Imagine yourself navigating through the dating app world. Online Travel Agencies are matchmakers that introduce your hotel’s services to a large pool of potential clients. You pay a commission to them for each successful booking. Metasearch platforms work more like dating profile collectors. They display your hotel with other hotels, but allow the guest to choose whether or not they book directly.
Both can be used in your hotel marketing strategy. But understanding the differences between them is crucial to increasing direct bookings and decreasing commission costs.
What are OTAs? Speed-Dating Platform
Think of OTAs as speed dating. You get to meet a lot people, but everyone else does too. Expedia and Booking.com are sites that make it simple for travelers to browse and compare hotels, as well as book them quickly. While OTAs can bring in a lot of guests, it comes at a price. Each booking requires a 15%-30% commission. It’s also hard to stand out with so many hotels stacked up next to each other. Even if a guest “picks out” your hotel, OTAs still control the relationship.
Marketing Funnel Positioning: OTAs operate at the bottom end of the funnel and capture guests who are already ready to book. Bookings are subject to a high commission and have limited guest data.
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What is Metasearch? You can always count on your well-connected wingman
Metasearch platforms such as Google Hotel Ads and Tripadvisor act as the well connected wingman of the dating scene. The metasearch platforms don’t generate demand but instead introduce travellers to multiple booking options including your direct website. This allows them to select the right fit. Metasearch Engines present your rates along with OTAs to travelers who specifically search for your property. You can drive direct bookings if you display your website prices next to OTAs. This allows you to retain brand control by owning your guest relationship and remarketing it for upsells and loyalty building. As in dating, no one will notice you if they don’t know who you are. Metasearch does not create demand; it only captures it. If you don’t have a strong brand, you may miss out on bookings directly.
Marketing Funnel placement: Metasearch reaches the middle-to-bottom of the funnel. It captures shoppers who have already searched for your hotel name and is an effective tool to convert those with high intent. Metasearch will show your hotel at the top if you are actively running metasearch campaigns.
The Differences
- Cost: OTAs charge a commission for every booking. Metasearch is based on a cost-per acquisition (CPA) or pay-per click (PPC), giving you greater control over your spending.
- Brand Protection: If Metasearch is not used, OTAs will dominate results and push direct bookings to the bottom of the page. Metasearch ads help you remain visible and competitive.
- Data ownership: OTA bookings provide limited guest information. Direct bookings through Metasearch allows you to collect valuable guest data for future marketing campaigns.
- Brand Recognition: Metasearch campaigns are most effective when your hotel has a strong brand awareness.
Metasearch and OTAs can be used to create the perfect dating strategy. You want to stand out, but also build relationships that will last. Metasearch helps travelers book directly with your hotel by leveraging OTAs to cast a large net. By using both effectively, you can not only increase bookings but also improve guest relations and retain more revenue. The key to success in hotel marketing dating is making a direct connection.
