How GOOGLE's DMA changes impact your direct channel and what you can do to adapt to them

In this article, we explore how changes stemming from the DMA, especially those related to Google and Google Hotel Ads, affect hotels like yours, and what strategies you can implement to mitigate these impacts and optimize your direct channel.

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What is the WFD and what does it oblige companies to comply with?

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The Digital Markets Act (DMA) is a key regulation that seeks to ensure fair competition in the online market and protect the privacy of users within the EU/EEA. The companies "affected" by this law are: Alphabet (Google), Amazon, Apple, ByteDance (parent company of TikTok), Meta (parent company of Facebook, Instagram and WhatsApp), Microsoft and, most recently, Booking.com.

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What are gatekeepers within the EC (European Commission) obliged to do?

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The DMA requires major digital platforms (called "gatekeepers") to comply with rules designed to:

• Promote competition: Allow equal access to data and audiences, facilitate data portability and avoid favoring their own products over those of third parties.

• Protect privacy: Collect data only with explicit consent, prohibit unauthorized profiling and facilitate removal of pre-installed applications.

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Impact on Google and Hotel Ads

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In response to the DMA, Google has implemented significant changes to the usability of its products, affecting platforms such as Search, Maps and Hotel Ads.  

Since the beginning of 2024, Google has implemented changes to its Google Hotel Ads platform that have reduced the visibility and CTR of campaigns, impacting clicks and visits to hotel websites. The reduction in ad spend for Roiback clients in Europe has been -23% compared to last year.  

Conversely, although clicks are down, the level of bookings for GHA has remained almost flat compared to last year, indicating a limited impact on performance, but a slight improvement in CPA and ROI. Both conversion rate and CPA are variables that depend on many other factors to draw clear conclusions (rates, disparities, bidding models, account optimization, etc...). What does seem clear is that there is a negative impact on the visibility of hotels within the Google Hotel Ads ecosystem, but it is not equally reflected in conversions.  

It should be noted that the other two most relevant metasearch engines, Tripadvisor and Trivago, have absorbed part of the growth that GHA should have achieved during 2024 and have recovered some of thesharelost over the last 3 years.

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Will Google continue to make changes to search results?

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Yes, Google will continue to make small changes and tests throughout the year, until it meets all the requirements that commit it to the DMA. For example, it has recently announced a new test in 3 markets in Europe, where it removes various map and hotel results and functionalities, going towards a very similar format to the old one with simple search results (starting with paid and followed by organic). You can learn more about Google's latest modifications in the article "An update on our compliance with the DMA"o  

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What does this test look like in a real environment?

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Example "hotel + destination" in Google DE:

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Example "hotel + destination" in Google Spain:

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As you can see there are several functionalities that disappear in the test.
At the moment in the tests we do not see any tests for brand keywords "hotel name".  

You can read more about this test in the thread: "A temporary Search experiment for hotel results in Germany, Belgium and Estonia".

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What impact can these changes have?

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• Reduced visibility on Maps and GHA: This may require increasing SEM bids to compete with OTAs and metasearch engines.  

• Budget realignment: Possible redeployment to campaigns such as Search, Performance Max, Demand Gen or YouTube Ads.

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Practical recommendations for a hotelier:

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At Roiback, we work closely with Google to understand these changes and mitigate their impact on our clients. We recommend:  

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Diversify your channels: Don't rely solely on Google.
Opt for a strategic combination of digital marketing that includes meta search engines, SEM and social networks.

Optimize investment: Work with your specialized partner to continuously analyze performance and prioritize the most profitable channels for your hotel profile.

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What does Booking.com's designation as "gatekeeper" for the direct channel entail?

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Booking was designated on May 13, 2024 as "Gatekeeper" several months after the commission assigned the other companies. Following its designation, Booking had six months to comply with the relevant obligations under the DMA, providing more choice and freedom for end users and fair access for commercial users to gatekeeper services.  

As the most striking and immediate impact change they have implemented, as I imagine you have read, is to eliminate all price parity clauses. Hotels belonging to the EU can offer on their own website a better price than the one offered through Booking.com.  

Even so, and despite this and other changes, it is apparent to the industry that they do not address several obligations identified in the regulations and, at least in the short term, no positive impact on the direct channel seems to be apparent. We will continue to monitor these developments for further evaluation over the coming weeks and months.

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Conclusion

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The DMA is driving profound changes in the digital ecosystem, and while these can create challenges, they also open up new opportunities for hotels that know how to adapt strategically. At Roiback, we continue to monitor the evolution of these regulations and work collaboratively with our clients to ensure they are prepared and can maintain leadership in their direct channel.

If you have any questions or need advice, don't hesitate to contact us, we are here to help you!

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