How Hotel Marketers Can Successfully Navigate the Sunsetting of Google’s Cost Per Acquisition (CPA) and Similar Commission-based Bidding

Google has recently made a decision to shift away from commission-based bidding models. Starting in April 2024, new hotel ad campaigns will no longer feature these bidding options, and existing campaigns will transition to alternative methods by October 2024.

Google’s commission bidding models allow hoteliers to pay a post-consumption percentage commission instead of an upfront fee.  The Hotel marketers who have traditionally applied lower risk bidding strategies such as Google’s Commissions Per Stay (CPS), Commissions Per Booking (CPB), or Cost Per Acquisition (CPA) will need to consider alternative models.

What does this change mean? 

Some hoteliers and agencies that work with commission bidding will need to consider a shift to alternative models, potentially involving:

• Upfront ad spend commitments
• Increased exposure to risks including booking cancellations
• Exploration of alternate providers, such as Amadeus, that will continue to offer a commission-based model  

Is there any model impact for Amadeus metasearch customers running CPA (Cost Per Acquisition) or CPC (Cost Per Click)? 

No. Google’s change has no impact on the model used by Amadeus’ metasearch customers running Amadeus Metasearch Demand Services on a Cost Per Acquisition (CPA) or Cost per Click (CPC) basis.

Furthermore, the Amadeus metasearch program is fully integrated into iHotelier.  This makes it the best solution for Amadeus iHotelier customers. Given the integration, Amadeus can continue to run CPA campaigns.

Amadeus’ channel bidding algorithms enable seamless proprietary bidding and top-notch performance without any impact to the model selected by our customers.

To maintain this low-risk service, Amadeus will continue allowing our customers to pay per checked-out booking, lowering the risk on metasearch investments.

How should hoteliers start preparing for this change?

Consider shifting to other Google alternatives such as:

• Cost Per Click (CPC) Bidding: Payment for each click with upfront budget allocation.
• Target Return on Ad Spend (ROAS): Establishing performance goals for Google to optimize bids.
• Performance Max for Travel Goals: Implementing multi-channel campaigns for broader reach.
• Commission-based Providers: Despite Google’s shift, commission-based models will continue to be offered by providers like Amadeus.

Amadeus Metasearch Demand Services Customers don’t need to worry about immediate adjustments, as it will continue to offer a CPA model.

Successfully navigating this transition requires hotels to stay well-informed on alternatives and then embrace different bidding models or foster collaborations with hospitality-focused media industry leaders such as Amadeus Hospitality. By doing so, hotels can continue to attract guests through Google’s metasearch while maintaining its desired risk levels.

If you have any questions or concerns about how these changes may affect your metasearch campaigns, contact our dedicated team.

Jennifer Axness Marketing Communications Senior Specialist, Amadeus Hospitality Connect with Jennifer on LinkedIn.