Mark Simpson breaks down Google's 2021 monetization push for travel: hotels and hosts can now pay for top placement in Google Ads, Business Listings, and hotel ads. He warns this could trigger a price war as booking.com, Expedia, and Airbnb slash margins to compete.
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You can now pay them. You pay them for Google Ads to bid on your brand and to get those really unique keywords. But now you can also pay them to become more prevalent in the map pack in the Google business listing, which again is going to be interesting. If you can spend a couple of pounds to just come higher in the, in the, in the order on your Google business list, in, in the Google travel, in the Google hotel ads, whatever they're going to call it, then we all know that people go for the first thing that they see and it'll be really interesting. Now the backlash from booking.com, the backlash from the Expedia group, the backlash from places like Airbnb or TripAdvisor could be that what they'll do is they will sacrifice their profit by making the price lower. So they'll still charge you the 15 and say it's a 100 pound room or 100 pound a night property. They will still charge a 15% but what they'll do is they will lower the price of the room, lower the price of the unit and then they will make less money.