With AI, 11% more bookings and a 7-digit increase in revenue for the Motel One Group

In a world that is rapidly digitizing, companies like the Motel One Group face a key challenge: How can they keep up in this dynamic environment, address their target groups and optimize their marketing strategies at the same time? Traditional approaches are reaching their limits here, as increasing complexity requires innovative solutions. As pioneers in AI marketing, we were not only able to increase marketing efficiency by using an AI-driven campaign format, but also achieved impressive 7-digit sales for the Motel One Group.

Challenge: Artificial intelligence — the key to success for growth?

The Motel One Group, a renowned German hotel group, covers 13 countries and 94 hotels (2024), making its product portfolio very diverse. The complexity of their marketing requirements is correspondingly high, which presented the Motel One Group with the challenge of developing innovative approaches.

Although the hotel group already had powerful search and hotel campaigns, it was looking for new strategies to promote its growth while ensuring high performance efficiency. The focus was in particular on achieving a return on ad spend (ROAS) that met the high standards of search and hotel ads, as well as generating additional revenue and increasing efficiency at the same time. In addition, ensuring ethical and data protection guidelines is a top priority when using AI tools. Compliance with these guidelines requires an algorithm monitoring tool, which also ensures that AI does not generate discriminatory, manipulative, or biased content.

Solution: Implementing AI into marketing strategy

Integrating AI into the digital marketing strategy as part of PMax for Travel Alpha was a strategic decision that was made back in mid-2022 in close collaboration with the Motel One Group. This groundbreaking measure opened up new opportunities for collaboration in the area of AI-driven marketing.

The automated creation of ads using AI was particularly convincing, which both promised time savings and ensured consistent and appealing ads. TROAS Smart Bidding also made it possible to optimize bids in real time, which immediately showed impressive results and exceeded expectations. In contrast to traditional campaign types, AI did not require a long learning period to achieve extremely efficient results. The AI also automatically made the right decisions regarding placement and ad combinations for each individual user in order to achieve the main goal of the campaign, which was clearly defined: The Motel One Group aimed for incremental sales growth without affecting ongoing Google Search campaigns or shifting traffic.

In order to continuously check the results of the new AI approach, in addition to quantitative KPIs (key performance indicators: sales, revenue, clicks), qualitative benchmarks (CTR, ROAS, CPC, engagement rates) were implemented to ensure that the content generated by the AI was relevant and appealing. Algorithm monitoring tools were also integrated so that the AI used did not generate discriminatory or biased content. With multi-level security protocols and emergency plans, they were also prepared for any potential AI problems.

Result: cost reduction of 46% per booking

The implementation of the AI-driven campaign format led to impressive results for Motel One Group.

The use of AI enabled a smooth implementation of various tests, which resulted in an ideal portfolio strategy for the hotel group. With the new powerful portfolios for PMax for Travel, data can be collected and analyzed even faster, thus increasing efficiency.

This led to 7-digit incremental revenue growth with 32% more efficient ROAS compared to search campaigns. In addition, the Motel One Group benefited from a 14% lower CPC (cost per click) and a 15% higher average shopping cart value compared to search campaigns.

The implementation of the AI-based campaign format saved enormous time and increased efficiency: At least 58% time savings with PMax for Travel compared to a regular PMax campaign. As a result, the focus was placed on the strategic development and orientation of the Motel One Group.

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Outlook

Performance Max for Travel was successfully established as an integral part of the marketing strategy at Motel One Group. This advanced campaign format has proven itself alongside traditional marketing approaches by promoting incrementality and scalability in an outstanding way.

The use of the AI-based campaign format has made it possible to continuously launch efficient and targeted advertising campaigns that are specifically tailored to the needs and behavior of the target group.

The ambition to position itself as a first mover in the digital marketing environment remains strong. In this context, together with the Motel One Group, it is planned to further intensify the integration of artificial intelligence into marketing processes by testing and implementing further AI-based campaigns. This strategy will not only make it possible to further increase campaign efficiency, but also to react proactively to market changes and customer needs.

For the coming months, our focus is on optimizing the performance of our campaigns by using advanced analysis methods and machine learning. This will help to achieve more precise target group approaches and personalized customer interactions. Data-driven decisions are put in the foreground in order to achieve an even deeper connection with potential guests and at the same time increase the effectiveness of advertising spending. Strategic development will continue, exploring innovative advertising technologies and creative approaches to ensure that the Motel One Group remains at the forefront of digital transformation in the travel industry. By continuously developing and adapting digital marketing strategies, in particular by deepening competencies in the area of AI and data-driven marketing, the Motel One Group will successfully expand and consolidate its market position.

What is pMax for Travel?

Performance Max for Travel, or PMax for Travel for short, is a highly developed, AI-driven campaign format that was developed specifically for the travel industry. The performance is based on automating numerous areas of digital marketing, including the automated creation of ads and bid strategies. By using deep learning algorithms, the platform is able to recognize complex data patterns and make optimal marketing decisions based on them.