CPC query related to comparing two companies

[MorrisonHotel]

Can anyone help with a query I have about comparing CPC for two companies. Scenario is:

Keyword term: hotels in Bangkok

If I have two companies bidding on the same keyword term, and company A is a hotel company (e.g. Hilton) and company B is a tour operator selling Bangkok hotels, will company A have a cheaper CPC as they are a hotel?

[NickMNS]

I would say No they should be bidding at the same price. But possibly yes.

Yes, in that if the one of the advertisers has a low quality score, they will need to bid more to win the auction. But this has more to do with quality factors then with the type of business.

Here is a link to Google's explanation about ad quality.
[support.google.com...]

[buckworks]

Company A wouldn't get an automatic advantage just for being a hotel. However, if more users clicked their ads, they'd eventually gain a cost advantage from the higher clickthrough rate.

(If two ads have equal bids, AdWords will usually prefer whichever ad has the higher CTR.)

To compete, Company B could raise their bids, of course, but first they should look for ways to improve their CTR.

Savvy advertisers will

• test different ads to find wording that's more effective
  
• make skillful use of different match types
  
• make skillful use of negative keywords
  
• look for ways to tighten their targeting
  
• look for relevant long-tail queries to expand their keyword set
  

They'll also look for ways to improve conversion on their websites. Higher conversions can make higher bids more affordable.

[MorrisonHotel]

Thanks all for your input. Much appreciated.