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The hidden cost of rate disparity: OTAs undercutting hotels responsible for 50% rise in Cost Per Click (CPC)

Hotel Speak

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.

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Impact of New DMA legislation: Future of Google + Hotels in Europe

Hotel Speak

The DMA currently identifies 24 core platform services as Gatekeepers, with Google a key player, alongside online travel agency (OTA), Booking.com, designated in May 2024. Unlike CPC (Cost Per Click) models, these listings are displayed for free, with their positioning determined dynamically by search algorithms, similar to classic SEO.

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How secondary OTAs are disrupting hotel rate strategy

Hospitality Today

Key takeaways Secondary OTAs undercut rates: Small, non-major OTAs often list hotel rooms below official direct or OTA rates, leading to widespread rate disparities. OTA member rates undermine parity: Programs like Expedia’s “One Key” offer member-exclusive rates that may undercut a hotel’s best available rate.

OTA
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Google hotel ads’ sunsets commission-based bidding, now what?

gcommerce

On February 20th, Google officially sunset its commission-based bidding strategy for Google Hotel Ads, leaving properties across the globe faced with the difficult decision of whether or not to fund their own Google Hotel Ads program or go dark and let the OTAs gobble up revenue share. What if there were a better option?

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Hotels under pressure to respond as OTA competition for guests lead gen explodes — SHR Group’s Hotel Industry Trends Report 2024

Hotel Speak

The battle for direct bookings has entered a new phase as online travel agents (OTAs) ramp up efforts to establish ownership of hotel guests and their booking journeys, a new report from hospitality technology specialist SHR Group reveals. In fact, the extra investment driving this change is making itself felt in other ways too. from $0.16

OTA
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SHR Finds Hotels Undercut by OTAs Pay 50% More for PPC Leads

Hospitality Tech

Even offering rate parity keeping rates on direct booking sites and OTAs the same still increases cost per click significantly compared with hotels maintaining the lowest rate on their own site.

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The Most Profitable Marketing Channels for Hotels

Travelboom Marketing

We’ve detailed the most profitable marketing channels for hotels to help you reduce costs, improve performance and increase your bottom line. Profitable Marketing Channels for Hotels CPC Marketing for Hotels Cost-per-click advertising can attract and retain customers , as well as introduce your brand to a new audience.