Skift Research conducted an analysis of the distribution channels competing for hotel bookings on Google Hotels by web-scraping over 20,000 hotel listings in various regions. They collected data points to determine which online travel agencies (OTAs) and direct sites are bidding for bookings on both Google’s sponsored results and organic auction. Booking Holdings and Expedia Group were found to dominate Google’s sponsored results in every region, with Booking.com being the most visible OTA across all regions.
Despite Booking.com’s frequent appearance in sponsored results, Expedia.com is investing ad dollars to be the top option in regions like Asia Pacific and the Middle East & Africa, aiming to outcompete Booking.com outside their home markets. Google’s organic auction places priority on direct sites in every region, although they appear less frequently in Asia and the Middle East & Africa due to the fragmented hotel supply market in those regions. Notably, Google prioritizes direct sites over OTAs in the organic auction, showcasing their role in driving direct bookings.
The analysis also found that the more branded the hotel supply, the lower the price parity displayed in Google’s organic results. Hotels in Europe and the Middle East & Africa exhibit greater price parity compared to Asia Pacific and the U.S. This is attributed to large branded chains in the U.S. having negotiating power with OTAs to offer exclusive rates, while smaller independent hotels in Europe and the Middle East & Africa rely more on OTAs for distribution.
The report provides further insights into the underlying hotel industry in each region, including the mix of branded versus independent hotel supply and the market share of OTAs versus direct sites. It also includes an analysis of marketing spend efficiency from Booking and Expedia on sponsored results, as well as price parity across distribution channels in each region. Readers can access the full report for a comprehensive analysis of Google Hotels, including additional charts that provide key insights into the competition for hotel bookings on the platform.
For those interested in exploring further analysis of the dataset, the author, Pranavi Agarwal, can be contacted via LinkedIn or email. Skift Research Reports offer in-depth analysis of various topics in the travel industry, providing valuable insights for decision-makers. Subscribers gain access to a wealth of reports, analyst sessions, and data sheets on a range of topics, from technology to marketing strategy, allowing them to stay informed on the latest trends and disruptions in the travel sector.
