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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 (CostPerClick) models, these listings are displayed for free, with their positioning determined dynamically by search algorithms, similar to classic SEO.
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.
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.
That said, one has to ask: why are so many hotels’ margins still being eroded away by OTAs ? The growth of metasearch OTAs often outperform individual hotels in metasearch positioning and cost-per-click (CPC) performance. Some OTAs still use cached pricing.
Those broader terms make more sense for an OTA or Portal site that creates content to compare multiple properties. Also, as mentioned above, the independent hotel doesn’t have the price comparison and options that these hotel metasearch and OTAs have that fulfill searcher intent. and may not be ready to book their room just yet.
She clicks on the link to your hotel booking engine from the site, but ultimately she goes to Booking.com because it’s showing the lowest price, and she books there. Each of these touchpoints can come with costs to your hotel. Costs can be direct or indirect, fixed or variable. As you can see, things can get complicated.
But what may sound like an advantageous opportunity may not be so advantageous if you’re not keeping a close eye on the many other aspects of Tripadvisor’s search and ad ecosystem. This can be a difficult question to answer and one that must be looked at as part of a holistic hotel metasearch and OTA strategy for hotels.
Balancing direct room sales with third-party websites and online travel agents (OTA’s) is one of the challenges the hotel industry faces in 2023 and beyond. Many have become loyal to the OTA, thinking they offer better rates than on the hotel’s own brand.com website. Don’t let this happen to you.
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