In a competitive hospitality market, it’s natural to want to steal a little attention, especially when there’s a new hotel down the street hogging the spotlight. Maybe they just launched. Maybe they refreshed their brand. Maybe they’re just plain annoying. I won’t judge.

Whatever the case, they’re popping up in search results, and you’re thinking: Should I insert my hotel into that conversation?

Bidding on competitor keywords in Google Ads might seem like a clever move. If someone’s already looking for a hotel, why not give them a reason to pick yours instead?

But in practice? It’s usually more headache than high return.

Before you throw budget at someone else’s name, let’s break down why bidding on competitor brand names rarely works, and where your money works a lot harder.

TL;DR

• You’ll enter a bidding war (and pay the price).
• Google’s algorithm won’t favor you (because, well, you’re not them).
• People searching for a hotel by name already have strong interest or familiarity, making it harder to divert them.
• You risk retaliation (hello, budget black hole).
• There are way better places to invest your money (non-brand targeting, SEO, brand defense, retargeting).

Spoiler alert: It’s usually a waste of your budget. Don’t believe me yet? Stay with me.

Why Bidding on Competitor Brand Keywords Leads to Higher Costs

Let’s be blunt: your competitors will defend their name like it’s their last slice of birthday cake. They’ve likely built strong authority over time and will outbid you to stay on top of search results.

If you start bidding on competitor’s brand names, they could retaliate by targeting yours. Which means higher costs and lower return for both of you. (Boooo, now nobody wins.)

You’ll end up paying more for a worse position in search results. Not exactly the ROI you had in mind, unless lighting money on fire was the plan.

Low Quality Score & CPC Issues with Competitor Brand Bidding

Google’s algorithm isn’t on your side. When someone searches “Hotel Sunshine,” Google assumes they want Hotel Sunshine. Your website? Not Hotel Sunshine. So Google scores you lower, hikes your cost-per-click (CPC), and makes it harder for your ad to appear.

Even if it does show up, that click? Likely to bounce fast when they realize they landed somewhere unexpected. Bad news for your click-through rate (CTR), even worse for your return on ad spend (ROAS).

And here’s the kicker: Google rewards ad relevance. If the keyword isn’t in your ad copy and it’s not on your landing page (because what hotel in their right mind is name dropping their competitor?), you’re starting with a disadvantage. You can’t legally use a competitor’s name in your ad headlines, and your landing page probably won’t mention them either. That means your Quality Score drops, and your CPC rises, often significantly higher than what your competitor is paying to show up for their own name.

Competitor Brand Traffic Rarely Converts

Loyal customers are hard to sway, so don’t be a “pick me.” Put yourself in their shoes. If you’re Googling a hotel by name, you’re probably already sold. Maybe you stayed there before. Maybe you saw an Instagram Reel and saved it. Either way, you’re not looking for suggestions, you’re likely looking to book.

Trying to intercept with a “pick me, choose me, love me” pitch rarely works. Unless you’re Meredith Grey convincing someone to leave their partner with a dramatic monologue, you’re probably just paying for a click that won’t convert.

Better Alternatives to Bidding on Competitor Keywords: What You Should Be Doing?

Non-Brand & Prospecting Campaigns

Let’s define it: “non-brand” means keywords not tied to your hotel’s name. Think: “oceanfront hotels in Arizona” (George Strait? Anyone? Moving swiftly on), then you want to be sure that you’re positioned to show up for those terms.

This is where travelers are still exploring. They haven’t picked a hotel, they’re still looking for options. That’s your window.

Position your property around what makes it different:

• A luxury oceanfront hotel? Be the luxury oceanfront hotel.
• A boutique pet-friendly stay? Own that narrative.
• A budget-friendly option in a prime location? Lead with it.

Meet guests while they’re still browsing. That’s how you move from consideration to conversion, and win new business.

Say It With Me “Protect. The. Brand.” Why Bidding on Your Hotel Name Matters

Your brand name is one of your most valuable assets. People searching it are already warm leads. So if you’re not showing up at the top of Google for your own name, you’re practically handing bookings to OTAs (who will bid on it if you don’t). Don’t leave that door cracked, or they will kick it wide open.

Your brand campaign should be the foundation of your paid search strategy. Defend it like your revenue depends on it, because it does.

Retargeting = ROI

People who’ve already visited your site or clicked your ad are way more likely to convert. Retargeting keeps your property top of mind while they continue their search.

They’ve got a few tabs open. They’re comparing you, your competitor, and probably three other hotels in the same comp set. This is your chance to slide back into view with a compelling reminder, maybe it’s an offer, maybe it’s a killer photo of your rooftop pool, and nudge them back toward booking.

This strategy works especially well on the Display Network, where visuals and timing do the heavy lifting. You’re not stealing attention, you’re reminding them why they clicked in the first place.

Don’t Sleep on SEO

I get it, SEO isn’t as flashy as paid search. It doesn’t give you instant results, and it’s not always clear what’s working. But when done right? It pays off in a big way.

Think of SEO as the long game. While your paid ads bring in quick wins, your organic rankings are building authority and visibility that don’t cost you every time someone clicks.

If you’re creating high-quality, keyword-rich landing pages, updating your content regularly, and keeping your technical site health in check, you’re setting yourself up for long-term success, especially for those non-brand keywords like “boutique hotel in [cool destination]” or “pet-friendly hotel in [city].”

Bonus: Good SEO also improves your Quality Score in Google Ads. So yes, it literally helps your paid media work harder.

In short: SEO is like compound interest for your website. Start now, thank yourself later.

What to Do When Competitors Bid on Your Brand Name

Put your fist down. Step away from the keyboard. Inhale……exhale.

Yes, it’s annoying. Watching your competitor show up when someone searches your name feels like digital sabotage. But launching a revenge campaign? Usually not the smartest play, though thrilling! 

Your site is already the most relevant result for your brand name. As long as you’re running a solid brand campaign, Google’s going to reward you with higher placement and lower costs. Let your quality score (and your cool head) do the talking.

Instead of wasting budget trying to out-petty your competition, double down on what makes you the obvious choice. Stay focused. Stay visible. Stay above the noise.

When (and How) It “Could” Work – Emphasis on “Could”

If you insist on bidding on a competitor’s brand name, there’s one scenario where it could actually be smart: RLSA (Remarketing Lists for Search Ads).

Let’s say a traveler has already visited your site. They know your name. They’re doing one last check on the competition before booking. They search your competitor, and you show up with a bold, “Here’s why we’re better” ad.

That’s not spammy. That’s strategic.

This is your moment.

If you insist on targeting a competitor’s brand name, do it here, when the user has high intent and already knows who you are. You’re not just throwing your hat in the ring. You’re stepping into a very strategic, very specific moment of decision making.

Take monday.com, for example, a project management tool bidding on their rival, Asana. When you search for Asana, Monday doesn’t tiptoe around it, they come out swinging with: “monday.com is So Much Better”

Talk about a mic drop.

If you’re going to go there, go there. Be bold, be direct, and clearly state why you’re the better option.

That said, this is still a niche play. It only makes sense when:

• You’ve already maxed out brand efforts.
• You have extra budget to test.
• You’ve clearly defined your differentiator and can lead with it via Non Brand
• You’re targeting RLSA audiences, not just spraying competitor keywords broadly.

In short: be strategic, be selective, and make it count.

Final Thoughts on Competitor Keyword Bidding: Is It Worth It for Hotels?

Sure, bidding on competitor keywords sounds like a savvy strategy, bold, aggressive, maybe even a little fun. But in most cases? It’s a fast track to wasted spend, inflated CPCs, and underwhelming results.

The smarter play? Invest in what actually works:

• Show up for travelers before they’ve made a decision.
• Own your brand terms like your business depends on it (because it does).
• Build long term value with strong SEO and smart retargeting.

That’s how you win bookings and protect your bottom line.

So skip the drama. Don’t fight for scraps in someone else’s search results. Stay in your lane, and make it impossible to ignore.