Google has extended the deadline for phasing out commission-based bidding in Hotel Ads campaigns to February 20, 2025. Starting April 30, 2024, new Hotel Ads campaigns will no longer support Commissions (per Stay) and Commissions (per Conversions) bid strategies. However, existing campaigns using these strategies will continue to function until the extended deadline.
About Commissions (per Stay) for Hotel Ads
- Commissions (per Stay) is an auto-bidding feature allowing partners to pay only when a guest stay occurs, mitigating the risk of cancellations.
- This strategy leverages Google AI to optimize guest acquisition efficiently.
- Conversion tracking and purchase conversion values (full booking amount) are mandatory for all hotel ads Smart Bidding strategies.
How Commissions (per Stay) Bidding Works
- Campaign Setup: Partners create a campaign and set a commission rate (% of booking value).
- Bid Calculation: Google AI calculates a bid using auction-time signals to achieve the target ROAS based on the set commission rate.
- User Interaction: The user clicks on the ad and completes a booking on the partner’s website.
- Reconciliation: Within 45 days of the user's check-out date, the partner confirms the stay or cancellation via a reconciliation upload in Google Ads.
- Billing: Google bills the partner based on the commission rate multiplied by the booking value after reconciliation.
For more details on transitioning from commission-based bid strategies, partners are advised to review the guidelines provided by Google below.
