Meta-Search Engines and ROAS: How to get More Out of your Marketing Investment?

In the quest for optimal ROAS (Return on Ad Spend), metasearch engines have become an indispensable channel. They are not just a source of visibility, but a powerful tool to drive direct bookings and, therefore, maximize your hotel’s profitability. Without a solid metasearch strategy, you’re leaving money on the table that your competitors are picking up.

What Are Metasearch Engines and Why Are They Crucial for Hotels?

Metasearch engines are platforms that aggregate hotel price and availability information from various sources, including OTAs (Online Travel Agencies) like Booking.com and Expedia, as well as the hotels’ own websites. Think of them as flight comparison sites, but for accommodation. The most well-known in the hotel sector are:

• Google Hotel Ads: Integrated directly into Google search results, Google Maps, and Google Travel. It is, without a doubt, the most important due to its reach.
  
  
• TripAdvisor: A review giant that also offers a powerful price comparison tool.
  
  
• Trivago: Exclusively a hotel price comparison site.
  
  
• Kayak: A general travel metasearch engine that includes flights, cars, and hotels.

The key to their importance lies in capturing the user in the final phase of their booking decision process. The traveler has already decided on their destination and dates, and is now looking for the best price and the hotel that best suits their needs. Being visible and competitive on metasearch engines at this point means you have a direct opportunity to divert bookings from OTAs to your direct channel, significantly increasing your ROAS.

The Direct Impact of Metasearch Engines on Your ROAS

ROAS is calculated as (Revenue Generated by Advertising / Cost of Advertising). Metasearch engines can impact this calculation in several ways, generally very positively.

1. Divert Bookings from OTAs (Commission Reduction)

• Lower Cost Per Acquisition (CPA): OTA commissions can range from 15% to 25% (or more) of the booking value. While metasearch engines have their own cost (usually a percentage of the booking or a cost per click), this is generally considerably lower than OTA commissions. For example, paying a 5-10% commission for a booking through a metasearch engine to your direct channel is much more profitable than paying 18% to an OTA for the same booking.
  
  
• Improved ROAS: By reducing the CPA per booking and maintaining the same revenue, your ROAS will skyrocket. Every direct booking obtained through a metasearch engine is a commission saved.

2. Increased Volume of Direct Bookings

• Visibility at a Key Moment: By appearing in metasearch results, your hotel gains visibility just when travelers are ready to book. This translates into a higher volume of qualified traffic to your own booking engine.
  
  
• Access to New Audiences: Although they attract users in the final phase, metasearch engines can also expose your hotel to travelers who might not have found you through a direct search or a traditional paid ad.

3. Greater Control over the Customer and Data

• Customer Ownership: A direct booking means you own the customer’s data from the outset. This is invaluable for Lifecycle Marketing, retargeting, and building long-term loyalty. You can capture their emails, understand their preferences, and communicate directly with them, something OTAs restrict.
  
  
• Up-selling and Cross-selling: With full control of the direct booking, you can easily offer room upgrades, additional services (spa, restaurant, tours), or special packages, increasing the Average Daily Rate (ADR) or Average Revenue Per Booking (ARV) and, therefore, the revenue in the numerator of the ROAS.

4. Improved Trust and Authority

• Price Transparency: Metasearch engines offer transparency, showing your direct price alongside those of OTAs. If your direct price is competitive, this builds traveler trust.
  
  
• Brand Reinforcement: By appearing prominently on metasearch engines, your hotel reinforces its online presence and authority, showing that you are a direct and viable option, not just through intermediaries.

Strategies to Maximize Your Metasearch Investment Returns

For metasearch engines to truly boost your ROAS, you need a well-defined strategy and meticulous execution.

1. Price Parity and Competitiveness: The Foundation

• Competitive Prices: This is the most critical factor. If your direct price is not competitive or, ideally, is the lowest on the metasearch engine, users will choose the OTA. Google Hotel Ads and other metasearch engine systems prioritize the most attractive prices for the user.
  
  
• Rate Parity: Ensure your direct rates are at least equal to those you offer to OTAs. Negative deviations (OTAs being cheaper) are suicide for your ROAS.
  
  
• Incentives for Direct Booking: If you cannot offer a lower price, offer exclusive added value for direct bookings: breakfast included, free early check-in/late check-out, a spa discount, premium Wi-Fi, a welcome drink. Communicate these benefits clearly on your booking engine.

2. Connectivity and Data Accuracy

• Integration with Your Booking Engine and PMS: It is essential that your booking engine is directly integrated with metasearch engines. This ensures that your prices, availability, and conditions are updated in real-time. A price mismatch or incorrect availability can lead to user frustration and lost bookings.
  
  
• Connectivity Partner: Often, you will need a connectivity provider (such as SiteMinder, TravelClick, etc.) to act as a bridge between your PMS/booking engine and the metasearch engines. Choose a reliable and reputable one.
  
  
• Precise Configuration: Ensure that all rates, taxes, and cancellation policies are displayed correctly and consistently across all channels.

3. Bidding Strategies and Optimization

• Flexible Bidding Models: Metasearch engines offer different bidding models:
  
  
  • Commission per conversion (CPA or Cost-Per-Acquisition): You pay a percentage of the booking only when it’s completed. This is the safest way to guarantee a ROAS.
    
    
  • Cost per click (CPC): You pay each time someone clicks on your link. This requires more active monitoring of conversion performance.
    
    
  • Cost per stay (CPS): You pay only for confirmed stays.
    
    
  • Target ROAS: In Google Hotel Ads, you can set a target ROAS, and the system will automatically adjust your bids to try to achieve it. This is a very powerful strategy if you have sufficient conversion volume and precise tracking.
    
    
• Bid Segmentation: Adjust your bids based on factors such as:
  
  
  • Device type: Mobile vs. Desktop.
    
    
  • User’s country of origin: If certain markets are more profitable, bid higher.
    
    
  • Length of stay (LOS): If longer stays are more profitable, bid higher for them.
    
    
  • Stay dates: Adapt bids for high/low season or special events.
    
    
• A/B Testing: Experiment with different bids and messages to see what generates the best ROAS.

4. Hotel Listing Optimization and Reviews

• Google My Business: Ensure your Google My Business profile is fully optimized with high-quality photos, accurate information, hours, services, and most importantly, recent and well-managed reviews.
  
  
• Review Management: Reviews are a massive conversion factor on metasearch engines. Encourage satisfied guests to leave reviews and respond to all of them, both positive and negative, on platforms like Google, TripAdvisor, and the metasearch engines themselves.
  
  
• Compelling Content: Make sure your hotel’s photos and descriptions on metasearch engines are attractive and accurately represent your property.

5. Accurate Attribution and Conversion Tracking

• Google Analytics 4 (GA4): Link your Google Hotel Ads account with GA4 and ensure conversion tracking is correctly configured, including the booking value. This will allow you to precisely analyze the ROAS of your metasearch campaigns, not just at the last-click level but also with data-driven attribution models.
  
  
• UTM Parameters: If possible, use UTM parameters to track the performance of metasearch campaigns in your own Analytics, differentiating metasearch traffic from direct traffic or other paid sources.

Challenges and Considerations

• Management Complexity: Managing multiple metasearch engines with bidding and parity strategies can be complex and time-consuming. Consider metasearch management tools or expert assistance.
  
  
• Technological Dependence: The reliability of your booking engine and your connectivity provider is crucial. Any failure can mean lost revenue.
  
  
• Price Pressure: The comparative nature of metasearch engines can create constant pressure to lower prices if you are not competitive or do not offer added value.

Metasearch engines are not just another advertising platform; they are a direct bridge to your bookings and a strategic tool to optimize your ROAS. By actively managing your presence, ensuring price competitiveness, using smart bidding strategies, and offering a superior direct booking experience, your hotel can significantly capitalize on this channel. Investing in metasearch engines is investing in independence from OTAs and in building a solid base of direct and profitable bookings for your business.

Contact us at Digisap, and let’s design together an SEO and digital marketing strategy so your hotel is the first choice, and guests book with you, not the competition.

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