Why paying more for search is giving you less

Search costs are rising, results are shrinking, but what does that really mean for your business and what can you do about it?

Editorial illustration of a hospitality marketing manager in a busy marketplace watching a giant sack of coins labelled PPC being drained into a funnel, symbolising rising PPC costs and shrinking results.

Google’s new AI panels now take the top slots. OTAs still dominate paid and organic results because they can outspend everyone else. Even when you invest in PPC, you’re often paying into a system that rewards the very platforms taking your bookings.

What’s really happening in search

  • AI panels are eating into the most valuable positions
  • OTAs outbid and outrank in both paid and organic
  • Average CPC is climbing year on year
  • A growing share of clicks come from bots or AI, not real guests

And that last point matters

According to Statista, more than half of global web traffic in 2024 was automated, with the Thales Bad Bot Report finding that 37% of that is malicious.

Fastly reported that nearly 80% of crawler traffic in 2025 is now AI-driven, with Meta responsible for more than half. With a Wall Street Journal article highlighting Adalytics data, that showed that at least 40% of ad spend is wasted on fake traffic.

At the same time, average UK CPC has risen from £2.07 in 2021 to £2.38 in 2023, with another 6% increase in 2024.

There is an even darker undertone from some, on why search is getting less and less results driven… Some analysts argue that this decline in quality isn’t just bad luck or spam outpacing the algorithms, it’s deliberate.

As Cory Doctorow and others have noted, big platforms have an economic incentive to make organic search less useful over time, nudging operators toward higher PPC spend. Business leaders such as Odysseas Papadimitriou (WalletHub CEO) have suggested that lowering accuracy to drive ad revenue is a strategy hiding in plain sight. And still, we pour money their way.

But isn’t PPC still valuable?

Yes, PPC still has a place. You may hear arguments that “search is just the top of the funnel” or “visibility matters even if not every click converts.” That’s true in principle.

But…

If the funnel itself is flooded with irrelevant or fake traffic, then the quality of the leads you’re paying for is also falling.

That doesn’t mean you should pull the plug on PPC. It does mean you need balance. Let the OTAs and paid platforms drive broad discovery if you want that. But don’t rely on them as your only source of demand. Your real control lies in loyalty, rebooking, and guest spend once they’re with you.

Editorial illustration of a hospitality marketing manager standing beside a large sack of coins labelled PPC at a market stall, considering the value of their spend. Hand-painted watercolour style, symbolising that PPC still has a place but comes at a high cost.

Beware the “new OTA in disguise”

You’ll have seen a rise in Platforms promising to “fill your occupancy gaps” – especially short weekend breaks.

On the surface, they look like solutions. In reality, many are just OTAs in new packaging. Some even build business models around reselling freely available data, like attractions or routes with no benefits or add-on, as if they’re proprietary content.

These don’t build your brand or loyalty. They provide short-term solutions, whilst shifting control further away from you. You deserve more than a temporary fix. Real solutions should strengthen your brand and generate long-term results.

Editorial watercolour illustration of a glossy market stall labelled “The Solution”, with faint OTA letters visible underneath the paint. The counter is filled with jars and packets labelled as quick fixes. Guests from different walks of life pause with mixed reactions. Satirical image symbolising OTAs rebranded as new platforms.

What you can do differently

If you want to stay in control and put your brand first…

  • Use PPC where it adds value, but don’t over-rely
  • Let OTAs feed broad discovery, but focus on converting those guests into yours
  • Build rebooking and loyalty programmes to bring them back directly
  • Keep guests engaged on-site, through apps, signage and targeted notifications
  • Create simple, direct booking pathways that bypass OTAs completely

This is how you reduce dependence on paid acquisition channels like Google, Meta, and OTA’s, and turn short-term discovery into long-term loyalty.

Editorial watercolour illustration of a female hospitality marketing manager standing beside scales. One side is piled with coins, the other side shows happy guests holding a sign “Your brand”. The balance is steady, symbolising clarity, control, and the long-term value of focusing on your brand.

How Holidaymaker can support you

Holidaymaker is built for this balance of PPC and brand, in one connected system. Working across:

  • Guest surfaces such as: websites, apps, signage, kiosks and websites
  • Rebooking and retention tools that keep guests with you
  • Syndication and integrations that finally connect disjointed systems

At every touchpoint, you keep the direct link with your guest – before, during and after their stay.

Proof from across the Holidaymaker Platform

Here’s what Holidaymaker clients achieved in July:

  • 5,599 daily active users on average, 69% signed in with a booking
  • “What’s On” (events) and “Things to Do” (activities) sections exceeded 4 million views combined
  • Features like notifications, maps and offers ranked consistently in the top ten most-used
  • One client generated £17.5k in brand‑new rebookings – this is straight net‑new revenue, not reallocated spend from other channels.

Their guests are not just browsing, they’re booking, engaging, and spending more when the operator owns the tools.

Closing thought

Search behaviour is shifting. Costs are rising. OTAs and new “solutions” are finding ways to capture value that should sit with you. But you don’t have to compete on their terms. By investing in channels you own, you build stronger relationships, higher rebooking rates and more spend from every stay.

If you want to see how other operators are already doing this, arrange a quick walk-through with our team.

Book a Walkthrough 

Not ready yet? Subscribe now to stay updated – see the box below…

author
Written by Allana

Subscribe to updates