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Google ads and the online travel industry have hit a wall

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Online travel agents, one of Google’s best clients, must now pay billions of dollars a year to ensure they show up high in search results

New York — Google’s moves to cram the top of its search results with more and more advertising is hammering the online travel industry, one of the company’s biggest customers.

This search engine optimisation , worked well until about five years ago. Around that time, Google began placing more ads on the top of search results, pushing down the free listings. The internet giant also built new travel search tools, which were mostly paid listings. “Google has got more aggressive,” TripAdvisor CEO Stephen Kaufer said during a conference call with analysts late on Wednesday. “We’re not predicting that it’s going to turn around.”

DA Davidson analysts wrote that Expedia is exploring alternatives to mitigate its “reliance on search/Google”, but they see “no alternatives that will be able to efficiently ‘move the needle’ from a volume perspective anytime soon”.

 

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