AI transforms the search experience in the hospitality industry

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June 21, 2024

Felipe Bravo - Head of Roiback Digital

In recent months, there has been a growing buzz regarding the incursion of artificial intelligence into search engine results pages, especially in the hotel arena. While it is premature to state definitively how the implementation of AI will affect results pages, we can already glimpse a preview of how this technology will influence the hotel industry.

This change comes as a result of Google's efforts to introduce its AI language model, Bard, and its generative search experience initiative, known as Search Generative Experience (SGE). There is speculation that this new form of search could revolutionize the way users interact with search results.

The Search Generative Experience (SGE) concept

The SGE concept, which Google is looking to implement, marks a milestone in the evolution of search results pages.

The SGE proposes a search experience in which answers and results are generated by artificial intelligence systems. In essence, it is a redesign of the conventional search experience in which the results and their presentation will be different from what users are used to.

This SGE approach opens a new chapter in which priority is given to the presentation of answers generated by Google's own ecosystem, relegating third-party sources to the background. With this, both the "Knowledge Panel" and the "Local Pack" gain relevance, replacing the traditional "10 blue links" in the search results.

Preliminary changes at a glance

Although these changes are still at an early stage and are not clickable, preliminary images have been presented that give an idea of what the new search results interface might look like:

  • Expansion of the "Local Pack": The SGE introduces the possibility to display up to five results in the "Local Pack", which highlights the importance of local SEO and Google My Business optimization for hotels.

Before:

As it could be:

Each entry also includes a short piece of text that briefly describes the hotel. There are also links to images in the upper right corner that link to SGE's information sources. These sources are a mix of OTAs, travel websites and official hotel websites.

After clicking on a property, either in the list on the left or via a pin on the map, the property's Google Business Profile appears with all the information you would expect from a hotel profile on Google.

In the GHA section, sponsored ads were conspicuous by their absence and only organic links (All options) come up, but this could simply be because this is a BETA and Google continues to experiment with how to incorporate hotel pricing ads with SGE.

The most curious thing about the matter, and without forgetting that these are only experiments, is that Google continues to show the usual 3 Local Pack ads:

  • Inspirational Question Snippets: The addition of inspirational question snippets, similar to the "People Also Ask" feature, encourages exploration of AI-generated answers and a more enriching experience for users.

  • Varied Outcome Designs: Preliminary designs present outcome options with possible variations, including hotel listings and OTA advertisements.

  • Interaction with AI Results: The ability to convert a query into an AI-generated result via a button is introduced. When clicked, an expanded description is displayed including reviews, images, ads and more queries.

Implications

These changes could have a crucial impact on traffic and results for both SEO and meta search engines, depending on how Google implements these transformations. Some of the findings and possible practical implications include:

  • Changes in visibility and traffic: At first glance, the changes may affect the visibility and traffic of hotels on results pages. The search experience appears less transactional and more focused on the presentation of AI-generated information.
  • Strengthened local SEO: Google My Business management and local SEO become even more critical. The "Local Pack" could show more results (up to five), and Google Travel visibility could increase, displacing traditional organic results.
  • Prioritization of informational resources: Google seems to favor its own ecosystem by introducing informational and navigational resources that divert users' attention to direct channel options.
  • Challenges for OTAs: OTAs will need to increase their visibility through metasearch ads, as designs suggest less prominence of conventional ads.
  • Changes in CTR and SEO: The current CTR of organic results is likely to decrease, and the prioritization of formats in Google's ecosystem could change the way traditional SEO is approached.

Conclusion

The advent of artificial intelligence on search results pages, through Google's SGE initiative, is shaping a new horizon in the hotel industry and beyond. While the changes are preliminary and could evolve, it is undeniable that AI will transform the way hotels interact with search results. This paradigm shift poses challenges and opportunities for marketers and the industry as a whole.

Adapting to this new era of AI-generated search will be essential to staying relevant and successful in a constantly evolving environment. We are in for an interesting few months of waiting to see what final decisions Google makes regarding SGE and how it ends up implementing the changes - we'll be watching closely!

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