Google has recently engaged in promoting its own travel solution in order to monetizing its vacation rental and apartments business. Google’s new vacation rental initiative includes a 4-pack listing shown above-the-fold in travel-related searches, pulling data from major OTAs like Booking.com, VRBO, Hotels.com, RedAwning.com, etc. Through this approach, Google will certainly connect the dots between travel, trips and maps products so their platform integrates all three components on all devices (desktop, tablet, mobile). Here is such a listing for a “Vacation rentals in North Myrtle Beach” search:
Google is a giant, so nobody can stop this. At this stage, people fond of the concept of a free market don’t believe Google should be legally forced out of this effort (on the premise that they become a monopoly or that they use their search platform to gain an unfair advantage). This is what Amazon has done on many verticals and it is the job of the free market and the entrepreneurial spirit to fight back and offer other viable alternatives.
On a careful analysis, Google looks like is building upon on an obsolete path. We should not be too worried about them as long as they don’t figure out and act on the new reality, the new paradigm of the online marketing. The future is not of search engines when it comes to interacting with businesses and building brands. If a business wants to use the internet well and build a strong brand, it should act on a multitude of fronts which are not evolving much around search. Included in this new paradigm and approach is everything related to the opportunities opened by the new platforms and technologies which lead to people changing their behavior online, departing from the old “let’s google for whatever” approach.
People are starting to interact more and more directly with businesses through new channels like Facebook, WhatsApp, etc. using messenger and chatbots. More and more businesses open themselves to direct interaction with people and find ways to reach out to and be found by potential clients. If a person needs to search on Google to buy something, that person is in general of little interest for a business that is working hard toward building a brand and awareness and creating loyal customers.
Businesses need to find ways to get in front of potential clients before those people need their product and are ready to buy. This way when a potential client needs something, the person turns to the businesses he or she has already interacted with, talked to. It’s like a mom and pop store on a street in a town: it is a poor business model for the business owner to wait for people to come into the store. It is much smarter to get out there, interact with people, become known, without continuously shouting “buy, buy, buy” but through meaningful interactions and conversations, offering value and capturing attention and interest. This way people will want to come into his business because in their mind he has what they need and want.
A delicate truth is that Google’s effort will initially have a negative impact on the local accommodations businesses, especially because the accommodations industry on the Grand Strand is a non-classic rental business model. This business model makes it hard for the Grand Strand accommodations businesses to push their properties through the OTA platforms Google works with. Yet those businesses that depart from the old search model and act fast and efficiently by adopting the new paradigm of online interaction will not only not be affected much, but they will actually build a base of raving fans, loyal customers that will want to do business with them.
On a short term, local vacation rental companies need to look into maximizing the presence of their company on the platforms Google pulls the listings from for their 4-pack. But the new paradigm in online marketing relies less and less on mere Google searches. A recent article published on skift about Hilton’s new marketing strategy says: ” Hilton said television, online, and social media ads will continue to educate travelers about the benefits of booking direct and joining the Hilton Honors loyalty program.”
In today’s market, companies have a chance to protect and build their brand. This is why they don’t rely on people who are ignorant of any travel-related brand and search on Google, making their purchase decision merely on what company is cheaper. Those are not the best clients. On the other hand, there are ways, mechanisms, platforms and tools available today to reach out directly to potential customers and convey the right message for the company, what it stands for, its unique selling proposition, while building a relationship in the process. No valuable, meaningful relationship can be built through Google search for the cheapest offer. Google will fight back and will push hard to forcing its search platform and approach onto the tourism industry. But they don’t have the future on their side on this approach. The new paradigm of conversation-based marketing will render Google’s search-centered approach obsolete.
Sources used:
- https://skift.com/2019/10/05/google-elevates-vacation-rentals-with-hotel-like-treatment-in-search/amp/
- https://www.redawninggroup.com/press/vacation-rentals-on-googles-expanded-vacation-rentals-experience/
- https://skift.com/2019/09/05/hilton-doubles-down-on-direct-booking-ad-strategy-by-targeting-younger-travelers/