Should Hotels Consider Resuming Google Ads and Other Search Campaigns? - PhocusWire

After the brutal shock to the travel industry due to the coronavirus crisis, the vast majority of hotels stopped or questioned all their investments in online marketing, mainly Google Ads and metasearch.

This decision made a lot of sense given the severity and exceptional circumstances of the moment.

Investment fell 80% in the second half of March, compared to the first half, and 90% when compared to the same period in 2019 - figures that correspond with those in a Cleveland Research report.

They illustrate the huge concern that hotels face and new variables to consider that did not exist before:

• Cash flow. In the current situation, one of the objectives of any company, including hotels, is maintaining the highest possible amount of cash. The vast majority of investments in online marketing are paid in advance and that is a problem now.

• Uncertainty. Most hotels have no idea yet when they can reopen. They have tentative dates that are pushed back as the days go by. It is impossible to forecast if the gradual reopening of hotels will start in June or September. Given this great uncertainty, how can we risk investing in a model such as CPC (cost per click) without a guarantee of conversion and that, above all, those reservations will not be cancelled?

• Profitability. Many hotels anticipated that their campaigns would not be profitable in this situation and, when facing this, the best thing is to pause it all.