Amid hotel distribution wars, Google will be the last site standing

In an ideal situation for hotels, travelers looking for overnight accommodations would just come directly to them - by walking into the lobby, calling a 1‐800 number or visiting the hotel’s website.

This would be the most cost‐effective and convenient way for hotels to welcome guests.

But for several reasons over the past two decades - comparison shopping, trusted reviews and a much lower overhead - intermediaries have successfully inserted themselves into the equation directly between hotels and travelers.

Because of this, the hotel customer journey has become increasingly convoluted, and travelers, thinking they can find a better hotel or a better price, now search and research dozens of sites before finally booking a room.

Google is the single biggest threat OTAs have seen thus far, and they should certainly be worried.

Marco Benvenuti

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But what if I told you there’s a new tool that sits way at the top of the funnel, right where nearly all travelers start their initial research, that provides the same benefits of an online travel agency but sends traffic, bookings and, most importantly, guest data directly to the hotel?

If such a tool existed, would it not only restore revenue and convenience for hotels, but also eliminate the wasted time, energy and resources of today’s travelers trying to ensure they’ve found the right hotel at the right price?

Enter Google Travel. I don’t have to waste space here with statistics on how many people use Google in the travel dreaming and research phases.

You already know this, because it’s probably where you start your searches. It’s likely on your homepage - the first thing you see when you open the internet.

While OTAs fight to remain relevant and hoteliers scramble to get their products on as many shelves as possible, the potential is there for Google to emerge as the clear winner.

Like Netflix has done for television and Amazon has done for retail, Google is positioning itself to completely disrupt and revolutionize the way travelers book hotel rooms.

Google is leaning in

Google’s travel efforts are not new by any stretch. Since 2006 the company has been acutely focused on serving up the right search results, giving travelers key information they need to make smart, educated travel decisions.

Around 2010, company executives realized they could monetize their position at the top of the funnel and began creating advertising products to allow hotels and OTAs to pay for greater positioning.

But until recently, Google’s push into the traveler’s booking path has been slow and calculated. After all, the company couldn’t risk travelers bypassing their biggest advertisers: the OTAs.

Now, however, it’s clear that Google is leaning all the way in. Over the past 18 months, the search giant has evolved from a hospitality digital marketing medium to a major player in hotel loyalty and distribution. Recent moves by the company include:

• Announcing the development of a "hotel‐plus‐flight product”
• Offering exclusive hotel discounts to Google One users
• Introducing a mobile‐specific hotel pricing tracker
• Boosting “Book on Google” features and availability
• Introducing new Google Maps hotel search functionality that highlights deals
• Announcing “Your Trips,” which collects flight price tracking, hotel research, etc.
• Redesigning a more modern hotel search experience on both desktop and mobile

Who wins out in the end?

Room distribution is in need of a shake‐up - from the hotelier's perspective, but more importantly from the traveler’s perspective.

Booking a hotel room is often complicated and convoluted, with so many options, sites and packages that travelers are never quite satisfied they got the best deal.

There’s plenty of room for a company to come in and do it right - offer a personalized experience that cuts down on the clutter and leaves the user feeling satisfied.

Google has the data - it can help travelers make decisions with the click of a button - and has built trust with a large number of users.

When all the dust settles, it won’t be surprising to see Google as the last man standing.

In fact, recently the first major hotel chain, Choice Hotels International, announced that it would participate in “Book on Google,” a newer feature that allows travelers to complete their booking without leaving the search site. It won’t be long before the other major chains follow suit.

Should hotels close the revenue gap even slightly, Google just might be inclined to return to their original mission: providing travelers with the best experience, not the one that makes them the most money.

With this, Google has the power to simplify the entire customer journey. They’ve got all the data in the world, enough to determine exactly what a traveler is looking for and send them to the right hotel from the get‐go.

Working directly in conjunction with hotels that store their own loyalty and guest preferences, Google can serve up personalized rates and offers that are tailored to each individual traveler based on a number of factors, namely supply, demand and the customer’s worth, or value, to the hotel.

Google is the single biggest threat OTAs have seen thus far, and they should certainly be worried. For hotels, on the other hand, Google has become their most important direct‐booking channel and represents an opportunity to get right back to the top of the funnel.