That benefit, often called the billboard effect, involves a boost in reservations through the hotel’s own distribution channels (including its website), due to the hotel’s being listed on the OTA website. This report provides a quantitative assessment of the incremental reservations through non-OTA distribution channels received as a result of being listed on an OTA site. To quantify the billboard effect, this pseudo experiment examined the effects for certain properties operated by a well-known hotel management companies that are listed on Expedia.com. The study found that when the hotels were listed on Expedia, they saw an increase in reservations from their own distribution channels (that is, not through Expedia). The theory behind this phenomenon is that the would-be guest gains information about the hotel from its OTA listing, but then books the room through a channel controlled by the hotel or its chain family. The study estimates the incremental reservations from listing on Expedia (not including the reservations actually made at Expedia) at 7.5 to 26 percent for the four properties in this study. Now ask yourself how easy is your website to book? If you were on a OTA and then searched your site would you book that same room on your site? How old and out dated is your site compared to your competitor of Expedia?
If you own or manage a Small Superior Lodging and you are not on ATO’s because the commission is to high you might want to test this theory and blog or e-mail me back. I have found personally this is true in the past two weeks with a Florida Resort.
As always I hope this helped your business become better.
Oigidecht Hotels and Resorts