Google DMA Updates Impacting Hotel Search

"By removing the commission-based ads model, Google is effectively pushing small hotels into a high-stakes, pay-per-click (PPC) system that demands technical know-how and upfront investment with no guarantee of return. Worse, the independent hotels that once held prime positions on Google Hotel Ads and Google Maps now find themselves buried beneath big-spending OTAs and major chains." "Furthermore, hotels’ share of direct bookings decreased by six per cent while OTA reliance grew by four per cent and the number of “free bookings” via Google Hotel Ads remained flat at around 0.5 per cent of total bookings." "Google’s decision to end its commission model wasn’t made in a vacuum. It was a response to the EU’s Digital Markets Act (#DMA), enforced in March 2024, and the UK’s Digital Markets, Competition, and Consumers Act (#DMCCA), introduced by the last Conservative government, effective January 2025. These laws were designed to curb the power of digital '#gatekeepers' like Google, Amazon, and Booking.com by ensuring fair competition, transparent digital marketing practices and protecting consumer rights. Yet, the outcome has been the opposite for independent hotels. By pushing them into a riskier, more expensive digital advertising model, Google has effectively strengthened the dominance of the very OTAs and travel giants the legislation aimed to rein in." HOTREC – Hotels, Restaurants, Bars & Cafés in Europe

D-EDGE Hospitality Solutions's findings have confirmed what I've observed with my clients. While regulators have good intentions, their execution often exacerbates the issues. This happened with the 2015 #LawMacron" (removing rate parity clauses from contracts between #hoteliers and #OTAs in most European countries), which led to rampant rate leakage, and it's happening again with the #DMA. I've written about this, discussed it with colleagues at Mirai and Cendyn, and concluded that the #DMA, especially with the introduction of #SGE, could even spell the end of #metasearch #advertising for #hotels. Unfortunately, the impact is even worse than I anticipated. According to D-EDGE: - Organic traffic to brand[dot]com websites has dropped by 20%. - Revenue from Google free booking links (#FBL) fell by 32%. - Organic links are less visible, appearing lower in search results. - Direct revenue from paid Google campaigns increased from 34% to 43%. - Direct distribution costs rose by 18%. - Market share of direct bookings dropped by 4.3%. - #OTA market share grew to 62.7%. As I predicted, the DMA paradoxically benefits gatekeepers like Google and OTAs, not the hotels. Will we ever learn? Regulations can only be effective if developed with input from industry professionals. In 2015, I assembled a group of professionals willing to collaborate for free on revising the anti-rate parity clause, and I'm ready to do it again. DMA, the #EUAIAct, #GDPR, Law Macron—all of these regulations were disasters from the start and negatively impacted businesses. Isn't it time we approach this differently? Hospitality Net

“Let’s promote the middlemen!” said no hotel, ever. Except maybe Google, apparently. This week, in a bid to comply with the EU’s Digital Markets Act, Google proposed a new search display model that prioritizes digital intermediaries like Booking.com and Kelkoo over direct hotel listings. You can be sure that if this was about Airlines – we would have heard about it LOUD AND CLEAR. So why not hotels? Is this happening? Yes, really. In a world where every hotelier worth her/his salt is fighting tooth and nail for direct bookings, Google has effectively decided that the platforms charging 15–25% commissions deserve more visibility than the providers of the actual product. Why? Because their lawyers (and probably their lobbyists) think this satisfies Brussels. But let’s pause and ask: What were they thinking? Hotels report up to 30% drops in direct traffic. OTAs cheer. Intermediaries thrive. Users? They now have to dig deeper to find the real source. This isn’t “user-first” design. It’s algorithmic compliance theatre (OK so that’s a tongue twister but humour me here). And it’s déjà vu for those of us who remember the Google Flights saga, the Hotel Ads reshuffles, and every attempt to blur the line between “free” and “paid” content. IMHO we need to be clear: this isn’t DMA compliance—it’s distortion dressed up as something else. Real compliance would empower the supplier, not rewire the funnel in favor of whoever sits between the buyer and seller. Curious: Should the EU go further and mandate a “direct source first” principle? Or have we just accepted that the gatekeeper defines the game board? (Answers on a postcard please or below if you fancy). #TravelTech #HotelDistribution #DMA #GoogleSearch #DirectBookings #Intermediaries #DigitalMarketsAct #Skift #PhocusWire #Regulation #OTA #SearchFairness #BookingBias #UserExperience #InnovationOrInterference https://lnkd.in/gsm-d8Zm