The new legislation was intended to level the digital playing field for hotels, but so far it seems to be having the opposite effect
Jun 18, 2024
The Digital Markets Act (DMA) is new legislation from the European Commission aimed at curbing the power of online “gatekeepers” like Google, Apple, Facebook and Amazon. It promotes fair competition and gives consumers more choice in the digital marketplace. For hotels in Europe, the DMA is expected to improve transparency in rankings and visibility on these platforms, giving hotels more control over their distribution and reducing their reliance on online travel agencies (OTAs).
Key takeaways
- Organic traffic to hotel websites has decreased by 20%, likely due to organic links appearing much lower in search results;
- Revenue from free booking links has decreased by 32%. Despite consistent placement, changes in overall page presentation may explain the 41% drop in clicks;
- The share of direct revenue from Google paid campaigns has risen sharply from 34% to 43%, with Google Ads (search marketing) now accounting for 39% of clicks;
- This shift has resulted in an 18% increase in direct sales costs, with the average direct sales cost increasing from 3.3% to 3.9% of revenue. However, direct costs remain, on average, three times less expensive than indirect costs.
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