Case Study – Google Hotel Price Ads

Google has launched an exciting new ad format called Google Hotel Price Ads.

Hotel price ads feature hotel prices and availability next to organic results on Google search results, Google Maps, Hotel Finder and Google+ Local.

The below screenshot shows the search results for “Hilton Sydney” along with Hotel Price Ads on the right-hand side.

A click on the room rate in the ad shows a list of advertisers.

In this case,, and are all bidding on the Hilton property.

The position of an advertiser’s listing is based on the room rate. The best rate is featured at the top of the list.

When two partners offer the same room rate their cost per click bids are taken into account to determine the ad position.

The user can select check-in and check-out date and click on the advertiser’s link to reserve a room on the partner site.

Here’s the search result for the same example on Google Maps (“Hilton Sydney”). In this case only the two best room rates were featured, and

However, a click on the small link “2 more from $163” brings up the other two advertisers.

The Bidding Model for Google Hotel Price Ads

There are currently two main bidding models that advertisers can choose from, fixed bids and percentage bids.

In the fixed bid model, the advertiser pays a fixed amount per night selected on the form.

If the bid is $1 and the user selected three nights on the check-in form, the cost for this click is $3 (3 nights x $1).

In the percentage bid model, the advertiser pays a percentage of the total potential booking value selected by the visitor.

If the room rate is $100 and the user selects a three-night stay on the form the total booking value would be $300. With a 1% bid the cost for this click would be $3 (1% * $300).

Based on the bidding model and the ad ranking system it is obvious that the room rate is the most important factor for this ad format.

Having the best room rate will show your ads at the top of the list and generate the best click through rate.

Since most people shop by price, having the best rate will also ensure that your clicks convert well into bookings.

Case Study

We recently launched a Google Hotel Price Ads campaign for one of our clients. Below is case study of the first three weeks of running the ads.

  • Clicks: 698
  • Cost Per Click: $3.15
  • Cost: $2,199.92
  • Bookings: 49
  • Cost Per Booking: $44.90
  • Total Booking Value: $13,255.00

Overall we generated $13,255 in revenues from an ad budget of $2,199.92. The average conversion rate of the campaign was 7%. Our average cost per click was $3.15.

While we are running other advertising campaigns that are generating a better ROI, the first three weeks of this Google HPA campaign definitely turned out to be a success. We will continue running the campaign for our client.

If you need help with your online marketing, we’d love to chat. Click here to get in touch today.

Stefan Maescher

Stefan Maescher

CRO Producer at Web Profits

Stefan Maescher is an online advertising and CRO expert. He helps clients achieve maximum ROI by optimising advertising campaigns, improving web design performance and running data-driven experiments on every part of the online marketing funnel.


  1. axisrooms says:

    The hotel booking engine allows you to book the hotels 24*7. You can book the hotels in an easier manner by the hotel booking engine.

    April 11th, 2014 at 9:46 pm

  2. Arnold says:

    Do you think hoteliers will get the same results with lower priced rooms, in the $60 range? Will these work for small independent properties?

    April 12th, 2014 at 9:14 am

  3. Stefan Maescher says:

    Hi Arnold,

    The bidding model takes into account room rates. A lower room rate will result in a lower cost per click and therefore the results should be about the same.

    Google generally doesn’t work with hotels direct. If an independent property is using a hotel reservation system (e.g. Sabre) that integrates with Google Hotel Price Ads there’s a good chance that it will work.

    April 15th, 2014 at 5:26 pm

  4. Adam Chatterley says:

    Great Article . . .

    I am doing some research on various search options and this HPA method has me fascinated. The one thing that I can not find an answer to is this:-

    If a hotel has a fixed bid per night of $2 and a searcher clicks on the Google Hotel Finder form having searched for 3 nights accommodation, but then for some reason does not manage to complete the booking . . . does the bid amount of $2 x 3 Nights = $6 still get charged???

    Can you help me with this?


    April 18th, 2014 at 1:49 am

  5. Maria says:

    This doesn’t seem to be viable for the hotels. Currently they would pay most OTA’s around 15%, but this method has come in at around 17%, how can this be successful?

    May 25th, 2014 at 2:54 pm

  6. Stefan Maescher says:

    Hi Adam,

    The advertiser pays for each click independent of whether visitors ultimately complete the booking. However, the bidding model for Hotel Price Ads seems to work out well since longer stays result in a higher booking value which justifies a higher cost per click.

    My guess is that overall conversion rates for HPA clicks with varying length of stay are relatively consistent, i.e. the average conversion rate for a visitor who searches for 2 nights vs a visitor who searches for 4 nights would be similar which again would justify the higher cost per click for the 4 night stay.


    May 26th, 2014 at 2:00 pm

  7. Stefan Maescher says:

    Hi Maria,

    Our initial cost/booking value ratio was close to 17% which is higher than what most OTAs charge for a booking.

    However, I also added a note in the case study saying that these results were achieved before performing any campaign optimisation. The performance of our HPA campaigns has improved significantly since.

    In April the average cost/booking value ratio was 15% and for May it’s been consistently below 10%.

    Even if the ads are performing at par with what OTAs charge I would recommend running them since every guest you acquire through your own website is potentially a more loyal long-term guest than OTA referrals.


    May 26th, 2014 at 2:13 pm

  8. haleh says:

    thank you Dear Stefan, but in our country keyword research shows that people doesn’t search by hotel name; how we can use Google Hotel Price Ads?

    November 11th, 2014 at 9:57 pm

  9. George says:


    There are 4 Google sites that HPA’s show on. Google Search, Hotel Finder, Google + Local, Google Maps Results.
    In a small number of cases a user will search for the hotels brand name which will bring up 2 HPA ads, one on Google search results & the other one Google Plus which will appear below the map which shows the location of the hotel.

    As you rightly said, most people don’t know the name of the hotel they want and will do a generic search like “Hotels In Budapest” and engage with the different HPA’s on Hotel Finder or Google Maps. Hotel Finder & Maps are by far the two most used Google sites out of the 4 that I explained above.

    November 24th, 2014 at 11:37 pm