Hotels face rising costs for direct bookings

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Digital regulations, privacy restrictions and new transparency standards are increasing the overall cost of guest acquisition for hotels

Nov 24, 2025

Hotels are experiencing rising customer acquisition costs as new privacy, consent and price transparency rules weaken the visibility and effectiveness of digital marketing. A recent Cendyn report highlights that declining tracking signals, higher media prices and heavier compliance obligations are limiting how accurately hotels can measure and optimise their campaigns. As third-party cookies fade and regulations demand clearer disclosures, hotels struggle to assess true performance and allocate budgets efficiently. The result is a more regulated digital landscape in which demand remains strong but is increasingly difficult to track and convert profitably.

Key takeaways

Privacy restrictions reduce visibility: Tighter data-consent rules mean more guest bookings occur without full tracking, weakening analytics and automated bidding accuracy.
Higher media costs elevate CPA: Hotels are paying more for clicks and impressions while receiving fewer measurable conversions, pushing up cost per acquisition.
Loss of third-party signals shifts strategy: With fewer reliable user signals, hotels must depend less on automated systems and more on owned data and direct engagement.
First-party data becomes essential: Loyalty programmes, email sign-ups and guest accounts help hotels build permission-based profiles that support targeted marketing.
SEO grows in strategic importance: Strong organic search visibility can offset rising paid media costs and improve direct booking efficiency.
Price transparency rules affect performance: New legislation requires full-cost rate disclosure, and inconsistent application can create parity issues that reduce visibility and conversions.
Channel consistency safeguards trust: Aligning taxes, fees and surcharges across all distribution points is now directly tied to both compliance and marketing effectiveness.
Compliance becomes a competitive factor: Hotels integrating legal requirements into digital strategy are better positioned to manage acquisition costs and maintain guest trust.