Portfolio

Boutique Manhattan Hotel: OTA Strategy Case Study

Abstract

Evision Worldwide’s experience with clients in top-tier markets like New York has revealed a significant, positive relationship between a hotel’s ranking on major OTAs and both their direct bookings and performance in paid search campaigns. On the surface, this relationship seems counter-intuitive (don’t OTAs steal business away from hotels?), but this case study demonstrates how strategically handling OTA placement can result in a boost to direct revenues. We obtained #1 placement on Expedia for a four-star hotel client in Manhattan. Almost immediately, traffic and conversions on their website spiked. Google AdWords results also rose substantially.

 

The Goal

By establishing a strategic presence on Expedia, we cultivated greater Google exposure for our client. This increased visibility proved especially valuable in the beginning, since when we started the client was struggling to rank on Google for some of the highly competitive New York City-based searches.

 

The Work

Note: Our OTA strategy for this hotel was part of a comprehensive online revenue optimization plan; in fact, as we explain below, tying OTA strategy into an overarching campaign is crucial. For more information about the web design, SEO, PPC campaigns, email marketing, multilingual marketing and mobile marketing we implemented for this client, click here.

Although hotels often view commission payments as lost revenue, and fear lost bookings to the OTAs, this is merely a marketing cost of doing business in this industry. With healthy exposure through an OTA like Expedia, savvy searchers almost always turn to Google for additional information about the hotel. By searching for you, they strengthen your online performance in Google.

OTA strategy cannot exist in isolation. Only by weaving our OTA strategy into a more comprehensive set of services designed to optimize online revenue could we transform a former competitor (Expedia) into a driver for direct bookings for our client. Here is the basic process we implemented for our client:

  • We cultivated greater exposure on OTAs like Expedia: We aimed for higher rankings, and made full use of OTA PPC programs to highlight our client’s brand. So, OTA users would see their brand and follow up with a Google search for more information.
  • We launched a strong search marketing program to ensure that our client dominated Google paid search results – thus capturing increased direct traffic.
  • We implemented website design and usability enhancements so our client became much more effective at converting traffic overall. Thus, those prospects who ended up on their website were much more likely to book directly.
  • Some revenue management elements also played a role. For example, we had to ensure our client was offering rate parity along with reasonable incentives to book directly.

 

The Results

The measurable results clearly indicate success.  The hotel saw the following changes during the immediate 3-month period following the #1 Expedia placement, as compared with the same 3-month period the previous year:

  • 22% increase in AdWords impressions for brand name keywords
  • 7% increase in AdWords click-through rate (CTR)
  • 16% increase in overall online conversion rate

 

 

Figure 1. In the 8 months following #1 placement on Expedia, CTR for the hotel’s brand name keywords in AdWords increased by 35%.

Figure 2. In the 8 months following #1 placement on Expedia, online revenue from the hotel booking engine increased 16%.