LAST UPDATED: June 6, 2020, 12:20 a.m. EDT: Google’s offer of $1000 Credit for small businesses affected due to coronavirus is facing a huge backlash from travel companies. After vowing in March, to help the small and medium-sized businesses who are facing an identity crisis due to the COVID-19 pandemic. Google rolled out its help package for small businesses in the form of $1000 credit.
Why Google’s offer is Facing Backlash?
But Travel Companies are not happy with this help package. They say that “Google could have done more than this“. $1000 is nothing for travel companies.
There’s a big partnership with google and Travel companies. Google and Travel company’s profit relies on each other. This $1000 amount made travel businesses very disappointed. Google Help program was launched this week in Italy, Australia, and Taiwan where this credit of $1000 will be given. Companies need to qualify the minimum standards to avail of this package.
“To put it euphemistically, this is utterly underwhelming — Says Douglas Quinby, CEO of Arival”
Travel companies are facing huge losses due to the complete ban on tourism all around the world. They invest thousands of dollars to run google ads for travel destinations. Travel companies say that the travel business is one of the most contributing business to google’s profit and this less amount of aid was not expected.
In March, Google decided to help businesses with $800 million packages out of which $340 million for advertising credit for small businesses.
Google responded to this backlash with a short statement:
Google said the credits were meant as a “gesture of support.” The company didn’t address complaints about the size of the amount offered.
Last month, a group of travel companies wrote an open letter to Google and Facebook asking to give discounts on advertising costs till 2021, as the costs will up go up due to less demand.
Dan Yates, CEO of Pitchup said “The ad credit amount would account for less than a day’s worth of ad spending. His company spent $7,400 one day in 2019. “So, we’d have burned through $1,000 by mid-morning, It’s disappointing”