Google shifting to AI-powered bidding for Hotel Ads

The company is retiring its commission-based bidding for Hotel Ads in October 2024, replacing it with tROAS and Performance Max

Google has announced upcoming changes to its bidding strategies for Hotel Ads. The company plans to sunset its commission-based bidding options for Hotel Ads by October 2024. These strategies rely on third-party cookies to accurately determine guest stays and calculate commission payouts.

Key takeaways

• Google aims to shift advertisers to target Return on Ad Spend (tROAS) bidding for hotel campaigns. This strategy utilizes Google’s AI to optimize bids based on campaign performance goals;
• Additionally, Google is expanding its Performance Max solution – which leverages AI to maximize budget efficiency – to include travel-focused goals;
• The commission-based “Commissions (per Stay)” and “Commissions (per Conversions)” options will stop accepting new users beginning February 2024;
• Google will fully deactivate these strategies on October 31, 2024. Advertisers can continue using these options until then;
• Google recommends transitioning to the new tROAS and Performance Max solutions before the fall sunset date.

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