Why didn't I see this before? I thought OTA undercutting was just a… | Christine Malfair | 16 comments
💸 OTA undercutting is not only a pricing issue but also a marketing problem, with SHR research indicating a 47% increase in cost-per-click and a 36% higher expense than hotels with a direct rate advantage. The competition for branded search terms intensifies when OTAs bid higher in paid ads due to lower rates. The consequences include higher ad costs, lower conversion rates, and reduced marketing budgets. Despite some hoteliers believing they are not OTA-dependent, underlying dependencies may still affect their marketing power.
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