS YOU THE OPTION OF A COMMISSION BELOW THE FIXED MINIMUM OF 10%.

As a general rule, establishments with higher prices, longer average stays and a low number of cancellations must opt for the CPC model.

MANAGING A CPA PRICING MODEL

 How do I manage a CPA model?

The main requirement is an authorised integration partner to help you manage your campaign.

The role of the partner is to transfer hotel information to Google in real time (price, promotions, availability, etc.).

PARATY TECH IS AN AUTHORISED INTEGRATION PARTNER.

How is the commission paid?

• Google will send a detailed breakdown of the bookings to Paraty. It will include the stays of the previous month.
• Paraty will immediately send the report to the hotel in order for them to reconcile the account.
• Once the breakdown has been verified, Paraty will pay the invoice to Google. Subsequently, these commissions will be billed to the hotel.

REMEMBER THAT YOU HAVE 10 DAYS TO REVIEW YOUR BOOKINGS.

How do we know that a booking was made through Google Hotel Ads? How can we see it in the statistics and in the bookings?

• Searches made by a user through Google ads come with a cookie that will remain active throughout the booking process.
• At this stage, the conversion code installed in our engine is executed and the booking is considered as a Google Hotel Ads conversion.
• The customer can find the conversions in “my bookings” identified as “hotelads”. In the daily ”no availability” emails, searches made through these ads will also be identified as “hotelads”.

What happens with cancellations, no-shows and modified bookings?

Cancellations and no-shows: If the user cancels through the establishment’s website, Paraty will report it directly to Google and the commission will not be charged. In the case of a no-show or a cancellation by other means, the hotel must indicate it in the monthly booking review. Paraty will report it to Google and the commission will not be charged.

Modified bookings: The booking modifications will be stated in the monthly review. Paraty will report such modifications to Google and charge the commission based on the modified value.

 How can I see the monthly result of the campaign?

Every month, a detailed report is sent regarding the Google Hotel Ads campaign. If you are investing in Google Adwords as well, both reports will be sent together.