The introduction of the EU’s Digital Markets Act (DMA) has brought profound changes to the digital market and thus also the hospitality industry. With the DMA, an important step towards creating a fairer and more competitive digital market situation in the EU has been taken. In the center of the regulations are the companies classified as “gatekeepers” such as Google, Facebook or booking.com. The companies are subject to new obligations and prohibitions to prevent competitive advantages.
In addition to booking.com, the global market leader Google has also been regulated by the DMA. With the new regulations for Google, hotels have accordingly hoped for considerable benefits. However, the reality currently shows a different picture: the hoped-for changes, such as the improvement of their own visibility, have not come about on their own.
The digital market is in a period of transformation and the current situation offers great opportunities for the hotel industry, especially in the long term. Provided that they are actively used: Now is the right time to take advantage of the current developments in order to remain competitive in the long term.
In addition to booking.com, the global market leader Google has also been regulated by the DMA. With the new regulations for Google, hotels have accordingly hoped for considerable benefits. However, the reality currently shows a different picture: the hoped-for changes, such as the improvement of their own visibility, have not come about on their own.
20% decrease in organic traffic to hotel websites
- Analysis by D-EDGE, 2024
The digital market is in a period of transformation and the current situation offers great opportunities for the hotel industry, especially in the long term. Provided that they are actively used: Now is the right time to take advantage of the current developments in order to remain competitive in the long term.
Effects of the DMA Regulations on Google
Google is also affected by the DMA regulations. The aim is to curb the company’s immense market presence in favor of fairer competition conditions. Following are listed some of the regulations which Google has to follow:
End of self-preference:
- Google is no longer allowed to preferentially display its own products and services, such as “Google Hotels”, in search results. As a result, Google has also significantly adjusted the search result pages for hotels.
More transparency in algorithms:
- Google must clearly disclose how search results and rankings are generated by its algorithms to ensure that its own services are not given preferential treatment.
More data access for third party providers:
- Google has to give the latter more access to data. This includes expanded access to key interfaces, usage data, and extended campaign data. These measures are designed to ensure that third parties get fair access to necessary data.
The direct booking revenue share has dropped by 4.3% to an average of 28.1%, while OTA revenue market share has increased to 62.7%.
- Analysis by D-EDGE, 2024
The Impact of the New Rules on the Hotel Industry
Hotels had high expectations for the general impact of the new regulations on their own business, including the hope of lower distribution costs. However, the current development shows a mixed record: An analysis by Mirai makes it clear that the winners of the regulations so far have been mainly players with a strong online presence. In most cases, this is especially true for larger hotels or well-established booking platforms. Smaller hotels, on the other hand, have so far benefited little from the changes that have taken place and must therefore address the challenge of setting active countermeasures in order to be able to benefit from the current situation in the long term.
The most important progressions in summary
In a recent analysis, D-EDGE analyzed website traffic and digital booking data from independent hotels and small hotel groups in the EU. The data were collected between January and April 2024 and compared to the same period of last year. Below is an overview of the key findings:
Containment of revenue from direct bookings:
- The direct booking revenue share has dropped by 4.3% to an average of 28.1%, while OTA revenue market share has increased to 62.7%.
Free booking links on Google:
- In addition, revenue from free booking links decreased by 32%. Despite the same ranking, the above-mentioned adjustments to the search results pages could explain the decline in clicks. These so-called “free booking links” allow users to book a hotel room directly through Google search. Thus, these links would actually be a valuable source of direct bookings.
Organic traffic to hotel websites:
- Furthermore, there is a significant 20% drop in organic traffic to hotel websites and the share of direct revenue from organic and unpaid traffic on Google from 66% to 57%. Organic results are being pushed down, making them less visible to respective users.
Increase in distribution costs:
- The share of direct revenue from Google paid campaigns has increased from 34% to 43%, resulting in an 18% increase in direct distribution costs. However, direct costs remain significantly cheaper than indirect costs on average, such as booking platforms commission costs.
How Can Hotels Use These Changes as an Opportunity?
Concrete recommendations for adapting to the new situation
Despite the current developments, the new regulations offer many opportunities for the hotel industry to counteract the fluctuations and losses as well as to steer current trends in a different direction in the long term. Below, we present a list of some efficient measures that can help hotels achieve this goal.
1. Diverse Marketing Channels
Hotels should not only focus on one platform or on individual marketing measures, but should increase their reach holistically and expand their online presence:
Social Media:
- Use networks such as Instagram, Facebook and TikTok, to interact with potential and existing guests and promote your hotel with its offers. For the most important strategies in social media marketing for hotels, read our article “Social Media Trends 2024: Half-Year Summary for Hotels”.
Search Engine Marketing:
- Hotels have the opportunity to increase their own visibility through targeted search engine advertising (SEA) or search engine optimization (SEO) and to address their own target audience efficiently. Both paid ads within the framework of SEA and SEO measures are based on detailed keyword research, in which relevant search terms for the hotel are identified and specifically integrated on the website, in Google My Business or in ads.
The two strategies should be carried out across various search engines and thus also include companies such as Bing and Yahoo, especially since these search engines represent valuable and relevant alternatives to Google.
Email marketing:
- Newsletters as well as automated emails to interested parties and existing guests are tailored to the respective target audience and contain personalized messages with added value about the hotel. Both formats are ideal for promoting the USPs and various offers of the hotel. Through email marketing, the hotel is remembered, and guest loyalty can be continuously strengthened.
2. Promote Direct Bookings in a Targeted Manner
Advantages through direct bookings:
- Offer your guests special benefits when they book directly through the hotel's website. Examples include exclusive offers, discounts and free upgrades (subject to availability) for direct bookers.
Loyalty programs:
- Reward loyal guests and encourage them to return. For example, regular guests can receive exclusive incentive vouchers in personalized emails or discounts through referral programs. This will strengthen guest loyalty in the long term.
Easy booking process:
Ensure an uncomplicated and user-friendly booking experience on your website or landing pages, including:
- Easy to find booking an inquiry options
- A clearly structured booking route including real information on availability and minimum stay
- FAQs
- Flexible payment options
3. Personalization of Guest Communication
The individualized approach to interested parties and guests with relevant content is particularly important in order to arouse the interest of the respective recipients and ensure a communication appropriate to the target audience. Thus, the probability that the respective person will effectively make a booking is increased efficiently.
Data-driven marketing uses data from (potential) guests to send the right messages at the right time. However, the manual analysis of these large amounts of data is only possible to a limited extent in everyday hotel operations. Here, specialized software solutions are used, which analyze the respective data in the background, segment it and then send personalized messages automatically.
Like this, digital hotel marketing can be efficiently implemented in hotels. Software solutions developed specifically for the hotel industry in the field of marketing automation are tailored to the specific needs of the industry and thus help hotels to implement both hotel marketing and ongoing guest communication as profitable as possible and yet save resources.
Data-driven marketing uses data from (potential) guests to send the right messages at the right time. However, the manual analysis of these large amounts of data is only possible to a limited extent in everyday hotel operations. Here, specialized software solutions are used, which analyze the respective data in the background, segment it and then send personalized messages automatically.
Like this, digital hotel marketing can be efficiently implemented in hotels. Software solutions developed specifically for the hotel industry in the field of marketing automation are tailored to the specific needs of the industry and thus help hotels to implement both hotel marketing and ongoing guest communication as profitable as possible and yet save resources.
Conclusion and Outlook
Contrary to the expectations, many hotels have so far not benefited from the changes. The changes alone do not offer immediate benefits - they must be actively used through targeted measures. The current development therefore represents a promising opportunity to benefit from the changes in the long term. The DMA regulations principally are an important step towards a fairer digital hotel market. Investing in a sustainable and holistic online marketing strategy is particularly worthwhile at this time in order to be able to respond efficiently to further developments in the future.
Hotels can take this chance to expand their online presence as well as their own hotel marketing, attract more guests to their hotel and increase the share of direct bookings. By tailoring their marketing strategies, hotels can proactively respond to the new competitive conditions and thus sustainably increase their own business success.
Hotels can take this chance to expand their online presence as well as their own hotel marketing, attract more guests to their hotel and increase the share of direct bookings. By tailoring their marketing strategies, hotels can proactively respond to the new competitive conditions and thus sustainably increase their own business success.
An Experienced Partner in Hotel Marketing
ADDITIVE helps hotels as an experienced expert in hotel marketing and combines innovative online marketing measures with modern software solutions. Innovative solutions such as ADDITIVE+ MARKETING AUTOMATION use guest data to implement automated and data-driven marketing measures in a targeted and efficient manner. This ensures that every guest receives the right message at exactly the right time. The achieved results are transparently evaluated and can be viewed at any time.
If you would like to know more about the innovative solutions from ADDITIVE and the ADDITIVE+ APPS, you can schedule an appointment for a non-binding consultation with an ADDITIVE team member:
If you would like to know more about the innovative solutions from ADDITIVE and the ADDITIVE+ APPS, you can schedule an appointment for a non-binding consultation with an ADDITIVE team member:
