Booking.com relaxes keyword bidding clause with hotels

Booking.com has altered its contract with hotel partners so that owners and chains now have the ability to bid freely on brand terms in Google.

Previously, hotels were restricted via their General Delivery Terms with the online travel agency on bidding on certain keywords, such as "booking.com" and other trademarked terms on Google AdWords and generic search terms.

In a letter sent to hoteliers last week, Booking.com says: "We removed the bidding restrictions from our agreement with you. This means you're free to bid on Booking.com via online search engines if you want, which aligns with a recent EU (European Union) ruling.

"The removal applies to all accommodations. There aren't any other changes to your conditions and our mutual agreement, besides additional explanations and clarifications of the GDT terms."

So, for example, alongside allowing hotels to bid freely on their partner's brand name, they can now also vie for attention using "hotels in London" and other destination-specific terms.

Whilst some may see the removal of the clause from contracts as a reason for celebration, in reality the change is unlikely to ignite a major change in the direct marketing tactics of property owners.

Firstly, property owners are still unable to use "booking.com" in the headline or ad description (a key part of Booking.com's strategy is to use the hotel name in its own ads).

Plus, Booking.com will continue regardless to invest in its own marketing efforts to promote its hotel partners by bringing customers to properties via the online travel agency.