Google’s commission-based hotel ads are gone: What this means for your hotel

Google officially ended commission-based bidding for hotel ads as of February 20, 2025. In short, the way hoteliers pay for Google ads that generate bookings changed. What does this mean for you? And how can platforms like Mews help you stay lucrative in the new reality? We had a chat with Jenna Decker, Solution Architect at Mews, to help answer those questions. 

What changed for hotel ads and bidding on Google 

First, what does commission-based even mean? Commission-based means you only pay for something once you see results. For hotels, it means (or in this case, meant) paying Google a fee only when a guest completed a booking through an ad. So, the cost was tied directly to actual bookings, which kept things predictable and low risk. 

Google’s move to cut commission-based bidding strategies means you no longer pay a commission based on the bookings made through their paid ads. Instead, you now pay upfront for clicks and impressions, no matter if those clicks turn into bookings or not. 

How the old bidding model worked (commission-based) 

Under the old model, hotels paid Google only when a guest completed a stay booked via a hotel ad. This structure had some benefits: 

• Hotels faced minimal financial risk as they incurred costs only when actual revenue was secured, making it easier to budget. 

• Since hotels only paid for bookings that resulted in stays, there were no costs associated with clicks that didn’t convert, which meant no wasted ad spend and more predictable cash flow. 

How the new bidding model works (upfront payments) 

Under the new model, hotels pay for ad engagement as costs accrue, either through the Cost Per Click (CPC) model, where they pay per click received, or the Target Return on Ad Spend (tROAS) model, where bidding is optimized to meet a revenue goal. The payment structure typically follows a threshold-based system - hotels are billed once their ad spend reaches a set limit or at the end of a billing cycle.  

This means hotels must allocate budgets proactively, as they need to pay upfront for clicks and impressions, regardless of whether those clicks turn into bookings. Here’s what this brings: 

• Hotels face a higher financial risk because ad spend is incurred before any revenue is realized. 

• Without the safety net of commission-based pricing, hotels need to optimize their ad campaigns carefully to have a positive ROI. 

What this new setup means for you is that you’ll need to be more strategic and data-driven to stay ahead, and it also shows how important first-party data has become. Keep reading, we’ll explain. 

Why did Google sunset commission-based bidding? 

Google did it largely influenced by stricter privacy rules and the decline of third-party cookies. As data privacy laws get tighter, platforms like Google are focusing more on first-party data instead of tracking users through third-party cookies. 

Over the past few years, big browsers like Google Chrome have started phasing out third-party cookies to give users more privacy. Google had planned to remove cookies completely by 2025, but in mid-2024, they tweaked their approach and introduced a system that lets users control their third-party cookie settings. 

While this gives users more privacy, it also makes cross-site tracking less effective. For hotels, this means third-party data, such as what you’d get from Google, is less reliable. On the flip side, the data you collect yourself, known as first-party data, matters more than ever for successful marketing and creating personalized guest experiences. 

How to succeed with Google’s new hotel ad bidding model 

Change can be uncomfortable, but it’s also an opportunity to adapt and grow. More often than not, it’s just about adjusting your approach. To stay competitive and boost revenue, rethink how you attract guests. 

How well do you know your guests? Does the data you’ve collected help provide a stellar guest experience? In hospitality, everything starts and ends with guests. And this is where prioritizing first-party data and direct bookings can give you an advantage. 

Take a guest-first approach 

The best hotels prioritize their guests, but to do that, you need to understand them. That’s where data helps. With third-party data becoming less reliable, it’s time to focus on first-party data – information you gather directly from guests, including booking history, preferences, and spending habits. 

To collect and utilize this data, you need a robust, integrated hospitality system. Mews is a guest-first platform where hoteliers like you have a full overview and control over the guest journey. Every booking, payment, refund, or chargeback is directly linked to a guest profile on Mews. 

We take a somewhat unique approach to hospitality. Mews automates repetitive tasks so staff can focus on guests instead of screens. Our intuitive system is easy to use, helping teams work faster. When staff have more time to connect with guests, they can collect insights, update guest profiles, and make every stay more personal. Check out Mews Smart Tips feature that makes it easier for you to personalize each guest’s experience. 

First-party data like this gives you a complete view of your guests, from what they spend to how they book and their lifetime value (LTV). You get to know your guests better and can adjust your offerings to match their needs. 

Now, let’s talk about the power of direct bookings. 

Prioritize direct bookings 

With commission-based bidding gone, you’re likely feeling the push to focus more on direct bookings. The great thing about this shift is that by investing in a direct booking engine, you can cut back on your reliance on online travel agencies (OTAs) and keep more of the revenue from each booking. With an intuitive and modern booking engine, guests can book directly on your site, leaving out the third parties and those hefty commission fees.

"Google’s change puts more financial risk on your hotel, but it’s also a chance to rethink things. To succeed, focus on optimizing your campaigns and driving direct bookings. The key to making this work is knowing your guests and using first-party data to tailor your strategy," says Jenna Decker.

A website with a booking engine makes things easier for both you and your guests. It gives your guests a seamless booking experience while helping you strengthen your brand and build stronger relationships with them. Plus, when they book directly, you get valuable insights that let you fine-tune your marketing and make their experience even better. 

It’s also an opportunity to show off your brand personality from the first interaction with the guest and to offer special rates, packages and upsells for guests who book with you directly. Hotels that master direct bookings will be the ones that come out on top. 

How Mews helps hotels adapt 

Mews simplifies direct bookings, helps you make the most of first-party data, and gives you more control over your operations, all while improving the guest experience. Here’s how Mews can help your hotel: 

A commission-free direct booking engine 

Mews provides a built-in, commission-free booking engine that allows you to maximize revenue from direct bookings. Here’s what's included: 

• Seamless, mobile-first booking experience: Guests can easily reserve rooms without unnecessary friction, improving conversion rates. 

• Embedded payment processing: Secure transactions result in a hassle-free checkout process, reducing the risk of abandoned bookings. 

• Real-time availability updates: This eliminates overbookings and reduces manual errors, leading to a smooth guest experience. 

And by driving more direct traffic, you can take greater financial control and reduce dependency on OTAs which leads to lower acquisition costs and higher profitability. 

Rich guest profiles for enhanced personalization 

Mews lets you create detailed guest profiles by tracking preferences and behaviors, turning that data into insights you can actually use. With this info, you can craft personalized marketing, recommend exactly what guests want, and deliver an experience that truly connects. 

When every stay feels personal, you build stronger loyalty, encourage repeat bookings, and create lasting relationships. 

According to Jenna Decker, "Having the right platform makes all the difference in adapting to changes in hospitality. When you can manage your bookings, track guest preferences, and tap into real-time data all in one place, you’re in a much better position to stay ahead. It’s about taking ownership and really connecting with your guests to create loyalty and drive growth."

Effective first-party data management 

Mews helps you collect and manage first-party data, making it simple to segment guests, personalize marketing, and run more targeted campaigns. 

With all this data organized, you can get a clear picture of guest preferences, boost engagement, and make sure your marketing hits the right people at the right moment. 

Data-driven insights for smarter decision-making 

Mews offers powerful analytics and reporting tools that give you insights to make smarter, more informed decisions. Real-time data lets you track campaign performance, spot trends, and quickly adjust strategies to improve results. 

You can rest assured your ad spend is working harder by driving revenue growth. The bottom line is that if you’re using quality data to guide your decisions instead of guessing, you stay ahead of the competition and remain agile in a turbulent market. 

Final thoughts on the shift in hotel advertising 

The move from commission-based bidding to an upfront payment model is a big change, but it also gives you a chance to take control of your guest data and improve your hotel marketing strategy. Combined with using the right tools, taking a guest-first approach and building a solid booking engine, you’ll successfully adapt and keep growing.

Still not on Mews? Book a demo and see how the platform can transform your hospitality business.

For more on booking engine best practices, check out a recent Matt Talks episode where Mews CEO, Matt Welle, covered booking engine conversion strategies: