Understand brand bidding, an advertising strategy where hotels bid on their own brand name keywords to protect direct bookings.
Brand bidding is an online advertising strategy where a business bids on its own brand name or variations of it as keywords in paid search campaigns. The goal is to ensure that when someone searches specifically for your brand, your official website appears prominently at the top of the search results.
For hotels, brand bidding is essential for protecting direct booking revenue. Without it, OTAs or even competitors might bid on your hotel's name, diverting traffic and bookings away from your direct channels. A hotel like "The Grand Hotel" bidding on "Grand Hotel" ensures that travelers looking specifically for them are directed to their official site, not a third-party reseller, maximizing direct bookings.
FAQ
Why should a hotel engage in brand bidding?
A hotel should engage in brand bidding to protect its brand name from competitors and OTAs, ensuring that when potential guests search for the hotel specifically, the official website appears at the top. This safeguards direct bookings and prevents commission losses.
How does brand bidding impact direct bookings for hotels?
Brand bidding significantly boosts direct bookings by ensuring that high-intent travelers, who are already searching for your specific hotel, are directed to your official website. This reduces the chance of them booking through a third-party channel and helps maintain a stronger relationship with guests.
Is brand bidding always cost-effective for hotels?
Brand bidding is generally very cost-effective for hotels because the conversion rates for branded searches are typically high, and the cost per click is often lower due to less competition. The return on ad spend (ROAS) usually justifies the investment by protecting direct revenue.
