PLACE YOUR HOTEL ON THE FIRST PAGE OF OTAs’ SEARCH RESULTS

PLACE YOUR HOTEL ON THE FIRST PAGE OF OTAs’ SEARCH RESULTS

?The OTAs (Online Travel Agencies) are the number one distribution channel for the vast majority of the hotels on this planet with the own website a (hopefully not so) distant number two for the non-contracted part of the business.

It is a huge task to manage multiple OTA platforms simultaneously and optimally. It is therefore vital to dedicate adequate time and other resources to it.

First, it is important to understand that OTAs also practice Revenue Management on their sites. That means that hotels that generate a higher income for them will get preferred treatment and a better listing on their site. So, what are the main factors that influence my ranking?

?1.??????Guest reviews

It is surprising to see how many hotels still do not answer the reviews that their guests leave on the main websites like their main producing OTAs, TripAdvisor and Google. In the case of OTAs every time a hotel does not answer the review within 24 hours their ranking score is negatively impacted. An added benefit of reading guest reviews, a part from communicating with your guests, is that it offers a tremendous free of charge advice how to improve your product and services.

2.??????Rate and Rate Plan Parity

Rate parity must be maintained every day of the year. From the hotel’s perspective that means to make sure no other distribution channel (in particular OTAs) offers lower rates. From the OTA’s perspective however it means that their rates are at least as high/low as can be booked on any other channel, mainly the website of the hotel and other OTAs. This includes availability of the same rate plans and conditions. If you offer for example without breakfast on one channel the same has to be offered on all the channels or it will be registered as a disparity and therefor negatively impact your ranking. All of this every day of the year. Quite a job to be done!

3.??????Promotions

Make use of the various promotional tools that most OTAs offer. However, do not just sign up. Manage it by applying any promotion strictly only when it makes sense. During periods of low demand to boost bookings for example. Another factor to consider is that you apply all promotions equally on all channels if possible. At the very least however on your own website. This is a small selection of possible promotions:

a.??????Genius

b.??????Preferred Partner Program

c.??????Free room nights (pay 2 get 3)

d.??????Early booker and last-minute discounts

4.???????Conversion

The ranking algorithm for Booking.com for example is optimized for conversion. That means it weighs it very strongly. What is conversion and how is it measured?

?Conversion is the ratio between:

·????????The number of times guests saw your property in search results

·????????The number of times guests viewed your property page

·????????The number of times guests booked your property

·????????The number of times your property shows in search results compared to the total number of properties in your city

Here are a few suggestions for engaging potential guests and increasing your conversion rate.

Be attractive

This not only helps people find the property that best matches their needs, it helps you set the right expectations if they book your place. Check your property score on the extranet and make sure it is at 100%

Be competitive

Value for money is important to travelers, so your prices play a vital role in their decision-making while they’re searching and comparing properties.

·????????Keep your rates competitive. Every day and for at least 60 days ahead. Review your rates for 365 days ahead at least once a month.

·????????Offer different rate plans. (With or without breakfast etc.)

·????????Be as flexible as possible in your policies and restrictions (length of stay, cancellation)

·????????Use promotions as discussed in point 3

OTA platforms also offer information like Content Score, Visibility Booster, Ranking Dashboard and others on their extranet.

5.??????Availability

Adding and keeping availability is the number one way to be seen by potential guests. Load your available rooms or units 12 months in advance and offer flexibility with restrictions. Much rather than closing inventory increase the price. ?And most importantly have competitive prices at all times every day.

6.??????Pay the bills

Pay your commission invoice in time. Failing to do so will get your hotel closed out automatically and that in itself decreases your positioning score. In addition to well, being punished for not paying the bill.

7.??????Content score

In order to market your property effectively, you need to grab the attention of bookers. You can do this by making sure your property page has attractive, high-resolution photos, a complete description of your property and an accurate list of facilities. Make sure your content score on any of the OTAs is at 100%

8.??????Visibility Booster Commissions

None of us like to pay. In particular commissions as they represent a cost that goes to a third-party provider to invest into their brand and not an investment into our own brand and guest data. However, the market domination of the OTAs can make these expenses an option. Sometimes. Under certain circumstances hotels can/should opt into the numerous programs that OTAs offer to “buy” a better listing. Careful with that though. It can cost up to 5% more and the question is always if it is not better to discount the rate by that much or invest it into our own online marketing instead of paying that additional money to an OTA.

CONCLUSION

From the above 2 main conclusions can be drawn. Number one: Assure competitive pricing. The only way this can be done in nowadays dynamic hotel market is by dynamically adjusting the hotel’s rates. Every day. For this dedicated technology and human resources are vital. Number two: The online distribution contributes a big part in most hotels’ room revenue. It is therefore necessary to monitor and manage these (mainly OTAs and own website) regularly. Every day ideally.?