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Hotels must rethink their marketing mix: Leading industry consultants interrogate Cendyn Performance Index

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  • 1 October 2025
  • 6 minute read
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This article was written by Hospitality Net. Click here to read the original article

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Operating in a crowded, consent-addled marketplace where AI is starting to bring real value, hotels can no longer ‘set and forget’ their marketing tools if they want a Find, Book and Grow strategy that works. Here, leading industry consultants from around the world share their perspectives on the Cendyn Hotel Digital Marketing Performance Index 2025.

Digital advertising across the Google ecosystem is a key part of the hotel marketing mix, and for very good reasons. But how are these efforts performing? And how is performance evolving in the context of rising costs, platform changes, and privacy restrictions?

This is why the Cendyn Hotel Digital Marketing Performance Index was developed. A comprehensive benchmark report that provides hoteliers with a data-driven view of their digital advertising efforts, it means hotels can stay competitive in a landscape that is fast evolving.

The report analyzes year-over-year data in the Cendyn Digital Marketing Platform (DMP) by channel, region, device, and KPIs for a macro-level view of campaign performance across Google’s advertising ecosystem. Looking across Google Hotel Ads, Free Booking Links, Search Ads, and Performance Max for travel goals, some critical trends are emerging.

In speaking with key industry experts about how these findings are defining the way forward for hotels, they pulled out some very noticeable insights:

Safety belts on! | Frans Riemersma
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Safety belts on! | Frans Riemersma

AI-powered, standout performers

A key finding in Cendyn’s performance index is that hotel customer acquisition costs (CAC) are down 19% year-on-year (YoY), as a result of hotels using AI in Google’s Performance Max for travel goals (PMTG).

What really stands out is how PMTG is proving to be a high-performing lever, delivering both direct revenue and a halo effect across the broader media mix. This validates the need for hotels to rethink their marketing mix, incorporating AI-driven solutions alongside foundational channels like SEM and metasearch. Li Hawkins, Managing Director of Insight Out Consultancy, based in the Middle East

The Performance Index shows that PMTG increased hotel bookings and revenue by more than 4x across all regions. And there was a 262% surge in conversion rate (CVR) and improved cost efficiency due to the intelligent application of AI with guest data to find high-value audiences.

Soaring media costs add complexity

With costs rising sharply year-over-year – increasing by 20% to 40% across digital platforms – the benchmark report reflects a tough environment for hoteliers.

This report shows what many hotels are experiencing today: marketing costs are rising, privacy rules are tightening, and OTAs are competing harder than ever. New tools like Google’s PMTG can help, but hotels need to make sure they get the basics right first. Many haven’t fixed issues like rate parity, data quality, or system integration. At the end of the day, digital marketing only works well if it’s supported by strong distribution and a clear commercial strategy. Sally Richards, Managing Director of RaspberrySky, which supports clients in the UK and internationally

The performance index also found that Google Hotel Ads (GHA) cost-per-click (CPC) rates rose 14%, reducing click volume despite continued advertiser demand. This is likely due to intensified competition, increased bidding pressure from online travel agencies (OTAs), evolving regulations, and macroeconomic headwinds.

Tracking challenges

The rollout of Google Consent Mode V2 in March 2024 significantly altered how performance is measured across all channels – with reduced user consent leading to gaps in conversion tracking. As a result, apparent declines in conversion rates often mask actual booking activity.

Many KPI declines are measurement artefacts due to consent mode – not real performance losses. The privacy shift is being keenly felt by hoteliers. It means they’re having to react quickly, moving towards modeled conversions, server-side tracking, and first-party data – all to get the clarity they need to make advertising decisions. Chris Peppers, Head of Online Marketing of JF-Hospitality, which has clients across DACH and Europe

Hawkins agrees: “Consent Mode V2 has accelerated the shift away from cookie-based tracking, and hotels that fail to invest in first-party data strategies and CRM/CDP activation will lose clarity on performance. Conversely, AI-powered platforms like PMTG are already showing they can offset some of this uncertainty by leveraging intent signals and automation at scale.”

The mobile-desktop journey

Cendyn’s performance index shows clear roles for both mobile and desktop in the user journey towards hotel bookings. Desktop remained the dominant driver of transactions—capturing 63% of bookings and 71% of revenue. Yet mobile continued to play a critical role in visibility, inspiration, and early-stage engagement.

Optimizing mobile, desktop websites and booking engines feeds into a hotel’s ability to drive bookings.

Cendyn’s performance index identifies trends that directly impact a hotel’s ability to compete for direct business. It is critical that hotels are positioned to win over the OTAs and their competition. With knowledge comes power, and the data and strategies within this report, if adopted, I believe could have a significant impact on performance. Caryl Helsel, Founder and CEO of the US-based Dragonfly Strategists

How to stay competitive: advice for hotels

So what should hoteliers do in the face of these findings according to these consultants?

Invest for long-term success

“Budget with realism, not nostalgia”, advised Hawkins. “Hotels must plan for higher acquisition costs but align these with lifetime value strategies — investing in CRM, loyalty, and upselling to maximize ROI per guest rather than focusing only on initial CPA. Underpinning it all – invest in your data foundation, and balance the media mix intelligently.”

Be cohesive and collaborative

“Check your pricing and distribution regularly – if your products are difficult to understand and your prices aren’t consistent across channels, your ads won’t deliver and OTAs will take the lead,” said Richards. “Build and use your own data – relying too much on third parties weakens your position. And think beyond the campaign. Success comes when marketing, revenue, and operations are aligned on goals, supported by systems that make direct bookings easy.”

Re-imagine KPIs

“Hotels need to increase their budgets, but if they can’t, they need to use their budget dynamically and use Google Hotel Ads and Free Booking Links in tandem”, explained Peppers. “Implementing Consent Mode V2, continuously monitoring price parity, and using PMTG as a mandatory component are all a must in the current context. When it comes to KPIs, it’s time to reinterpret ROAS/CVR, and supplement measurement gaps with alternative metrics such as net revenue.”

Draw on established expertise

“Hotels need to find a supportive partner like Cendyn to help them navigate the intricacies of the ever changing landscape in the digital marketing journey”, said Helsel. “Expertise and professional guidance is critical to long-term success. Be informed. Always be learning. And always be willing to adapt quickly. Agility and knowledge are key.”

The way forward

Uncovering some key truths in hotel digital marketing today, the Cendyn Hotel Digital Marketing Performance Index can help to guide hoteliers forward with a little more certainty.

“The report highlights an urgent call to action: hotels that simply spend more without a smarter strategy will erode profitability”, said Hawkins.“We are in an environment where hotels risk misinterpreting performance, underfunding campaigns, and ceding ground to OTAs. The days of ‘set and forget’ Google Hotel Ads are over. Ultimately, the hotels that integrate AI, use first-party data, and craft profit-focused commercial strategies will win.”

With further strategic insights into how different parts of the Google ecosystem are performing for hotels, actionable takeaways, and case studies of real hotel experiences, the Cendyn Hotel Digital Marketing Performance Index is the hotelier’s data-informed guide to the future. By understanding the context we’re currently operating in, hotels can Find their ideal customers, create the right conditions for them to Book, and Grow their profitability in a tough marketplace.

About Cendyn

Cendyn is a global hospitality cloud-based technology company that enables hotels to drive revenue, maximize profitability, and create deeper connections with guests through its integrated solutions. Serving hoteliers for nearly 30 years, Cendyn drives commercial success for hotels through its Find, Book, Grow promise: find the right guests, drive them to book direct, and grow loyalty and revenue across the spectrum of digital guest interactions.

Cendyn has over 35,000 customers worldwide in more than 150 countries generating more than $20 billion in annual hotel revenue. The company supports its growing customer base from locations across the globe, including the United States, France, the United Kingdom, Singapore, Bangkok, and India. To find out more, visit cendyn.com

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