Metasearch engines: 7 myths and some certainties

Marketing, like cotton, doesn't deceive. For every unit of currency invested, you receive "x" units of return. It's that simple. Obviously, the goals of such investment can be many and varied, and quantifiable to a greater or lesser extent. You can aim for greater visibility, increased brand awareness, or an increase in the number of bookings in the strict sense, to name three common examples. In short, and pardon the insistence on this matter, the strategy, as in any field, should always be the starting point, setting the tone and guiding, when it comes to reading and interpreting the results.

Investment vs. Expense

It never ceases to amaze us that there is so much talk of "investing" in stocks, in housing, or even in gambling, and yet we tend to talk about "spending" on marketing. The stock market, real estate, cryptocurrencies, or the gambling market are much more volatile and unpredictable than the digital marketing space in which hotels operate.

No one assures you that you will get a return when you buy stocks, purchase a house, or bet on a team or athlete to win a game (unless we're talking about Real Madrid or Rafa Nadal, of course). These activities have earned the right to be labeled as "expenses" or, at the very least, "risky," due to the lack of certainties surrounding them.

On the contrary, hotel digital marketing can only be understood as an "investment" because, properly managed, with a good strategy, it always yields benefits.

Let's go with the 7 myths

Talking to customers and actively listening to the industry in general provides valuable information. This is how we have compiled the most common reasons hotels give when justifying their reluctance to have a presence on metasearch engines or to activate paid campaigns.

What worries hoteliers so much and holds them back? What are their arguments for not wanting to be present? What makes them doubt the suitability of advertising on Google Ads? And, alternatively, why do they insist on putting a cap on the budget allocated to these platforms? Below is a list that we have called "Goals, Myths, and Certainties."

If I hadn't invested, I would have sold the same


The favorite excuse of the non-empirical, those who measure the direction and intensity of the wind by licking their index finger, pointing it to the sky, and winking for precision. It is a recurring argument among utopian, idealistic hoteliers, who may not be wrong in thinking that they would have sold the same, but are wrong in assuming that these sales would have come through the direct channel.

We often counter this argument by pointing out that more than 70% of travelers use metasearch engines to look for accommodation. Not investing in them is equivalent to not being there, and not being there gives too much advantage to their competitors and, above all, to OTAs, which do dedicate huge amounts of money to improving their positioning on metasearch engines and search engines.

In summary, not investing in SEA and metasearch engines doesn't necessarily mean selling less, but it will drastically reduce the weight of direct sales in favor of intermediated sales.



Commissions are too high, and my direct selling costs skyrocket


Again, a very biased reading. Too high compared to what or whom? Compared to not selling? Compared to OTA commissions? Let's revisit the topic of strategy here.

The goal of digital marketing investment is to ultimately sell more, that's clear. But you can't go from A (investing) to B (selling more) all at once. There are many intermediate steps, hundreds of details to take care of.

Proper and responsible management of metasearch engines inevitably involves bid optimization. Obviously, it is essential for the hotel to do its homework and have its prices controlled and well-worked. Then, with proper monitoring, surprising results can be achieved. For example, we have managed to reduce certain clients' commission from 10% to 5%, without compromising their visibility, positioning, or sales. If anything, the opposite.

We are talking about a reduction of 5 percentage points from the commission that is understood on that platform.



I can't afford to spend so much


If someone you trust completely told you that for every euro you give them, they will give you back three, wouldn't you find a way to get euros even from under the stones? Well, this is more or less the same. That someone is us, your trusted provider, your strategic partner. We share interests and goals because our work is based on a win-win model, meaning we only eat if you eat.

And we'll tell you something... We still don't know of any case where the hotel lost money as a result of its investment in digital marketing. It may not have received the expected return initially, perhaps. But losing money, definitely not. In fact, for informational purposes, the ROAS (Return On Ad Spend) we generate for our clients ranges between €10 and €30 per euro of investment.



Current metasearch engines don't convert for my hotel


We can understand if you have doubts about which metasearch engine (or engines) is more convenient for your establishment. And there is no definitive metasearch engine, anyone who says otherwise is lying.

What does exist are your audiences, your main source markets, your preferred segments, and, once again, your goals and needs. And, based on all these variables, it will be easier to define your ideal mix. But it's not up to you to do it; that's what we're here for.



The CPC bidding model is a waste of money


Just as it happens with the choice of metasearch engines, the bidding model to choose is closely linked to strategy.

For example, in Google Hotel Ads, undoubtedly, CPA Guest Per Stay is the most popular model, partly due to the pandemic, during which the cancellation rate rose to unprecedented levels.

Other metasearch engines, like Tripadvisor, have also adopted this model, which guarantees the hotel only pays for materialized reservations. Their minimum commission is 10%, but one week is enough to know if this bidding model is profitable or if it is better to opt for CPC. To understand it better, the commission for a €2000 reservation in France will be €200. However, if we detect that this market has a low CPC, high demand, and competitive pricing, we might end up paying only €56 to get that reservation.

That's why we insist that the decision to opt for one bidding model or another will be conditioned by numerous factors: having a competitive price, average ticket, average length of stay... Still, with a good reading and interpretation of the data, we will never talk about wasting money.



Free booking links are enough; it's not worth paying


As Google integration partners, the moment you start working with us, your hotel will appear directly in Google's Free Booking Links, and this, like everything else, adds up. But thinking that it's enough is going too far. Let's think from Google's perspective... Wouldn't it be shooting themselves in the foot to create a free feature that undermines one of their current most important sources of income?

Behind this initiative is simply the intention to have the highest number of data possible, the highest number of connected hotels, which has a very positive impact on the reliability of the results they offer and also promotes the transition of these hotels to their paid advertising models.

But Free Booking Links always appear below paid results (see screenshot). That is, their visibility is limited. However, appearing well-positioned in them reinforces the belief that a hotel that has a good organic ranking is really a good option, beyond the position it occupies as a result of its investment.

Do Free Booking Links contribute? Without a doubt. Are they enough? Not at all.



My hotel is too small / urban / boutique to invest in digital marketing


And is it not too small to be on Booking? This argument, very common, is also one of the most common mistakes. Again, a matter of strategy.

Just as depending on the type of marketing, distribution, and management you apply, you will be interested in some technological tools or others, depending on the segment, the type of establishment, or the size, some channels will be more appropriate than others, and the investment will also adapt to those circumstances.

Your hotel may be very special and well-positioned for a certain market niche, but far from being a reason not to invest, it can be the best argument to do so. Less competition and better positioning also mean needing less investment to achieve fantastic results. We cannot forget that everyone competes in their league, and some leagues are more demanding than others.

It is not equally easy to become a professional football player, something that millions of people in our country aspire to, as it is to become one, for example, in badminton, a less popular sport, where you will probably find less competition.

And now, some certainties

Metasearch engines and digital marketing, in general, help you boost your direct sales at the expense of intermediated ones. However, as the saying goes, a shoemaker to his shoes. It is essential to have a partner that:

Gets involved from the beginning, actively participating in the strategy definition phase. Maintains "good relationships" with the platforms. At Paraty Tech, we are Google integration partners, Tripadvisor Premium Partners, and we work with the most powerful tools. Carries out daily monitoring and analysis of the evolution and status of campaigns. Converts what you understand as an expense into an investment within a reasonable period.

This way, we know for sure that it is possible to:

• Optimize / reduce investment


• Optimize / reduce commission


• Identify new markets


• Discard channels / bidding models


• Maximize return

We design websites, integrate the booking engine, and provide you with multiple price control and revenue management tools. But this is just the first step. We are also your partner for managing digital marketing. If you want to know more about Paraty Digital Suite and Paraty Metas, contact your account.