Case Study: Travelodge achieves 10% reduction in Cost of Sale with Kenshoo Keyword Bidding

Travelodge Uses Keyword Bidding to Drive Cost of Sale Down 10%

Travelodge, the UK’s largest independent value hotel brand with over 500 hotels and 37,000 rooms, wanted to boost incremental bookings from competitive generic search terms. Although its team had met overall Cost of Sale targets using Kenshoo Portfolio Optimization for nearly four years, Travelodge asked Spark Foundry and Kenshoo to increase competitiveness and performance specifically around individual generic keywords.

Travelodge became the first Kenshoo client to move all generic keywords on Google and Bing from portfolio bidding to Kenshoo’s Bid-to-Value Keyword Bidding while keeping branding on KPO, creating a hybrid bidding strategy that delivered greater visibility and control. Within two months the change drove a 4% rise in generic bookings, 12.5% revenue growth, an 8% reduction in cost-per-click and a 10% reduction in cost-of-sale — and the switch took less than a day to implement.

Travelodge