Search Engines v Comparison Websites in the Hotel Industry
Search engines such as Google are failing on 2 fronts:
1. They are failing users because they struggle to deliver high
quality search results for people looking to purchase goods and
services. 2. They are failing businesses because the
pay-per-click advertising model is outdated; as a consequence a
large part of a company's advertising budget is wasted.
A new generation of comparison websites are emerging that give
users a level of sophistication to searches for goods and
services. They also use the pay-per-sale advertising model which
improves efficiency for businesses.
I will use the hotel industry to demonstrate these claims.
BUSINESS-RELATED AND INFORMATION SEARCHES
Google searches can be categorised into two types; information
searches and business-related searches.
Information searches Information searches don't normally end in
a sale. They will have very few or no sponsored links in the
search results. The results obtained are of a good quality and
the user will usually find what they want within the first few
sites viewed. This aspect of Google will not change. Google will
always be excellent for information searches.
Business-related searches Business-related searches are ones
that usually end with a sale. They will have a large number of
sponsored links in the results. The user can be overwhelmed by
the number of relevant sites returned and spend a long time
viewing each site to see which one has the cheapest prices. The
results may be distorted by unscrupulous webmasters who have
used underhand tricks to manipulate their site to the top of the
list.
ADWORDS AND SEARCH ENGINE OPTIMISATION (SEO)
There are 2 ways in which a commercial website owner can get
their web pages into the Google search results. The first is by
bidding for "search keywords" in Google Adwords and appearing as
a "sponsored link". The second is by performing search engine
optimisation (SEO) on the website and hope that this will
improve your position in the general search results.
Adwords Adwords use the pay-per-click advertising model. Adwords
can be an expensive way to market a website. Many companies will
bid on the same "search keywords" pushing up the price. The
company that bids the highest price will appear as the top
sponsored link. The next highest bidder will appear as the
second sponsored link, and so on.
The pay-per-click model is far from perfect. There is "click
fraud" where automated website software generate bogus clicks to
run up large advertising bills. Just because a user clicks
through it doesn't mean that they make a purchase. Quite often
the click to sale ratio can be as low as 2-5%.
SEO SEO can also be expensive. It takes time and requires
specialised knowledge that does not come cheap when contracted
in. SEO, when performed to the maximum requires that every word
and every link on a page be analysed and positioned correctly. A
large part of SEO is also in the effort in acquiring inbound
links; links from other sites to your own. To obtain high
quality links from high quality sites takes a huge amount of
time if done properly.
EXAMPLE: HOTEL INDUSTRY
Taking the hotel booking industry as an example we can show the
ineffectiveness of Google. If you are looking to book a hotel in
Paris then you may type "Paris Hotels" into Google to see what
websites are available. Users now know that they have a wide
choice of sites when booking hotels and the rates can vary
enormously between the hotel booking companies.
The sponsored links returned with this search seem to offer the
user a good choice of reputable hotel booking companies. What
the user probably doesn't know or care is that the cost to the
booking company from just clicking on one of these sponsored
links is as much as