Bid Management for hotels

Bidding what?!

Bid Management for hotels. Sounds easy. Right?

Maybe not – but don’t worry: we’ll take it from here. Get in the passenger seat, hold on tight and let’s go, we are ready to take off!

Instead of deciphering CPC and CPA like Egyptian hieroglyphics, we’ll show you how to do it right. “Decode” becomes “understand”. Very easy.

In a nutshell- what is bid management and how does it work properly?

At an age where hotels are expected to be completely digitized and achieve 100% accuracy on “who to offer what”, the dilemma of making the right offer at the right time becomes more pressing than ever.

Typically, it is the hotelier who sets the price throughout the different sales channels in hope that it reaches the right guest at the right time. In this case, when using the bidding mechanism, the hotel displays a price and the potential guest makes an offer related to their budget and expectations. Bid Management is oriented towards different goals, such as click maximization, conversion optimization and revenue maximization.

In addition, terms such as ROI (Return on Investment) and ROAS (Return on Advertising Spend) are used in relation to ad campaigns where effectiveness and available budget play an important role.

Is bid management is also important for SEO?

Yes, absolutely. As its main goal is the optimization of landing pages; some keywords must reach a high conversion rate and many websites can profit from this optimization.

SEOs not only provide the estimated values of the AdWords keyword planner, but also accurate data of which are keywords and which are not. All in all, it provides data on which keywords work best, so they can be distributed among organic and paid searches.

Let’s get this party started!

Some of the more hotel-oriented targets within Bid Management are: Boosting your occupancy rate and early bookings, boosting your last-minute sales, lowering your OTA commissions and, finally, boosting your direct sales. Moreover, the system makes real-time calculations of the price that guests are willing to pay to stay at your hotel, helping you improve your yield management.

Making use of bid management avoids the problem of getting involved in long studies about how to establish a hypothetical ideal price. This gives hotels the chance of selling the right room at the right price and moment to the right guest.