Expedia Travel Ads have long been a cornerstone for hotels looking to boost bookings, especially during need periods. However, the platform has undergone significant changes in recent years, with rising costs posing new challenges for hoteliers.
Understanding the Cost Surge
Historically, Expedia Travel Ads were known for their affordability. Before 2020, most markets outside major cities enjoyed cost-per-click (CPC) rates well below $1.25. However, the landscape has become increasingly competitive, with CPCs steadily climbing since 2023.
A key factor contributing to this rise was Expedia’s decision in early 2024 to increase bid minimums from $0.25 to $0.50 for all markets. This move, coupled with growing competition and Expedia’s strong market position, has fueled a sustained upward trend in advertising costs.
Decoding the Data
An analysis of cost-per-click for the market leaders across 20 markets reveals that the average CPC has surged by 30.09% from January 2023 to January 2025. This increase occurred in two phases: a significant 20.10% jump from 2023 to 2024, followed by a further 8.31% rise from 2024 to 2025.
While the overall trend is undeniable, the impact varies across markets. Some destinations, like Boise, Idaho, have experienced dramatic increases exceeding 148%, while others, like Tampa, FL, have seen only minor fluctuations.
| Market | January 2023 Market Leaders CPC | January 2024 Market Leaders CPC | January 2025 Market Leaders CPC | % Change: 23 vs. 25 |
| Boise, ID | 1.18 | 1.82 | 2.93 | 148.31 |
| Lubbock, TX | 1.23 | 1.53 | 2.27 | 84.55 |
| Lexington, KY | 1.29 | 1.94 | 2.19 | 69.77 |
| Reno, NV | 1.52 | 2.32 | 2.23 | 46.71 |
| New Orleans, LA | 1.67 | 2.3 | 2.35 | 40.72 |
| Anaheim, CA | 2.16 | 2.73 | 2.96 | 37.04 |
| Austin, TX | 2.55 | 2.93 | 3.46 | 35.69 |
| Cheyenne, WY | 1.34 | 1.95 | 1.77 | 32.09 |
| Charlotte, NC | 1.64 | 2.08 | 2.16 | 31.71 |
| Richmond, VA | 1.7 | 1.6 | 2.2 | 29.41 |
| Atlanta, GA | 1.95 | 2.54 | 2.5 | 28.21 |
| Fort Wayne, IN | 1.47 | 1.6 | 1.87 | 27.21 |
| Denver, CO | 2.23 | 2.56 | 2.72 | 21.97 |
| San Francisco, CA | 2.57 | 3.43 | 3.07 | 19.46 |
| Montreal, QC | 1.31 | 1.57 | 1.55 | 18.32 |
| Columbus, OH | 2.08 | 2.28 | 2.34 | 12.50 |
| Pittsburgh, PA | 1.98 | 2.07 | 2.2 | 11.11 |
| Fort Collins, CO | 2.64 | 2.42 | 2.72 | 3.03 |
| Norwalk, CT | 1.96 | 1.96 | 2 | 2.04 |
| Tampa, FL | 2.19 | 2.4 | 2.2 | 0.46 |
| 1.83 | 2.20 | 2.38 | 35.01 |
Adapting to the New Normal
These rising costs underscore the need for hotels to adopt proactive strategies to maintain visibility and cost-efficiency on Expedia. Here are some key recommendations:
- Stay Informed: Continuously monitor CPC trends in your target markets to understand cost fluctuations and adjust your strategies accordingly.
- Bid Strategically: Refine your bidding approach to balance visibility with budget constraints. Consider factors like market competition, seasonality, and campaign objectives.
- Target Effectively: Optimize your ad targeting to reach the most relevant audience segments, improving conversion rates and maximizing the impact of your ad spend.
- Optimize Relentlessly: Regularly analyze campaign performance and make data-driven adjustments to ensure you’re getting the best possible return on investment.
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