Tuesday, May 28, 2024 Mirai reports that the European Digital Markets Act has caused a 30% drop in Google Hotel Ads traffic and a 36% decline in direct bookings for EU hotels. Mirai, a leader in hotel technology solutions aimed at maximizing direct sales and minimizing distribution costs, has observed a significant impact from the European Digital Markets Act (DMA) on hotel direct sales. Mirai’s data reveals a 30% reduction in Google Hotel Ads traffic and a decline of up to 36% in direct bookings within EU markets affected by the DMA.
The DMA, implemented between January 19 and March 7 this year, has introduced profound changes in Europe’s digital landscape, impacting hotels worldwide. In July 2023, the European Union identified six digital companies as ‘gatekeepers’: Amazon, Apple, ByteDance (TikTok), Alphabet (Google), Meta (Facebook), and Microsoft (Windows). More recently, on May 13, the European Commission also designated Booking.
com as a gatekeeper. For Google, this designation means it cannot feature its own vertical services, such as Google Maps, Google Flights, or Google Hotel Ads, in its search results pages (SERPs). Consequently, Google had to adjust its platform, including Google Hotel Ads, which has affected hotel visibility and direct sales.
These changes present significant challenges for European hoteliers, who are experiencing decreased visibility and a reduced capacity to sell directly. This shift has increased their reliance on intermediaries, negat.