Tripadvisor offers its “CPA Meta Consumption” model based on net commission per stay, which complements its traditional CPC or cost per click model
Mirai was founded in Madrid (Spain) in 1995 and became a leading company in online distribution and direct channels. In order for each hotel or chain to define its best strategy in metasearch engines, Mirai addressed in this post the questions that may arise.
Does this CPA model discount cancellations and no-shows?
Yes, it is a net model. As in OTAs, the established commission would be applied excluding canceled reservations or no-shows. Therefore, this risk for hotels is eliminated, facilitating their participation in the program. At the end of each month, a reconciliation of reservations will have to be made, from which Tripadvisor will obtain the amount to be invoiced.
What initial commissions can be had?
Tripadvisor works with a system of buckets or groups of commissions starting from a minimum of 10%. Ask your metasearch integrator about the commission levels they can offer you. At Mirai, we offer 4 buckets (10%, 12%, 14% and 16%) that will be applied to final amounts (including taxes).
In which markets is it available?
Tripadvisor defines the concept of “silo” as the combination of market and device (for example, Spain+mobile or USA+desktop). Each integration partner will offer the combinations they consider and will make them available to their hotels, which will set the commission they want for each “silo”.
Do I have to keep the commissions active for a minimum time? And participate in any “silo”?
These commissions must be active for at least two months, since the Tripadvisor algorithm takes approximately three weeks to reach its optimal performance. It is not recommended, therefore, to make short-term changes, as it can be counterproductive for the results.
We also do not recommend setting up “silos” that have low traffic or few participating hotels, as Tripadvisor’s algorithms may not perform optimally due to lack of data.
What visibility will my hotels have in the different commission levels?
The visibility of your tickets depends on two factors: the quality of your bid (either in the CPA or CPC model) and the quality of your price compared to the OTAs. Therefore, CPA only differs from CPC in the way the bid is set, but in both cases, the higher the bid, the higher the visibility and vice versa.
In the case of CPA, you do not bid directly for a click, but rather a commission is established. Tripadvisor’s algorithm transforms this commission into a bid similar to the CPC to establish the ranking and, therefore, the visibility of your ad.
When will the Tripadvisor CPA model be available?
It is currently available, although only for a small group of Tripadvisor partners (here you can see the partners with whom you can promote your establishment on Tripadvisor). Consult your integration partner if it is one of them. At Mirai we are proud to be able to offer the CPA model to all our clients.
Is it possible to combine CPC and CPA bidding in different markets for my hotel?
Yes, Tripadvisor allows you to choose the type of bid at the “silo” level and, therefore, it is possible to combine CPA and CPC models. However, mixing bidding systems in different “silos” for the same hotel is an advanced functionality that requires much more control and monitoring work, so for most, choosing between CPC or CPA seems like a better decision.
What attribution window does Tripadvisor CPA work with?
The window is 30 days, that is, it will take into account all reservations made up to 30 days after a click on Tripadvisor, regardless of their check-in or check-out dates.
Do OTAs also participate in the CPA model?
At the moment it is not open to OTAs, this model is exclusive for the direct channel.
What will my ads look like?
There is no difference for 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 the customer to the hotel’s website and the reservation ends there. The novelty is the participation model that is commission instead of CPC. In the Instant Booking and Tripadvisor Plus programs, customers book without leaving Tripadvisor (they never reach the hotel’s website, therefore) and work exclusively on a commission model and not CPC.
We have already written several posts about both programs that you can find on our blog: Instant Booking and Tripadvisor Plus.
I am already investing in Tripadvisor in the CPC model, is this CPA model for me?
The best participation model in any metasearch engine is the one that gives you the best balance between booking volume and profitability. Therefore, our recommendation is to know your numbers in the current campaigns in CPC, including the cancellation rate in your calculations. If the return (ROI, ROAS) becomes a commission higher than what you can get now with the CPA program, this model can offer you better results. If, on the other hand, your numbers are better, it seems that the CPC system is more suitable for your hotel. Remember to understand the relationship between volume and profitability, since they are usually inversely proportional. Having a good profitability but low volume is also not recommended.
How can I see my reservations made through Tripadvisor CPA?
It will be the Tripadvisor CPA integrator that will offer you the visibility it considers. At Mirai, we have included the commission information in the details of your reservations in the Mirai Metasearch panel.
How can I participate?
To participate, contact your integration partner, who will explain the steps to take.
Conclusion
This model is intended to be the gateway to the world of metasearch on Tripadvisor for many of the hotels that are now offline, so that they can try it without risk.
As it has zero risk, if you don’t participate yet, this is the time to test it, compete with OTAs and analyze the benefits it can bring to your direct sales.
Source: Mirai
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