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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

Gatekeepers are large digital platforms that provide core services, such as search engines. For example, gatekeepers must allow their business users to promote their services and complete contracts with customers outside of the gatekeepers platform. They are designated gatekeepers if they meet certain criteria outlined by the DMA.

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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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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.

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How to increase holiday bookings

SiteMinder

Holiday bookings refer to the reservations made by individuals or groups for accommodation, travel, and other related services during their vacation period. The report flagged the hotel industry as an example of a sector working to leverage technology to help provide a more premium service. What are holiday bookings?

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13 ways to attract more direct bookings for your hotel

Cloudbeds

Direct bookings are reservations guests confirm directly with a property without using an online travel agency (OTA) or 3rd party intermediary. Direct bookings are beneficial because they connect lodging businesses directly with potential customers and increase hotel revenue through money saved from OTA commissions.

OTA
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What is hotel metasearch marketing? The complete guide for lodging properties

Cloudbeds

And yet, many hotels overlook metasearch in their digital marketing strategy , missing out on opportunities to reach a broader segment of travelers, compete for business with online travel agencies (OTAs), and drive direct bookings. Much like with OTAs, the search results then display a list of available hotels and rates in the destination.