Many accommodation businesses are confused about TripAdvisor’s direct bookings, are you one them? Let’s try to explain, so find a nice quiet spot to sit down with a glass or mug of your favourite drink.
In the last year TripAdvisor has changed its business model a number of times leaving many potential customers confused and even locked out. We have created a couple of videos to help you understand these changes (skip to these at the foot of the article…if you like) but it’s probably worthwhile seeing some of the basic facts first. Like them or not, here they are;
In short, if you don’t have online rates you will receive less traffic and fewer bookings than in previous years.
If you do want bookings this way then you choose your route, direct with TripAdvisor or through an OTA – either way there is no requirement for any fixed upfront costs, no subscriptions or annual fees.
To get bookings direct you will need an account with TripAdvisor and an approved booking engine (or connectivity partner i.e. freetobook). Simply login to your TripAdvisor account and setup your direct advertising via their TripConnect service. Most approved booking engines charge for this service but with us it is completely free.
To advertise directly on their website you will need to pay TripAdvisor. In their wisdom they have created two models for payment (hence our two videos mentioned earlier).
Model One: Pay Per Click
Here you pay TripAdvisor a click fee each time a customer clicks on your advert, on a Cost Per Click (CPC) basis. However, you DON’T pay for a search, you only pay when the customer searches AND then clicks on your available price. If you are not available on the dates the customer searches or they don’t click the price then you don’t pay.
Cost Per Click model facts:
You pay when a customer clicks on your available price.
TripAdvisor sets the click costs and from feedback they are generally quite low (but we can’t see or know the cost, they are only visible in TripAdvisor).
You can vary what you pay per click (your bid). If you bid too low then TripAdvisor will remove the advert and you would have to increase your bid to show again.
If you work with an OTA they might also advertise alongside your CPC advert.
You set the budget and pay TripAdvisor and can switch it on/off as you please.
In this model you pay for the advertising and you measure the bookings that come from the clicks. Bidding higher for clicks will make you show at the top of any adverts on your property and bidding too low will mean you don’t show. You make the judgement as to the cost effectiveness of your advertising by totalling up the bookings versus the click costs. Ideally that return has to better than any other booking options i.e. OTA commissions.
Enjoy the youtube video on the Cost Per Click model.
Model Two: Pay Per Booking model (Instant Booking)
In this model you only pay TripAdvisor for bookings. There is no cost for each click, instead you pay a commission amount on realised bookings. You set this up by logging into TripAdvisor account and activating an Instant Booking campaign. You pay TripAdvisor a commission fee only after the customer has completed their stay. At the time of this blog Instant Booking is not available to all properties. Use the Instant booking link below to check.
Pay Per Booking model facts:
You pay either 12% or 15% commission after the customer has stayed.
If you bid 12% then TripAdvisor will show your advert 25% of the time.
If you bid 15% then TripAdvisor will show your advert 50% of the time.
No other OTAs will show if your advert is showing.
There is no payment/commission due on bookings that cancel.
Enjoy the youtube video on the Pay Per Booking model
By now you are either asleep or completely up to speed on direct bookings from TripAdvisor….. that is before it changes (only joking!) As always, please share your experience of this service or any other relevant news, let us know how it has or hasn’t worked for you.
Other relevant pages:
List of premium partners (booking engines) with TripAdvisor
TripConnect CPC on freetobook
TripConnect Instant Booking on freetobook
TripAdvisor TripConnect on their site
TripAdvisor Instant Booking on their site
Millgate B&B was awarded the best B&B in the World 2015, why not have a little read about how Sue did it along with a few tips to learn from.
If you’re a historian or an online booking nerd and want to see some old blogs on how TripAdvisor has changed since we first started reporting and connecting way back in July 2013