Hospitality PPC Strategies That Actually Convert

Pay-per-click (PPC) ads can generate a steady stream of guests for anyone in the hospitality industry, whether you run a hotel, motel, hostel, vacation rental, or an Airbnb. In terms of marketing strategies, PPC ads convert 50% better than SEO and it’s easier to measure than results from organic search.

But a successful ad campaign isn’t just a matter of getting ads in front of people who are looking to book right now. You can also use PPC ads to find people who are just starting to think about their getaway and those who are comparing options. An effective strategy will reach a variety of people to get bookings now, fill future pipelines, and get repeat guests.

If you’re in the hospitality industry, here’s how paid advertising can help you drive more revenue.

First things first – map the guest journey

To run a successful PPC campaign you need to understand the guest journey. Different people are doing different things at different times. For example, some people are researching destinations and others are comparing lodging, all while another group of people are ready to book. If you serve all these people the same ads, you won’t get the best results. 

1. Define your funnel stages

There are four main stages to a hospitality funnel: awareness, consideration, conversion, and loyalty. Reaching leads at each stage requires different messaging and targeting. That’s where audience segmentation comes in.

2. Segment your audience by intent

Since each lead needs to be given a different message, it’s crucial to segment them by intent first. For example, the dreamers are people who search for “things to do in X city,” “best beach getaway,” and “romantic weekend destinations.” 

The comparers search for “hotel vs. motel in X city,” “4-star stays in X city,” and “Airbnb vs. boutique hotel.”

The bookers search for a specific brand + location + dates. 

Each audience segment should be served different ad copy, different offers, and of course – different landing pages.

3. Measure results according to stage

Finally, you need to measure results in several ways, like impressions, click-throughs, content engagement, and email signups. This will give you the bigger picture regarding how your ads are working (or not). For example, to measure the conversion stage, look at bookings, CPA, and revenue per booking. For the loyalty stage, look for repeat stays or referral leads.

Once you know how you’ll segment your audience and track the results, you can allocate your budget smartly. Otherwise, you risk overspending on high-intent leads and ignoring the long-term value of leads in earlier stages of the journey.

Use a varied keyword strategy to cover all funnel levels

If you only bid on keyword phrases like “hotel room booking tonight,” you’ll miss all the people researching and thinking about their vacation. These people can convert, too, even if it doesn’t happen in the moment. They’re worth pursuing. You can capture their email, get them to like your social media pages, and you can also use remarketing to serve them additional ads.

The following are the general types of keywords you want to focus on:

·      Broad/discovery keywords. These keywords will reach people in the awareness stage. Phrases like, “Best beaches in [location],” “Top things to do in [location],” and “Travel inspiration [country].” When you use broad modifiers (like “top,” “best,” “where to stay”) you’ll attract people in the research stage.

·      Middle-funnel comparative keywords. These are phrases like, “Boutique hotel vs. Airbnb in [location],” “Hotel deals vs. motel,” and “Hotel amenities comparison.” With phrases like these, people are narrowing down their choices. The right PPC campaign can help them pick your business.

·      Branded and high-intent booking keywords. These keywords reach people further down the funnel. Phrases like, “[Your hotel name] rooms,” “Hotel in [location] near [landmark],” and “cheap hotel [location][dates].” These phrases typically provide the highest conversion rates but can be competitive, so they may cost more.

·      Negative keywords. To prevent wasted ad spend on irrelevant clicks, you can add certain keywords to your negative keyword list. This ensures your ads won’t show up when people search for these terms. Common negative keywords used in the hospitality industry include, “Free stay” and “Jobs at [hotel].” 

Since most hotels and motels stick with keywords that target people ready to book, you can expand your reach by running ads for people in other stages. Just make sure you have a system in place to nurture your leads so they don’t go cold. 

Tailor ad copy and creatives to each funnel stage

What you say matters just as much as when you say it. Copy that works for someone researching won’t work for someone ready to book with you. Every part of your ad needs to match intent, including the imagery, tone, copy, and offers. Here’s how to reach each stage:

·      Awareness stage ads. At this stage, people will respond to emotional and inspirational copy. Phrases like, “Discover tranquil stays in the mountains,” or “Unwind by the sea.” Use imagery to provoke desire. Beautiful views and relaxing room setups work like a charm.

·      Consideration stage ads. These people need more information, so hit ‘em with your amenities (Wi-Fi, breakfast), comparisons, reviews, ratings, and testimonials. Show them visuals of your accommodations and the local area.

·      Booking/conversion stage ads. Urgency works best here. Phrases that get people to click to book now, like “Limited rooms available,” and “Book now and save.” 

·      Loyalty stage ads. Guests who have stayed with you before, even just once, are more cost-effective to convert again compared to chasing down new customers. Create some ads for these people by highlighting perks, upgrades, and exclusive deals they can’t get through other places. For example, you can use lines like:

“Book direct for free late checkout,” “Exclusive returning guest discount,” or “VIP upgrade on your next stay.” It also helps to use personalized copy like, “Welcome back to [your hotel name].” along with imagery of your best amenities.

Loyalty ads drive repeat bookings and increase lifetime value by bringing people back. 

·      Remarketing and nurturing prospects who got away. In addition to targeting people in all funnel stages, you want to bring people back who clicked but never booked or signed up for your email list. Run retargeting ads to show them what they looked at and offer them incentives or discounts. This is a great time to leverage social proof.

By matching your ad content to meet potential leads where they are in their journey, your ads will be more relevant and you’ll get more conversions.

Optimize your landing pages

Having a great ad doesn’t necessarily mean it will drive conversions. If your landing page is confusing or the booking process is clunky, you’ll lose people. That’s why landing page optimization is often where people see the biggest gains.

As a foundation, create a specific landing page for each target audience. You need a dedicated landing page for ads that target each funnel stage. Landing pages should be simple and clear and should be free from all distractions (like links and menus) that invite a user to click away. You want one offer and one call to action.

Social proof is critical in the hospitality industry. Show guest reviews from Tripadvisor, Google, Trustpilot, etc. It also helps to show photos of real guests enjoying their stay (with their permission). Showcasing reviews will reduce anxiety and hesitation, especially for people comparing you with other options. 

If your landing pages show pricing, make sure you’re up front about all fees. Be clear about what’s included, like tax, breakfast, and service fees. People hate hidden fees. If a guest’s experience doesn’t match the impression they get from the page where they booked, they’ll probably leave a bad review.

Talk to your website developer and have them trigger a follow-up email that goes out to people who start filling out a booking form but stop. The email should show them what they left behind and you can sweeten the deal by offering a small discount or other incentive.

Having a smooth flow after a person clicks on your ad can help you convert far more prospects. Everything you can do to reduce friction and increase trust compounds.

Get your bid and budget strategies down

To get conversions, your bidding strategy and budget need to align with a variety of factors, including funnel stage and seasonality.

·      Increase bids for high-intent keywords, use moderate bids for middle-funnel ads, and go lower for awareness and discovery. 

·      Watch for online travel agents (OTAs) and large hotel chains that bid on your property’s name or similar keywords. If they undercut you in rate or bid too aggressively, you could end up with arbitrarily inflated costs per click. Research data shows this can cost around 47% more per click.

·      Adjust your bids and budget during travel seasons, events, and holidays. During off-peak seasons you may want to stick with pushing awareness. 

·      Allocate your budget proportionately across all funnel stages. 

·      Use Google’s automated bidding tool for the conversion stage, but use manual methods for the consideration and awareness stage. 

The right bidding strategy will ensure you don’t overspend for low-intent clicks or underinvest in more profitable funnel stages.

Use multiple channels and ad formats

PPC is more than search. When you use different channels and ad formats you’ll reach people in a variety of places. 

·      Search ads (Google, Bing). Search ads capture high-intent demand users. They’re great for the conversion and compare phases and can make use of extensions like call, location, and reviews.

·      Display and discovery/native ads. Display ads are excellent for the awareness stage. They reach people browsing travel blogs and using apps. With these ads, visuals are everything.

·      Social media ads. Platforms like Facebook, Instagram, YouTube, and TikTok are great for the awareness and consideration stages. They’re especially powerful for remarketing.

·      Video ads. Short-form videos can stir emotion, show off ambiance, and be used to create a mini virtual tour. These ads are great for top and middle funnel prospects.

·      Email ads. If you’re using email marketing, offer loyalty deals and off-peak discounts.

Paid search on social media converts better in hospitality than it does in other industries.

Leverage local targeting

Location matters in hospitality. Geotargeting can significantly improve your conversions and reduce wasted ad spend. You can use radius bids and location extensions to target people looking for accommodations within a certain radius. 

It pays to bid higher for people in feeder markets and origin cities during the holidays. You can also target departure cities for Arbnbs if that’s relevant to you. 

In your ad copy, include local cues like “Only 30 mins from downtown,” and “15 minutes from airport. If you know your audience well, include the origin city (“Fly in from Seattle & Stay with us just outside Olympia”).

When offered by the ad platform, use local extensions to note your address, phone number, and any other elements offered. This will generate more bookings from mobile users.

Go deep with retargeting

Most people who click your ads or visit your website won’t book right away. Retargeting will help convert these “warm but not ready” leads into guests eventually. 

When you target people who visited your site without converting, show them ads with refreshed offers like a free breakfast or an upgraded view. Visual reminders will help bring them back. 

Show the specific rooms and properties to the prospect so the ad feels personalized. Use tools like Google dynamic remarketing and Facebook Product Ads. 

For guests who did convert, show them additional special offers and upgrades. Keeping them in your funnel will make future conversions easier. 

Monitor ROI, adjust, and scale

It’s crucial to know when to pull back, push forward, test more, or scale. 

·      Define clear ROI goals. Know your target Cost-Per-Acquisition (CPA), Return on Ad Spend (ROAS), and guest Lifetime Value (LTV). If your ad spend yields bookings but loses money, it’s not working. 

·      Perform weekly and monthly audits. Refine keywords, ad creatives, and keep testing.

·      Scale what works. Once you have a campaign producing consistent returns, increase the budget there while watching for diminishing returns.

·      Adjust your offers and pricing. If conversion rates drop or your CPCs rise, start offering special packages like early-bird deals and loyalty perks.

The average travel and hospitality conversion rate for search is 3.55% so if you’re under that, there’s room for improvement. If you’re over that, scale carefully.

Ready to unlock powerful PPC performance?

If you’re ready to transform your PPC campaign into a reliable machine that fills your rooms and builds a solid pipeline for the future, we can help. At PPC.co, we specialize in creating full funnel PPC strategies for hotels, motels, and Airbnbs that convert into bookings, repeat guests, and long-term loyalty. Contact us today and let’s craft a PPC strategy that drives bookings and turns first-time guests into lifelong customers.