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Tripadvisor offers its net commission per stay-based “CPA Meta Consumption” model, which complements its traditional CPC or cost-per-click model. It joins Google Hotel Ads, trivago and Skyscanner, which already use this participation model on their comparison sites.
In this post, we answer the most common queries to help each establishment or hotel chain define its best metasearch engine strategy.
Does this CPA model exclude cancellations and no-shows?
Yes, it is a net model. As with OTAs, the agreed commission is applied, excluding canceled bookings and no-shows. It therefore removes the risk for hotels, making it easier for them to participate in the program. At the end of each month, a bookings reconciliation report is generated, which Tripadvisor uses to calculate the invoice amount.
What commissions are available?
Tripadvisor works with a bucket system, or commission groups, starting with a minimum commission of 10%. Ask your metasearch integration partner about the commission levels they can offer you. At Mirai, we offer four buckets (10%, 12%, 14% and 16%), which are applied to the final amounts (including taxes).
Which markets is it available in?
Tripadvisor defines “silo” as the combination of a market and a device (for example, UK+mobile or USA+desktop). Each integration partner will offer the appropriate combinations and make them available to their hotels, who set the commission they want for each “silo”.
Do I have to keep the commissions active for a minimum period of time, and can I participate in any “silo”?
These commissions should be active for at least two months, as it takes approximately three weeks for the Tripadvisor algorithm to reach optimal performance. It is therefore not advisable to make short-term changes, as this could be counterproductive.
Likewise, we do not recommend setting up low-traffic “silos” or those with few hotels participating, as the Tripadvisor algorithm may not work optimally due to a lack of data.
What visibility will my hotels have at the different commission levels?
The visibility of your entries is based on two factors: the quality of your bid (whether a CPA or CPC model) and the quality of your price compared to OTAs. Therefore, CPA only differs from CPC in the way the bid is set, but in both cases, the higher the bid, the greater the visibility and vice versa.
In the case of CPA, you do not bid directly for a click, but you set a commission. The Tripadvisor algorithm turns this commission into a bid similar to CPC to establish the ranking and, therefore, the visibility of your ad.
When will the Tripadvisor CPA model be available?
It is currently available, but only for a limited number of Tripadvisor partners (you can see the partners who can help you promote your establishment on Tripadvisor here). Ask your integration partner if they are on this list. Mirai is proud to offer the CPA model to all our clients.
Can I combine CPC and CPA bids in different markets for my hotel?
Yes, as Tripadvisor allows you to choose the bid type at the “silo” level, it is possible to combine CPA and CPC models. However, since combining bid systems in different “silos” for the same hotel is an advanced feature that requires much more checking and monitoring, most prefer to choose between CPC or CPA.
What attribution window does Tripadvisor CPA have?
The window is 30 days, i.e., it will take into account all bookings made up to 30 days after a click on Tripadvisor, regardless of their check-in and check-out dates.
Can OTAs also participate in the CPA model?
This model is not currently open to OTAs and is exclusive to the direct channel.
What will my ads look like?
There is no difference to the end customer: they will look exactly the same as if you were bidding on the CPC model.
Does this CPA model have anything to do with Instant Booking or Tripadvisor Plus?
No. This Tripadvisor CPA model redirects customers to the hotel website and the booking is completed there. The new feature is the participation model, which is commission-based instead of CPC. In the Instant Booking and Tripadvisor Plus programs, customers book without leaving the Tripadvisor site (so they never reach the hotel’s website) and they work exclusively on a commission model, not CPC.
We have previously written several posts about both programs, which you can find on our blog: Instant Booking and Tripadvisor Plus.
I already invest in Tripadvisor’s CPC model, is the CPA model for me?
The best participation model in any metasearch engine is the one that gives you the best profit-volume ratio. Therefore, we recommend having a good understanding of your figures in your current CPC campaigns, making sure to include the cancellation rate in your calculations. If the profit (ROI, ROAS) equates to a higher commission than you are now getting with the CPA program, this model could offer you better results. If, on the other hand, your figures are better, it may be that the CPC system is more suitable for your hotel. Remember to understand the relationship between profit and volume, as they are often inversely proportional. Having good profit but low volume is also not recommended.
How can I see my bookings made through Tripadvisor CPA?
Your Tripadvisor CPA integration partner will offer you the appropriate visibility. At Mirai, the commission information is included in your booking details on our Mirai Metasearch Dashboard.
How can I participate?
To participate, please contact your integration partner, who will explain the next steps.
Conclusion
This model is designed as a gateway to the Tripadvisor metasearch world, allowing the many hotels that are currently offline to try it risk-free.
As it has zero risk, if you are not yet participating, now is the time to try it, compete with the OTAs and analyze the benefits it can have for your direct sales.
About Mirai Metasearch
Mirai Metasearch connects your hotel to metasearch engines, achieving higher profitability than sales generated through OTAs. For more information, contact us at metasales@mirai.com
