OTAs have disrupted the industry in more ways than one. In this TV show Brian Reeves discusses how OTAs drive conversion rates.
OTA's approach to conversion
I guess the cornerstone, from a conversions perspective, the cornerstone of conversion matrix is abandonment analytics and understanding why it is visitors to our web site don’t end up booking with us. So we look at the performance of a typical hotel’s web site and compare it with the online travel agents; there’s a gulf between the two. So people like Booking.com spend a lot of time, probably a lot of money in multi variant testing which is the key too that drives the conversion improvement. Hotels are starting to pay attention to that a little bit at the moment but what happens as a result is that as the online travel agents improve their conversion rate, their advertising cost per room night sold decreases. So what they’re able to do is carry on with a lot more digital marketing work which tends to be disruptive and gain an awful lot of OTA market share in that space where even if you look at – I think it’s got some of the leading hotel brands. They haven’t caught up from any like, science perspective terms of understanding that key component which is I guess the central component from a travel investment perspective.
The Hospitality Channel will continue to follow discussions around OTAs and bring you videos from experts within online travel agents. Look out for the next 10 industry experts to be announced as part of Hospitality250