CPC or CPA on Metasearch: Which one's right for you?

Ahead of Google’s removal of commission-based metasearch this February, learn about the two main payment models - and decide which one is right for you.

Google has announced that their planned removal of commission bidding on metasearch will be pushed back from October 2024 to February 2025. While those extra few months have hoteliers on CPA breathing a sigh of relief, it’s still a wakeup call. For those running metasearch on a CPA model, the deadline to find a new way to access metasearch is approaching, and fast.

While hoteliers have a few different options for how they continue to access metasearch (you can learn more in our  blog and video here), the two core methods are currently CPC (cost-per-click) and CPA (cost-per-acquisition). Triptease is able to run both types of campaign for hoteliers - and will continue to do so even after Google’s deadline has passed. In fact, our bidding models incorporate unique hotel data that Google doesn’t access, allowing us to tailor our algorithms and to even outperform Google. But what are the key differences between CPC and CPA, and what are the pros and cons of each?

Cost-Per-Click

CPC, or Cost-Per-Click, is the most traditional way to work on metasearch. With CPC, you’ll pay a negotiated price for every click on metasearch — and will have to provide upfront ad spend. Nothing will be refunded in the case of cancelled bookings, so there’s an element of uncertainty. By working with a metasearch connectivity partner like Triptease, you’ll benefit from expertise and improve your performance, but you will also have to pay a monthly licence fee on top of any ad spend.

Benefits of CPC

• Higher ROI: Typically CPC campaigns see a better return on investment, as with CPA campaigns the rate charged per acquisition has to incorporate the risk of cancellations and lost bookings.
• Flexibility: Ability to bid on a more granular level, plus the flexibility to change your campaigns at any point to maximise the effect of seasonal campaigns or promotions.
• Control: You decide the maximum amount you’ll bid for each click, which you can easily flex in real time to align with your goals.
• Performance: While CPC requires closer monitoring, working with an experienced metasearch provider like Triptease can help to lessen your load and give you the benefits of CPC without the daily bid management.

Downsides of CPC

• Upfront cost: You’ll need to be able provide ad spend on a monthly basis, and may need to flex the amount in order to optimize your campaigns.
• Greater exposure to risk: As you’ll be paying for clicks and not bookings, this can be a riskier option, particularly for hotels with lower website conversion rates.
• Internal barriers: It may be harder to get the budget signed off for the upfront spend required for PPC, particularly if your hotel is new to metasearch or you have strict budgeting regulations.

Who does the CPC model work best for?

• Hoteliers who are confident in their website conversion rates.
• Hoteliers able to obtain the upfront ad spend required to maximise their metasearch CPC campaigns.
• Hoteliers who have high ROAS targets and want to maximise their spend as much as possible.
• Hoteliers who require flexibility in their marketing - if you’re running a lot of promotions or will need to flex your maximum bids on a regular basis, CPC is the route for you.

Cost-Per-Acquisition

With CPA, or Cost-Per-Acquisition, hoteliers only need to pay when a guest from metasearch actually completes a booking on their site.

CPA was introduced by Google during the pandemic in response to the uncertainty of the travel industry. It’s been a great option for hoteliers who are more risk adverse and want to guarantee return on their spend, but typically comes with a significant lower ROI than CPC. It also provides less control over performance-

Benefits of CPA:

• No upfront cost: You won’t have to provide a monthly ad spend
• No risk: if your metasearch doesn’t drive any bookings, you don’t pay.

Downsides of CPA

• Lower ROI: Because the risk is being carried by Google (or your metasearch provider), you will have a fixed ROI that will typically be lower than what you could achieve with CPC.
• Control: CPA comes with less control over the levers you can pull on metasearch - you can’t adjust your max bids as easily to take advantage of unexpected opportunities, or run seasonal campaigns with ease.
• Tracking requirements: Effective CPA campaigns rely on accurate tracking, so having access to this is imperative. If you struggle to capture data on your website, it will be difficult to measure the actual impact of CPA metasearch. Working with a season provider like Triptease can mitigate this, as we can highlight potential errors in your tracking.
• Administrative load: On CPA, you’ll typically have to provide your metasearch partner with your cancellation data on a regular basis in order to only pay for completed stays. This can be time consuming and involve multiple departments across your business — and not keeping on top of it can lead to costly mistakes.

Who does the CPA model work best for?

• Hoteliers trying metasearch for the first time
• Hoteliers who are more risk-adverse
• Hoteliers who are struggling to get upfront budget approved for metasearch. We often find that in certain markets and with certain types of hotels, it can be easier for marketers to obtain the budget test out metasearch on a CPA basis, before moving to CPC once the channel has proven itself

Triptease’s Metasearch product outperforms Google and will continue to offer a CPA model.

Work with us and get access to:

• AI-driven bidding algorithms to help you succeed on metasearch
• Industry-leading functionality like Price Match, with controlled discounts that mean you’ll never lose out on bookings due to OTA undercuts
• The ability to weave detailed hotel data into your metasearch strategy

Interested in learning more about what Triptease Metasearch can deliver for your hotel business? Get in touch today.