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Houston TX, January 15, 2025 Hotels that allow Online Travel Agents (OTAs) to undercut their rates pay nearly 50% more for PPC leads, new research has revealed. The increased cost is driven by competition. OTAs increase their bids on branded searches when they know they can offer travelers the best price.
Websites such as Trivago and Skyscanner are experiencing rapid growth (68% and 42% year-on-year respectively), and a study by Momondo forecasts the comparison sites market to grow more than 40% by 2017. Use travel comparison sites Travel comparison sites have been instrumental in empowering consumers, and usage in the UK is high.
Without it, your business is essentially forfeiting the ability to boost bookings, revenue and profit, offer competitive rates and promotions, and forecast effectively. That said, one has to ask: why are so many hotels’ margins still being eroded away by OTAs ? Some OTAs still use cached pricing.
Online Travel Agent sites (OTAs) compete heavily on these channels to steal market share. With the current economic climate, we have seen significant increases in the average cost-per-click (CPC) on hotel metasearch channels. OTAs are pushing hard to regain their footing. decrease YoY.
When a lower demand is forecast, deploying special promotions encourages bookings and evens out revenue. Segmenting the hotel’s advertising audiences into groups with similar characteristics creates opportunities for tailored messaging to maximize your cost-per-click ad dollars —and your profits.
This means using a mix of online and offline channels, like Online Travel Agents (OTAs), meta-search engines, direct bookings, reviews, Global Distribution Systems (GDS), and more. Here are some key points: Reach More Guests: Channels like OTAs and booking sites help hotels attract a bigger audience.
What is concerning here is SLS South Beach may have just paid a very high costperclick to have someone visit their profile, only to be presented with rates from three different OTAs. If not, you will absolutely be spending your marketing dollars to drive potential direct bookings to an OTA.
Common operational data metrics include: Occupancy history and forecast Capacity Housekeeping efficiency Maintenance response time Food and beverage cost percentage Out-of-service rooms Marketing data Your marketing data captures how well your channels are performing and reports on visitor data to help guide future marketing campaigns.
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