Focus on Strategy Change The Digital Markets Act as a Turning Point for Hoteliers in the Fight for Online Visibility
The Digital Markets Act (DMA), also known as the law on digital markets, was introduced to create a new regulation for particularly powerful digital platforms. Its aim is to ensure more transparency and competition in digital markets and to guarantee fairness between platform operators and users.
What initially sounded promising has proven to be disadvantageous for individual hotels in practice. On the contrary, the new regulations have even led to increased visibility for the online travel agency giant Booking.com, which increasingly threatens the existence of smaller hotels.
Introduction: 1. What is the Digital Markets Act?
The Digital Markets Act (DMA), also known as the Act on Digital Markets, was introduced on 7 March 2024 to create new regulations for particularly powerful digital platforms.
The DMA is a legislative framework aimed at regulating the market power of dominant platforms (so-called "gatekeepers") and creating fairer competitive conditions in the digital market. For example, gatekeepers like Google are no longer allowed to favour their own products and services, manipulate search engine results, or process user data without their consent.
The aim of the DMA is to ensure more transparency and competition in digital markets. It is intended to provide fairness in the relationship between overpowering platform operators and their commercial as well as private users.
The impact on the digital marketing of hotel accommodations on Google is already noticeable.
- The Google Travel interface is no longer directly visible in the search results and now requires some additional steps to access the results. This will significantly decrease the relevance of Google Travel.
- Users can no longer click directly on the Google Maps map in the search results to see the location of hotels. Searching for the location of hotels now requires a longer route through multiple clicks, which affects usability.
- The map in a hotel's business profile (Google My Business profile), which previously displayed the geographical location, is no longer interactive. Finding the hotel's location now requires several clicks.
- In Google Reviews, Google must now also display reviews from other platforms such as Tripadvisor or Booking.com as a "gatekeeper." This will further increase the presence of Booking.com on Google.
- The Google Hotel Price Ads appear in the search results as a narrow hotel carousel. Here too, the clear superiority of Booking.com is evident.
3. The Impact on the Visibility and Marketing of Hotel Websites with Google Hotel Ads
Since the adjustments to Gootel Hotel Ads by the DMA, hotels have increasingly observed negative impacts:
- There has been a 30% decline in clicks to hotel websites in the markets affected by the DMA.
- There has been a 36% decline in direct bookings in the markets affected by the DMA.
Current analyses show that the difference in clicks in the DMA markets is offset by those who have gained visibility and prominence through new representation, such as Booking.com and other OTAs.
Despite the challenges, the Digital Markets Act also offers opportunities for hotels to optimise their online presence and target their audience more effectively.
4. Opportunities for Hotels through the Digital Markets Act
In light of these developments, the DMA could indeed bring about a significant change in the hotel industry's approach to direct booking strategies. In an environment where "gatekeepers" can no longer employ potentially unfair practices, hotels can significantly benefit in terms of customer loyalty and direct interaction.
It is therefore important to engage early with the potential impacts and develop adaptation strategies to seize opportunities and minimise risks.
Against the backdrop of limited and less effective advertising options with Google Hotel Ads, as well as the increasing dominance of OTAs, it is becoming increasingly important for hotels to turn to alternative marketing channels to enhance their visibility in search engines.
Some innovative strategies to improve presence in search results and increase direct bookings include:
- Search Engine Advertising (SEA) with Google Ads
- Search Engine Optimisation (SEO)
- Implementation of a powerful IBE
- Optimisation and integration of high-quality content (Content Marketing)
- Increased presence on social media
- Targeted advertising strategies for specific audiences
6. Conclusion: The Future of Digital Hotel Advertising under the Influence of the Digital Markets Act
By implementing suitable marketing strategies, hotels have the opportunity to seize new chances. The direct connection between the Digital Markets Act and Google Hotel Ads requires hotels to develop their own advertising strategies within the Google Search Network to increase direct bookings on their website.
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Sources
- https://support.google.com/hotelprices/answer/9238461?hl=en
- https://www.roomcloud.net/en/google-hotel-price-ads/
- https://blog.hubspot.com/marketing/google-hotel-ads
- https://www.verbraucherzentrale.de/wissen/digitale-welt/onlinedienste/digitale-dienste-was-regelt-der-digital-markets-act-93970
- Comparison of traffic volume from 3450 hotels between DMA and non-DMA markets from 01.01.24 to 22.04.24. Link: https://www.mirai.com/blog/dma-implementation-sinks-30-of-clicks-and-bookings-on-google-hotel-ads/