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Mastering the Art of OTA Visibility: The Key to Unlocking True Hotel Profitability

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  • 8 October 2024
  • 4 minute read
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This article was written by Hospitality Technology. Click here to read the original article

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Adjusting room rates isn’t enough anymore. If you think revenue management is solely about pricing, you’re missing the bigger picture and leaving money on the table. 

True profitability comes from optimizing every factor that drives revenue for a hotel. One of the most powerful, yet often overlooked, is a hotel’s visibility on Online Travel Agencies (OTAs). Over 73% of bookings are made through OTAs like Booking.com or Expedia, but a staggering 75% of all clicks go to the top 15 listings on the first page. If your hotel isn’t among them, you’re essentially invisible. And being invisible isn’t just a missed opportunity, it’s draining your revenue.

There’s a common misconception that to achieve higher rankings, hotels need to lower their prices. But in reality, hotels that master ranking optimization can actually raise their rates while still maintaining strong visibility in OTA search results. 

But here’s the catch: mastering OTA visibility isn’t a one-time, tick box exercise. It’s a complex game with shifting rules, and understanding how to play it can feel overwhelming. Achieving high visibility is a strategic, ongoing process that demands a deep understanding of how OTAs rank and recommend properties.

OTAs don’t just care about pricing. Their algorithms take multiple factors into account — like guest reviews and ratings, the quality and accuracy of your content, variety of amenities, and the completeness of your listing. But it doesn’t stop there. Maintaining visibility requires constant monitoring and real-time adjustments based on evolving guest preferences, market conditions, and OTA algorithm changes. 

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Guest preferences aren’t static — they shift with trends, seasons, and global events. What travelers valued last year might not be what they’re looking for today. OTAs favor listings that align with current demand, whether it’s eco-friendly features or remote work amenities, perhaps depending on the time of year and the feeder markets that apply. If your property isn’t keeping pace with these evolving preferences, you’re missing out on bookings. Market conditions are just as fluid. Local events, economic shifts, and even international factors can influence travel patterns and demand. 

Then, there’s the ever-changing landscape of OTA algorithms. These platforms frequently update their ranking criteria to enhance the user experience and try to draw more traffic than their competitors. A strategy that worked last quarter might not deliver the same results today. For example, an OTA might start giving priority to properties with flexible cancellation policies or those that emphasize eco measures.

With this in mind, actively managing your OTA visibility should be a continuous, dynamic part of your overall revenue strategy.

Think of your OTA listing as a living, breathing asset. This means regularly refining your content — not with superficial tweaks, but with strategic updates that align with emerging market demand. Instead of just updating promotions, dive into what your key customer segments are looking for right now. Is there a surge in demand for wellness experiences or sustainable amenities? Are travelers in your region prioritizing flexible booking policies or remote work setups? Your listing should reflect these shifts, highlighting what will resonate most with current traveler behavior.

Keeping a close watch on competitors is important but don’t just focus on what they’re offering. Look at the timing and patterns behind their strategies. Are they adjusting prices or launching campaigns during certain events or seasons? Do they shift their messaging when market conditions change? Use this intelligence to anticipate trends and proactively position your property, rather than reacting too late to what others are doing.

Data is your biggest ally in this process. It’s not enough to wait until bookings dip before taking action. Hoteliers should build a habit of regularly analyzing OTA performance metrics — click-through rates, conversion rates, and booking lead times — to identify underperforming areas. If your listing is attracting views but isn’t converting, that’s your signal to dig deeper.

But tracking current performance is only part of the equation. You need to anticipate how OTA algorithms will shift before these changes impact your rankings, because they change so frequently. The OTAs are constantly using search data to work out what will sell best, rewarding the listings that match these trends the closest. Predicting shifts in OTA algorithms before they even happen is where technology has the biggest role to play, analyzing OTA algorithm updates, competitor performance, and traveler behavior for real-time insights into what’s driving your ranking. 

With access to this level of detail, you can not only respond to changes but also proactively optimize your listings, ensuring you stay visible in even the most competitive search results.

 

About the Author

Bart-Jan Leyts is the Founder and CEO of Otamiser, an OTA ranking management platform for the hospitality industry. With a Master’s in Finance from Ghent University, he launched Otamiser in 2022 at the age of 22. His mission is to revolutionize revenue management through excellence in ranking optimization. Bart-Jan aims to elevate the state of revenue management by breaking the status quo in the industry, leveraging his deep understanding of pricing and market dynamics along with a strong entrepreneurial spirit.

Please click here to access the full original article.

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