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Prakash Singh | AFP | fake pictures
New German travel companies have asked Google to share the burden they are currently experiencing, according to a letter seen by CNBC.
Start-ups pay Google millions of ad fees each year to appear in Google’s search results, in advertisements, and on Google’s hotel search engine platform.
But like others in the travel industry, the coronavirus has hit them hard; they have to issue refunds to travelers and new bookings have slowed down significantly.
In a letter to Google’s chief business officer Philipp Schindler, the leaders of the new company ask Google to wait for the advertising money owed to it. Specifically, companies want Google to pause the execution of payments from companies that have received taxpayer-funded government financial aid.
They also want Google to offer a consistent and flexible way to restructure and postpone payment terms for advertising services and other fees incurred in the first quarter.
“Unless Google exercises greater flexibility, many of its advertising partners will be forced to use government loans to pay off its debts,” the letter read. “Much-needed funds will flow into Google’s coffers behind the backs of taxpayers in Germany and around the world.”
The letter was written by the German Start-ups Association (The Bundesverband Deutsche Start-ups) and signed by eight new travel companies, including the activity booking platform GetYourGuide and the hotel search engine Trivago.
Among them, the companies reserved more than $ 80 million in Google ads for the first quarter.
“With more than $ 41 billion in revenue in the first quarter of 2020, Google is the leading player in the global digital economy,” says the letter. “As a consortium of companies that contributes to the health and diversity of that economy, we ask Google to demonstrate the leadership and solidarity necessary to navigate this difficult time.”
The letter was sent to Schindler on Wednesday and has not yet responded.
It is unclear at this stage whether other sectors have sent similar letters at this stage.
A Google spokesperson said the company’s teams are working “day and night” to support partners who are going through difficult times. “We are committed to doing even more to help our users and customers overcome this crisis, and we are in continuous communication with our partners, including the travel industry,” they said.
Google has created a $ 800 million crisis aid package that small businesses can access. Includes $ 340 million in advertising credits. However, CNBC understands that none of the new German travel companies has been able to access any of those credits.
