A newer channel in Cendyn’ s analysis set, PMTG increased hotel bookings and revenue by more than 4x across all regions, according to the Cendyn Hotel Digital Marketing Performance Index 2025. Drawing on aggregated data from the Cendyn Digital Marketing Platform, the Performance Index identified a 262 % surge in conversion rate and improved cost efficiency due to the intelligent application of AI with guest data to find high-value audiences.

The report also highlights soaring media costs, which rose sharply YoY, increasing by 20 % to 40 % across digital platforms. Cendyn discovered that Google Hotel Ads cost-per-click rates rose 14 %, reducing click volume despite continued advertiser demand. Cendyn relates the sharp rise in media spend to intensified competition, increased bidding pressure from online travel agencies, evolving regulations and macroeconomic headwinds.

Overall, the first half of 2025 has uncovered a number of critical industry trends directly impacting hotel visibility, booking performance and marketing budgets. Assessing performance across Google’ s digital marketing products for January to June 2025 versus the same period in 2024, the report warns that without investing in AI and utilising visibility opportunities within PMTG, hotels will see digital marketing ROI significantly deplete, having a profound impact on bookings and revenue.

Luke Markesky, SVP, Global eCommerce, at Cendyn, said:“ With advertising costs rising faster than many budgets, hotels must continue to evaluate and evolve their digital strategies to strategically employ AI to make a real impact to gain the right visibility to drive high-value bookings. Through this report, hotels gain insights to understand the impact of increased competition, regulatory changes and evolving traveller behaviour on digital marketing performance, while navigating the opportunities of AI. Hotels that invest strategically and utilise valuable guest data can sustain growth, capture market share and emerge as leaders in a competitive, privacyconscious and increasingly AI-driven advertising environment.”

The Cendyn Hotel Digital Marketing Performance Index delivers actionable intelligence by evaluating adoption trends, cost dynamics and performance metrics across major digital hotel advertising channels. Designed to help hospitality marketers make informed decisions, the report empowers hoteliers to utilise AI in order to optimise spend, preserve visibility and capture demand in an increasingly crowded market. x

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