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CONVERSION

Conversion is a key factor in driving hotel bookings. As your bookings increase, so does your hotel's visibility and ranking on OTAs, helping you capture a fair share of the market. The average OTA conversion rate typically ranges between 0.8% and 4%, though this can vary based on geographic location.

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RATE PARITY

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Maintaining consistent pricing and inventory across all channels is not only ethical but also essential for fair competition. Parity ensures that all distribution channels have an equal opportunity to generate bookings, leading to balanced demand across platforms. Most OTA algorithms monitor rate parity to determine property rankings. The more disparities a hotel has, the lower its visibility and bookings will be on these platforms.

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VISIBILITY AND CONTENT SCORE

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Hotels that are accurately positioned across online channels are booked more frequently than their competitors. Keeping information up-to-date—such as photos, content, amenities, and guest reviews—boosts your hotel's ranking on OTAs. A higher ranking leads to improved visibility, better positioning, and ultimately, increased bookings and revenue

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RATE STRATEGY

Hotel rates should align with the property's amenities, location, and any contractual agreements. Competitive pricing is key to maintaining a strong presence in OTA search results. OTAs also engage in rate shopping, and if a rate is deemed unreasonable for the property type or date range, the hotel’s ranking will drop. To stay competitive, hotels can leverage tools like Rev+ by Expedia to monitor and adjust rates effectively.

PROMOTIONS/PACKAGES

Running promotions on OTAs is essential for maintaining hotel visibility, especially during periods of low demand when filling rooms becomes a top priority. Leveraging special offers, such as "Deals of the Day" or flight and hotel packages, can significantly boost exposure and help drive bookings during slower times.

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COMPETITOR SET

Taking the time to analyze your competition is essential for crafting a successful strategy. Understanding what they offer helps you position your hotel more effectively. What rates and promotions are they running? Are they offering mobile-only deals, point-of-sale discounts, or nightly promotions? Knowing these details will help you stay competitive and attract more bookings.

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MARGIN AGREEMENTS

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Margin agreements with wholesalers are increasingly common, with many now able to connect directly to channel managers. However, many hotels still offer both static and dynamic pricing. How can you control rate leakage and negotiate optimal commission levels? Addressing these key questions is crucial for maintaining proper distribution and rate parity across all channels.

ANALYTICAL TOOLS

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Tracking your hotel's performance with analytical tools is absolutely crucial. These tools provide insights into booking pace, geographical distribution, cancellation trends, visibility ratios, and much more. By leveraging this data, hotels can identify the right tactical offers and develop long-term strategies to stay ahead of the competition.

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