In the world of modern hotel marketing, the two main channels that are often used to get reservations are Google Hotel Ads and Online Travel Agents (OTAs) such as Booking.com, Agoda, and Traveloka. But between the two, which is more profitable for your hotel or glamping business?
Ecommerceloka will discuss in depth the advantages and disadvantages of each, as well as how hotel owners can maximize both to increase direct bookings and the efficiency of your hotel's ecommerce.
What is Google Hotel Ads?
Google Hotel Ads is a paid advertising feature from Google that allows hotels to appear in Google search results and Google Maps, complete with prices, photos, ratings, and a "book now" button that can be directed directly to the hotel's website.
Advantages of Google Hotel Ads:
Direct to hotel website (direct booking)
Lower commission fees compared to OTAs
Full control over brand, price, and user experience
Integrated with Google Maps & local search
Targetable based on user location, time, and device
Disadvantages of Google Hotel Ads:
Need an optimized and mobile-friendly hotel website
Need a compatible booking engine system
Must actively manage ads and bidding
Not all hotel owners have the time or energy to manage it
What is an OTA (Online Travel Agent)?
OTAs are online distribution platforms such as Booking.com, Agoda, Expedia, and Traveloka that help sell hotel rooms to potential guests around the world.
OTA advantages:
Wide market reach
Promotion system and algorithms help to appear to relevant audiences
No need to pay up front (commission model after guest stay)
24/7 customer service support and established system
OTA disadvantages:
High commission (can reach 15-25%)
Competition is very tight within the platform
Lack of control over branding and customer data
Difficult to increase direct bookings because guests are used to booking through OTA
If you want to increase profits and build a long-term customer database, then Google Hotel Ads is more profitable. But if you still want to get instant traffic without much technical effort, OTA is still the fastest solution.
The best strategy for hotel ecommerce is not to rely on just one channel. Use OTA to build your presence, then direct repeat guests or new guests to your website with Google Hotel Ads.
With the support of professional services such as ecommerceloka, you can manage both channels efficiently, starting from setting up Google Hotel Ads, optimizing OTAs, to integrating booking engines that encourage direct bookings.