AUSTIN, TEXAS, USA – Cendyn has reported a significant increase in hotel cost per acquisition (CPA) in 2025, as digital marketing enters a new phase shaped by regulatory tightening, higher media prices, and reduced access to user data. According to the company’s latest Hotel Digital Marketing Performance Index, CPA rose 38% year-on-year – the sharpest increase recorded in recent years.
The shift is largely driven by new compliance requirements, which have accelerated the industry’s transition toward what Cendyn describes as a “clickless world.” The implementation of the EU’s Digital Marketing Act (DMA) has forced companies to rethink how they collect and process user data, requiring explicit consent for tracking activities. Cendyn’s analysis examined Google’s compliance response, particularly Consent Mode V2, which enables hotels to continue using Google Ads and Analytics while meeting regulatory standards. However, once implemented, performance metrics weakened.
When consumers decline Consent Mode V2, website conversions often go untracked, reducing the signals that feed Google’s automated bidding algorithms. This results in less accurate campaign optimization, distorted ROAS, and an increased risk of misinformed strategic decisions. Aggregated data from the Cendyn Digital Marketing Platform also showed declining conversion rates across most channels, reflecting the broader limitations caused by reduced tracking when users withhold cookie consent.
The report further highlights the effect of new U.S. regulations targeting “junk fees.” California Senate Bill 644 and Assembly Bill 537 require hotels to display detailed tax and fee breakdowns to ensure full pricing transparency. Properties that fail to comply face rate parity challenges, damaging performance on rate-sensitive channels such as metasearch. Inaccurate or incomplete pricing reduces visibility, lowers CTR and suppresses ROI. In the U.S. market, CTR decreased from 3.18% to 2.88% as a result of listings appearing more expensive.
Christina Leme, Senior Director Global Media at Cendyn, underscored the need for hotels to adapt quickly: “Hoteliers need to take the findings from this report as a warning: non-competitive listings face reduced visibility, or exclusion from search results. But there are things hotels can do to counter these trends. Implementing robust price parity monitoring, optimizing consent management for better tracking, ensuring accurate fee and tax disclosure, investing in first-party data collection and activation – these are all great strategies for securing future bookings. In a landscape defined by constant change and increasing regulatory complexity, hotels that stay ahead of these shifts can and will thrive.”
Cendyn emphasises that hotels must now focus on price parity, technical accuracy, compliance and privacy-first marketing to protect performance. The company continues to support its hotel partners with tools designed to adjust to evolving regulations, market conditions and consumer behaviour.
The 2025 Cendyn Hotel Digital Marketing Performance Index provides actionable insights for hospitality marketers seeking to optimise spend, maintain visibility and capture demand in a competitive landscape. It is now available for download with full findings and analysis.
Tags: Christina Leme, Cendyn
