Why extended-stay properties should care about hotel paid search now
Extended-stay hotels are uniquely exposed to high OTA commissions: longer stays mean larger booking values, and OTAs capture a disproportionate share of revenue unless owners control the direct channel. A strategic hospitality PPC approach can help reduce OTA dependence and increase direct bookings, but many properties sabotage performance with avoidable paid search errors. Below are the most common mistakes decision-makers make, why they happen, what they break, and what a vendor or in-house team should do instead.
Over-broad targeting that competes with OTAs instead of complementing them
Why it happens: Teams or agencies default to broad, high-volume keywords to chase immediate occupancy and impressions. For extended-stay properties that can be a reflexive reaction to pressure from ownership to fill rooms quickly.
What it breaks: High-cost clicks from generic searches inflate CPA, pull budget away from high-intent queries, and increase direct conflict with OTA listings where margin is lowest.
What a better approach looks like: Segment keywords by intent—short-stay vs. extended-stay, corporate relocation, long-term rates—and protect margin by prioritizing phrases where the property can demonstrably out-convert OTAs, such as brand terms, corporate account queries, and local relocation searches. A healthy campaign structure will separate these audiences and budgets so you’re not cannibalizing profitable segments.
Campaign structure that lumps short- and long-stay audiences together
Why it happens: A simple account is easier to manage and looks cheaper on the surface. Vendors with limited hospitality experience may not appreciate the nuance of extended-stay buying cycles.
What it breaks: Poor budget allocation and inaccurate performance signals. When one ad group contains both transient travelers and month-long guests, conversion metrics and bidding logic become meaningless.
What a better approach looks like: Implement a granular campaign structure that separates extended-stay offers, corporate rates, and leisure stays. Use distinct creative, landing pages, and bid strategies per segment so you can optimize for different KPIs—ADR and length-of-stay for extended-stay vs. occupancy for short turns.
Driving traffic to generic pages that kill landing page conversion
Why it happens: Marketing teams often push traffic to the homepage or standard booking engine to avoid extra development or UX work.
What it breaks: Poor landing page conversion and inflated CPC-related waste. If ad messaging promises “weekly corporate rates” but users land on a generic site, you lose intent, increase friction, and hand conversions back to OTAs.
What a better approach looks like: Align ad copy with specific, conversion-focused landing pages built for extended-stay travelers: explicit pricing, length-of-stay calculators, clear corporate offer details, and a streamlined booking funnel. Optimizing landing page conversion is often the highest-leverage fix outside of bid strategy.
Ignoring call tracking and offline conversion paths
Why it happens: Teams assume all conversions happen online through the booking engine, or they lack the tools to tie phone leads and group inquiries back to campaigns.
What it breaks: Under-reported lead quality and misleading ROAS. Extended-stay bookings frequently start with phone calls for negotiated rates or corporate bookings; failing to attribute them undervalues certain channels.
What a better approach looks like: Implement call tracking and offline conversion reporting to capture reservations, group leads, and negotiated bookings. Evaluate lead quality, not just volume, so you can allocate budget toward channels that drive high-value stays even if they don’t convert immediately online.
Treating all bookings as equal—ignoring lead quality and lifetime value
Why it happens: Reporting that focuses exclusively on last-click conversion obscures guest lifetime value and typical extended-stay behaviors like corporate accounts or repeat stays.
What it breaks: Short-term optimization toward the cheapest cost-per-booking can erode long-term profitability. You may scale low-value one-night bookings that actually reduce average stay and increase operational costs.
What a better approach looks like: Incorporate lead quality and projected lifetime value into bidding and reporting. Measure metrics like average length of stay, repeat business, and corporate account acquisition—then weight bids toward guests that deliver higher long-term margin.
Underfunding retargeting and lifecycle marketing
Why it happens: Properties cut retargeting budgets to prioritize acquisition or because they don’t see immediate attribution in the booking window.
What it breaks: Missed opportunities to nurture in-market guests and reduce OTA leakage. Without retargeting, users who compare rates on OTAs are less likely to return to book direct.
What a better approach looks like: Allocate a proportion of budget to retargeting and audience-based bidding to re-engage site visitors, quote abandoners, and loyalty program prospects. Combine hospitality PPC retargeting with email and CRM-driven messaging to close the loop and increase conversion rates on direct channels.
Poor budget allocation across the funnel
Why it happens: Budgets are often set as a flat monthly number without dynamic reallocation for seasonality, corporate booking cycles, or last-minute demand spikes.
What it breaks: Either wasted spend during low-demand periods or missed bookings during peak windows. For extended-stay properties, timing and channel mix can vary significantly by market segment.
What a better approach looks like: Adopt a flexible budget model that aligns with booking windows and KPIs. Shift spend toward high-intent queries and brand defense during OTA-heavy periods, and increase retargeting before corporate payroll or relocation cycles. Vendor proposals should include a budget allocation plan and scenarios for seasonal changes.
Choosing a vendor that treats hospitality like any other vertical
Why it happens: Low-cost agencies promise quick wins but lack experience with the specific economics of extended-stay hotels or the tactics to reduce OTA dependence.
What it breaks: Misaligned KPIs, ineffective creative, and poor campaign structure. You’ll see shiny metrics like clicks but little improvement in high-value direct bookings or reduced OTA margin.
What a better approach looks like: Hire a digital advertising agency with proven hotel PPC and hospitality PPC expertise. The right partner understands campaign structure for extended-stay audiences, retargeting nuances, call tracking, and landing page conversion requirements. Make sure vendor proposals outline timelines, expected risks, and how they’ll measure lead quality and revenue impact—not just clicks.
How to spot these problems before you hire someone
When evaluating agencies or internal hires, ask targeted questions that reveal their approach and experience. Request examples of campaign structure (not client names), explanation of how they measure lead value beyond bookings, and their plan for aligning ads with landing pages. Look for these red flags during interviews:
- Vagueness about campaign structure: If they say “we’ll just set up a few ad groups,” they likely won’t separate extended-stay segments.
- No plan for call tracking or offline attribution: If they treat phone leads as an afterthought, you’ll undercount high-value bookings.
- Overemphasis on CPC without LTV: If the conversation centers only on reducing CPC, they aren’t optimizing for margin or guest value.
- Lack of landing page or CRO strategy: If they won’t collaborate with your web or revenue team to improve landing page conversion, expect wasted spend.
- No scenario-based budget planning: A competent vendor will outline budget allocation models for seasonality and OTA pressure.
Related reading: Hotel SEO Strategy to Beat OTAs in Local Search
FAQ
- Q: How quickly can hotel paid search reduce OTA commissions? A: You can often see improved direct bookings within 8–12 weeks if campaign structure, landing pages, and call tracking are implemented together. True reduction in OTA reliance is a 6–12 month effort as corporate relationships and direct-booking behaviors shift.
- Q: Should I move budget from OTAs to PPC immediately? A: Not blindly. Reallocate incrementally while ensuring you have the right landing page conversion paths and attribution to handle increased direct traffic. Sudden cuts to OTAs without a replacement acquisition plan can harm occupancy.
- Q: What role does retargeting play for extended-stay properties? A: Retargeting captures users comparing rates on OTAs and nudges them back to book direct. It’s especially effective for longer decision cycles and corporate bookings, where reminders and tailored offers improve conversion.
- Q: How do I evaluate lead quality from PPC? A: Measure beyond bookings—track average length of stay, ADR of purchases from each channel, group and corporate account wins, and repeat business. Ask vendors how they incorporate these metrics into their optimization process.
- Q: Do I need an agency or can this be handled in-house? A: It depends on bandwidth and experience. An in-house team can manage hotel PPC if they have hospitality experience, analytics capability, and resources for landing page work. Otherwise, a specialized digital marketing agency that understands hotels and extended-stay economics is often more efficient.
If you’re evaluating partners, prioritize experience in hotel paid search and hospitality PPC, insist on transparent campaign structure, and require proof of process for call tracking, landing page conversion optimization, and thoughtful budget allocation. For properties in Orlando or throughout Florida, working with a digital advertising agency that understands local market nuances can accelerate results. When you’re ready to reduce OTA dependence and increase direct bookings, learn more about our services.
