Google muscles in on OTA business
In a move likely to rile some of its biggest spending travel trade advertisers, Google is pressing ahead with a more direct role in online hotel booking.
The search engine struck a deal this week with hotel-booking tech company Room 77 which will add some of Room 77’s developers to the Google payroll.
According to a report by the Wall Street Journal, Google will add more reviews and photos of individual hotel listings directly on the search page, inspiring web surfers to book direct, bypassing online hotel search sites such as Expedia and Priceline, which happen to be some of Google’s biggest advertisers.
The move is to encourage hotel operators to place more ads directly on Google rather than relying on online travel agents which can charge as much as 25% in commission.
It plans to ramp up visibility of its ‘hotel price ads’ that show room rates and one-click availability from the search page.
It is a bold move as online travel agents spend billions in ad placement on Google each year.
The report estimates Priceline Group and Expedia alone will spend a combined $2.5 billion during 2014.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025