The Digital Markets Act (DMA) is a European Union law that came into force in November 2022, although it was implemented in mid 23rd. in theory, it seeks to make the internet a fairer place. It is designed to limit the power of large digital platforms (also called gatekeepers) such as Google, Meta, Microsoft and Booking, among others, and, in theory, ensure that all companies, large and small, have the same opportunities to reach users.
Google, is especially important because it dominates the search engine market in Europe, with a share of over 90% (source: Statista). In countries such as Spain, this figure reaches 95.73% (source: Similarweb). This means thatany change in how Google displays results has a direct and significant impact on the visibility of tourism businesses online.
In the travel industry, recent adjustments to search results have benefited some companies (the large comparison platforms and travel aggregators), but have hurt others (direct suppliers such as hotels and airlines).
These modifications reached a key moment last November 2024, when Google implemented a pilot test in three European countries: Germany, Belgium and Estonia.
Impact of the WFD on the tourism sector
With the entry into force of the DMA, Google has made more than 20 changes to its search engine in Europe. These modifications include:
- Increased visibility for comparison sites in sectors such as flights, hotels and products.
- Simplified results, such as the introduction of blue links for hotel searches in some European markets.
- Options for users to choose between results that lead to comparison sites or directly to provider pages (airlines, hotels, etc.).
The November 2024 blue links experiment
In November 2024, Google launched a pilot test in Germany, Belgium, and Estonia to simplify hotel search results. This experiment removes visual elements such as maps and hotel highlights that used to appear below maps in the results. Instead, only blue text links are shown that lead directly to hotel, airline or other provider pages.
Why this change?
The main objective of this test is to assess whether a more straightforward design can address concerns of unfair competition under the DMA. Google’s maps, widgets, and rich results have been criticized for favoring its services, making it difficult for other companies, such as price comparators or independent sites, to compete fairly.
Mixed industry reactions
The winners: Comparison sites and large platforms have received this test positively, believing that they now have a more level playing field against Google’s own tools.
The losers: Small hotels, airlines and retailers are worried about losing even more visibility. The lack of eye-catching visual elements makes it harder to stand out against big players like Booking or Expedia, which already have a strong presence in the market.
What solutions can we propose?
To minimize the negative impact on the tourism sector, it is essential that both regulators and affected companies take proactive measures. Here are some proposals:
1. Strategies for direct suppliers
- SEO optimization: How to stand out in search: For airlines, hotels, and small operators, SEO optimization is key to regaining visibility. This includes focusing on specific, local keywords (such as “boutique hotels in Montmartre”), creating valuable content such as guides or recommendations, ensuring the website is fast, secure, and mobile-friendly, optimizing Google My Business tabs, using structured data, establishing partnerships for quality links and encouraging reviews on key platforms such as Google and TripAdvisor.
- Increased collaboration with OTAs: Despite competition, partnering with large platforms can be a way to regain visibility, at the cost of losing margin…
Innovation in search formats
- Leverage new formats: Google has introduced options for comparators and suppliers to display more details, such as prices and images. Companies can optimize their content to take advantage of these formats.
- Reviews and ratings: Boosting customer reviews increases the likelihood of organic clicks, even on simpler designs such as blue links.
3. More balanced regulation
- Continuous monitoring: The European Commission must assess whether the changes comply with the objectives of the DMA without generating unexpected disadvantages for smaller players. I’m afraid of… indeed, although the EU intends to balance the scales, there seems to be a disconnect between the real needs of small businesses and the measures implemented. Many small operators prefer to keep tools such as Google Maps, as they facilitate direct connection with consumers.
The EU should consider that not all solutions that restrict large players automatically benefit small players. In some cases, such as the current one, these regulations could further consolidate the power of large intermediaries.
- Supporting small businesses: Providing resources and training to enable small tour operators to better adapt to the new digital environment.
The entry into force of the DMA and recent tests such as “blue links” reflect a relevant change in how technology platforms interact with regulated sectors.
While these measures seek to foster competition, they pose significant challenges for small businesses, which must find new ways to adapt to an increasingly competitive environment.
Coupled with the effects of DMA on search results, let’s not forget that implementing emerging tools, such as Search Generative Experience (SGE), could further influence how users interact with search results. This reinforces the importance of tourism companies investing in solid digital strategies and diversifying their efforts to stay relevant.
Do you think these changes will help level the playing field or will they make competition even more difficult? Do you think Europe is hurting smaller operators with this regulation?
Leave me your comments and share your ideas! I’d love to read you.
Have a good week!
