About this Episode
In this three episode series with Jean Francois Mourier, Founder and CEO of RevPAR Guru, you will learn about three important factors that can help you optimize conversions online: page positing on OTAs, content and reviews. This first episode about page positioning explores how hoteliers can optimize their conversions online using OTAs and reveals that:
- OTAs should be seen as “Googles” for hotels because travel shoppers use them like search engines
- Lowering prices to get to the top of the first page is not good for RevPAR
- Hotels listed at the top of the second page can get sales at higher prices
Click for Video Details
- Episode #26
- Posted on March 8, 2010
- Duration: 11:10
- Captions:
1:15 3 episodes: how hotels can optimize conversions by differentiating themselves online
1:25 3 factors: page positioning on OTAs, content, reviews
1:40 today’s topic: how hoteliers can optimize their conversions online using OTAs
2:00 travel shoppers do extensive research on OTAs
2:20 how can hoteliers get to the top page position on OTAs?
2:40 is being number one most profitable in terms of bookings?
2:50 simple fact: on the internet, if you’re visible, you sell
3:10 see OTAs as “Googles” for hotels - consumers use them like Google
3:30 page position on OTAs will affect sales
3:50 typically, if you’re on the first or second page you will sell
4:00 20% of sales happen via the picks – Expedia Picks
4:20 80% of sales are from consumers looking for best bang for their buck
4:45 hotels on top of first page have low prices - not great for revpar
5:00 consumers skip bottom of first page and look at top of second page
5:20 can get a lot of sales at higher prices on top of second page
5:50 get into good relationships with OTAs to maximize positioning
6:20 figure out how many people filter by star rating
7:40 page positioning will differ depending on the seasons
8:00 what can hoteliers to do optimize page positioning on OTAs?
8:20 tools available for revenue managers to help optimize positioning
8:45 lowering prices to get the first position is not the best strategy
9:10 pricing should depend on season, inventory and daily demand
10:30 strategic alignment of OTA positioning is one way to optimize conversions online - Embed Link:
6 Comments
As an OTA management firm, we constantly experience the huge impact visibility on OTAs can have on hotel occupancy.
Jean mentions that the hotels at the top of the page would have a low price Would this not reduce the OTA revenues since they charge a percentage on the net rates? How will this affect the page ranking of the hotel?
Regards,
Samarth Nautiyal
Marketing Director
Booking Boosters
Kamlesh, if I understand your question you are asking if OTAs will position you better if you give more inventory.
the answer is quite possibly. Just to clarify inventory will only have an impact on the “picks” for expedia for instance, but not all the time. My understanding is that local account managers still have the ability to change your positioning on the picks but not on the price classification,obviously.
It is also my understanding that some chains signed agreements for better positioning and will be on top by default, but after that and after the local account managers there is an algorithm.
There is an algorithm for instance for expedia (most of the time the biggest booker) that tries to enhance revenues for them. So when you have a big inventory it should favor your positioning since you have more earning potential for them. Another factor that weighs in big is rate parity which has become a huge factor now for most webistes and mainly Orbitz. Booking.com gives you the possibility to get a better ranking by giving them a higher commission on any given day (Check ranking on site on your extranet).
Of course a good relationship with your account manager goes a long way.
I hope that answers your question.
very much agreed to what you have said. but is price and star rating the only variables and criteria for havin a bettrer page positioning (if the customer hasn’t chosen to narrow down the search further). what about inventory ? does it plays any role in page positions ??
I would like to receive more information about strategies to maximize revenue through OTAS.
Please visit http://www.revparguru.com where you will find more information about strategies to maximize revenue through OTAS.
Kind regards
Bruno
I couldnt agree more.
Katsos Theodoros
Direcotr of Sales
Electra Hotels and Resorts
http://www.electrahotels.gr
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