Google plans to reduce hotel listings in its search results across Europe, a move prompted by competitors’ complaints about declining traffic. Users will increasingly need to rely on aggregators and comparison platforms for information.
This decision aligns with the EU’s Digital Markets Act (DMA), which prohibits tech giants from favoring their own services on their platforms. Enacted last year, the law aims to curb the dominance of major tech companies.
Changes to Comply with EU Regulations
Since the DMA’s introduction, Google has faced challenges balancing demands from price comparison sites, hotels, airlines, and small retailers. Many claim their direct booking clicks have dropped by 30% due to recent Google updates.
In response, Google proposed further changes to its European search interface. These include:
- Expanded, standardized blocks to let users choose between comparison sites and supplier websites.
- Formats displaying competitors’ prices and images.
- New ad units designed specifically for comparison sites.
Additionally, in Germany, Belgium, and Estonia, Google plans to remove hotel location pins on maps and eliminate results listed below the map.
The European Commission is currently evaluating Google’s proposals for compliance. Non-compliance with the DMA could result in fines of up to 10% of annual global revenue, notes NIX Solutions.
Industry Response and Concerns
The German Hotel Association has expressed concerns about these changes, stating that reverting to basic blue links—favored by comparison sites—might reduce transparency and convenience for users.
“For independent hotels and small businesses, such a shift lowers visibility, increases dependency on third-party platforms, and erodes profitability due to high commission fees,” the association noted.
Meanwhile, the lobby group eu travel tech, which represents companies like Booking.com, Airbnb, and Expedia, criticized Google for not fully addressing the issue. It urged the European Commission to hold Google accountable for potential DMA breaches.
As this situation evolves, we’ll keep you updated on further developments.