Impact of new DMA Legislation on Google and Hotels in Europe

EUROPE – The European Union’s Digital Markets Act (DMA) is reshaping how digital platforms operate, and its effects are now being felt across the hospitality industry.

As Google adjusts to meet new regulatory demands, hotels are left evaluating strategies to maintain visibility and revenue.

The DMA, introduced by the European Commission, aims to ensure fair competition by curbing the dominance of large digital platforms.

These platforms, labeled as “gatekeepers,” are subject to stringent rules if they meet specific criteria.

This includes having significant economic influence, acting as intermediaries for large numbers of users and businesses, and being firmly entrenched in the market.

Gatekeepers, which now include platforms like Google and Booking.com, are obligated to comply with rules that level the playing field.

They must allow businesses to promote services independently of the gatekeeper’s platform and avoid giving preferential treatment to their own offerings over those of third parties. Non-compliance can result in substantial fines and penalties.

Google, designated as a gatekeeper under the DMA in 2023, has implemented several modifications to its hotel-related search results within the European Union.

These changes aim to align with the legislation but have significantly altered the digital marketing landscape for hoteliers.

One notable update is the introduction of the ‘Places sites’ section. This feature prioritizes organic search results from online travel agencies (OTAs) and metasearch platforms, which are displayed free of charge.

Unlike traditional cost-per-click models, these listings rely on dynamic algorithms to determine their positioning. As a result, the ‘Places sites’ section appears prominently, often above Google Maps and the Google Hotels metasearch tool, diminishing visibility for Google’s own services.

Additionally, Google Maps is now less interactive within search results. Users must open a separate window or tab to access its full features, an adjustment aimed at reducing Google’s dominance in this area.

These changes present both challenges and opportunities for hotels. While the prioritization of OTAs and metasearch platforms could dilute direct visibility for individual hotels, it also opens avenues for those willing to invest in strong SEO strategies.

By leveraging organic content and diversifying promotional efforts, hotels can still capture guest interest and drive bookings.

However, there are concerns about the decreased prominence of Free Booking Links (FBL) on Google, which has led to a measurable drop in clicks for some properties.

This shift underscores the importance of adapting marketing strategies to remain competitive in an evolving digital landscape.

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