TL;DR:
Google Ads can be a powerful engine for direct bookings, but only when campaigns are built with precision and maintained with care. This post uncovers 9 high-impact mistakes, many specific to boutique hotels, that silently drain your ad spend and kill ROI. Use this as your roadmap to transform your ads from money pits to profit centers.
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Why Your Google Ads Budget Is Disappearing (And It’s Not What You Think)
If you’ve ever run Google Ads and felt like you were lighting money on fire, you’re not alone. Many boutique hotel owners and marketing managers feel frustrated by the lack of return, especially compared to commissions paid to OTAs.
But the platform isn’t broken. The problem lies in how campaigns are set up and maintained.
And most of the biggest issues aren’t obvious.
This post pulls back the curtain on the most expensive, often-overlooked errors that sabotage hotel ad performance, plus how to fix them. Whether you manage your campaigns in-house or through an agency, these insights will help you regain control and drive more direct bookings.
9 Common Google Ads Mistakes Draining Your Budget
Use the following as a diagnostic checklist for your current or past campaigns.
Sign #1: Your Keyword Strategy is Flawed
Keyword targeting is the foundation of Google Ads. If it’s off, everything else crumbles. Overusing Broad Match without Smart Bidding leads to irrelevant traffic… think someone searching “hotel jobs” clicks on your luxury resort ad.
Lack of negative keywords is a silent killer. Hotels should filter out terms like:
- “jobs”
- “cheap” or “free”
- “reviews”
- Locations you don’t serve
Poor ad group structure, catch-all groups with many unrelated keywords, makes your ads less relevant and drives up cost-per-click.
Start with Exact and Phrase Match, build robust negative keyword lists, and group keywords thematically.
Learn more about keyword match types here.
Sign #2: You’re Getting Clicks, But No Calls or Conversions
Do you have high traffic and no leads? You likely have a message mismatch.
- The user’s search intent doesn’t align with your ad or landing page
- Your headline and offer may not resonate or feel trustworthy
- You might have a low Quality Score, which means Google charges you more for worse placement
Pro Tip: Take time today to run a message-intent audit – Does your ad promise what your landing page delivers?
Sign #3: You’re Not Using a Dedicated Landing Page
Sending users to your homepage is like inviting someone to a hotel lobby without showing them the rooms.
Your landing page should:
- Match the message and offer in your ad
- Have a single, clear CTA like “Book Direct & Save”
- Be mobile-first, fast-loading, and visually appealing
Common issues include:
- Slow load speeds (especially on mobile)
- Too many distractions (navigation menus, external links)
- Lack of trust signals (e.g., reviews, awards, guarantees)
Sign #4: You’re Neglecting Ad Assets (The ‘Free’ Ad Real Estate)
Ad Assets (formerly called Extensions) dramatically boost your ad visibility and click-through rate.
Essential assets include:
- Sitelinks: “Rooms,” “Specials,” “Location,” “Events”
- Callouts: “Book Direct and Save,” “Free Breakfast,” “Boutique Luxury”
- Structured Snippets: Highlight amenities like “Free Wi-Fi, Pool, Pet Friendly”
- Call Asset: Adds a tap-to-call button
- Location Asset: Shows your address and map
Ads with extensions appear larger and more credible, attracting more qualified clicks.
Sign #5: Your Conversion Tracking is a Black Box
You can’t improve what you can’t measure. Many hotels track soft conversions like “visited 3 pages” instead of actions tied to revenue. Without accurate tracking, you won’t know which keywords, ads, or audiences are performing.
Ask yourself: “Do I know my actual cost per booking?” If not, it’s time to fix your conversion tracking.
Take the time to set up GA4 events for bookings, calls, and form submissions. Then import them into Google Ads.
Sign #6: Your Campaign Settings Are Working Against You
Two sneaky default settings eat up budget fast:
- Display Network on Search Campaigns: This shows your search ads on unrelated sites, not just Google search. It almost always results in lower-quality clicks.
- Presence or Interest Location Targeting: This shows your ads to people interested in your location, even if they’re not there. Not ideal for hotels targeting immediate bookings.
Sign #7: Your Campaign Hasn’t Been Touched in Months
Despite popular belief, Google Ads is not a crockpot; you can’t just “set it and forget it.” It’s not a thing, so stop thinking it is.
Left unchecked, campaigns degrade due to:
- Stale ad copy
- Outdated bidding strategies
- New competitors entering the market
- Shifting seasonal trends
Pro Tip: If you’re strapped for time or resources, at a minimum, review performance weekly and test new variations monthly.
Mistake #8: Ignoring the End of the Commission-Based Model
As of early 2025, Google’s commission-based hotel ad model is gone.
That means:
- You no longer pay per stay
- You now bid per click, whether someone books or not
- This dramatically increases financial risk. Every wasted click is money gone.
Without the commission-based pricing model, hotels need to optimize their ad campaigns very carefully to have a positive ROI.
Mistake #9: Your Data Feed is Inaccurate
Google Hotel Ads require real-time price and availability data. If your feed is even slightly off, users bounce immediately, and you still pay for the click.
Common errors include:
- Incorrect room rates
- Rooms showing as available when they’re sold out
- Currency or tax discrepancies
Feed management is critical. Poor data = zero chance of conversion.
Your Action Plan: How to Stop Wasting Money and Get Results
Here’s a step-by-step checklist you can use today to fix your Google Ads.
Step 1: Conduct a Keyword & Targeting Audit
- Review your Search Terms report weekly
- Add irrelevant searches to your negative keyword list
- Group keywords into tight, theme-specific ad groups
- Use Phrase and Exact Match types for better control
Step 2: Overhaul Your Ads and Landing Pages
- Write at least 2 Responsive Search Ads per ad group
- Implement all relevant Ad Assets
- Run A/B tests on headlines and CTAs
- Use tools like Microsoft Clarity to identify landing page issues
Step 3: Fix Your Campaign Settings & Tracking
- Disable the Display Network on Search campaigns
- Use the “Presence” location setting only
- Track bookings, calls, and inquiries via GA4
- Import conversion actions into Google Ads
Stop Guessing, Start Optimizing
Google Ads isn’t inherently expensive; it’s just easy to waste money if you’re not careful.
By recognizing and fixing the 9 silent killers outlined in this post, your boutique hotel can:
- Increase direct bookings
- Reduce OTA dependency
- Improve marketing ROI
Frequently Asked Questions
Is $20 a day good for Google Ads?
It’s a solid starting point for small businesses to test the waters. However, in competitive industries like hospitality, $20 may only yield a few clicks. Monitor ROI closely and scale up based on performance.
Is it worth spending on Google Ads?
Yes—when done right. Google Ads allows precise targeting of high-intent travelers. The key is optimization, not just throwing money at the platform. A well-managed campaign will outperform OTAs in ROI over time.
How do you tell if Google Ads are working?
Look beyond impressions and clicks. Focus on:
- Conversion Rate
- Cost per Conversion
- Return on Ad Spend (ROAS)
If you’re generating more in bookings than you’re spending, it’s working.
Greg is the founder and CEO of Stryde and a seasoned digital marketer who has worked with thousands of businesses, large and small, to generate more revenue via online marketing strategy and execution. Greg has written hundreds of blog posts as well as spoken at many events about online marketing strategy. You can follow Greg on Twitter and connect with him on LinkedIn.