Metasearch vs OTAs: Competitor Analysis Tips
Explore the differences between metasearch engines and OTAs, and learn how to analyze competitors to maximize hotel revenue.
Hotels face a key decision: Metasearch or OTAs? These two channels serve different purposes and require distinct strategies. Here's a quick breakdown:
Quick Comparison
Feature
Metasearch Engines
OTAs
Cost-per-click (CPC)
Commission-based
Redirects to hotel site
Handles full booking
High
Limited
Lower
10-30% per booking
Direct bookings
Broad audience reach
To succeed, hotels must monitor competitors, optimize pricing, and adjust strategies for each platform. This article explores how to analyze competitors effectively on both metasearch engines and OTAs to maximize revenue.
Metasearch vs OTAs: Key Differences
Metasearch Engines Explained
Metasearch engines, such as Google Hotel Ads and Trivago, function as price comparison tools. They gather hotel rates from various booking platforms, making it easier for users to compare options. These platforms operate on a cost-per-click (CPC) model, where hotels pay only when someone clicks on their listing. This approach gives hotels control over pricing and helps drive direct bookings.
OTAs: What They Are
Online Travel Agencies (OTAs) like Booking.com and Expedia work differently. They manage the entire booking process within their platforms, charging commission fees that typically range from 10% to 30% per booking [2][3].
OTAs maintain control over guest data, pricing terms, and communication. While they offer hotels a broad reach and consistent reservations, they limit direct interaction with guests and often enforce rate parity agreements, restricting a hotel’s ability to adjust pricing independently.
Comparing Metasearch and OTAs
The differences between metasearch engines and OTAs impact how hotels operate and strategize:
These differences highlight the need for hotels to approach metasearch engines and OTAs with distinct strategies tailored to each channel.
Metasearch Engines for Hotels, Google Hotel Ads, Wholesalers and OTAs
Analyzing Competitors on Metasearch Platforms
Keeping a close eye on competitors in metasearch platforms is essential for staying ahead. OTAs frequently undercut rates, making it crucial to monitor pricing and market trends effectively.
Key Metrics to Track
To succeed in metasearch, focus on these three important areas:
Ad Visibility: Keep tabs on how your competitors appear on platforms like Google Hotel Ads and Trivago. Look at their impression share and ad placements to see how your presence stacks up.
Price Positioning: Stay on top of your rates. OTAs often undercut prices, which can hurt your bookings and conversions if left unchecked.
Review Performance: Examine the number and quality of reviews your competitors receive. This can offer insights into improving your guest experience and overall rankings.
Tools to Gain a Competitive Edge
Using the right tools can make competitor analysis more effective. Here are some examples:
Tool Type
Key Features
Benefits
Rate Shopping Tools
Monitors real-time and past pricing
Spot trends and adjust pricing
Metasearch Dashboards
Tracks campaign performance
Refine bidding and manage ad spend
Parity Monitoring
Alerts for rate disparities
Ensure consistent pricing across channels
These tools not only provide deeper insights but also help improve direct bookings by keeping your pricing competitive and your ads visible.
Steps to Improve Metasearch Results
"Successful metasearch campaigns require collaboration between hoteliers and providers", says Benjamin Klein, Product Marketing Executive at Triptease.
Here’s how you can boost your performance:
Refine Your Bidding Strategy:
Manage Rates Effectively:
For hotels looking for an easier way to manage campaigns, AI-driven tools like Sail can help. Sail automates campaign adjustments, tracks performance in real time, and works on a pay-per-booking model, ensuring better visibility without overspending.
Metasearch platforms offer unique opportunities, but analyzing competitors on OTAs requires a different approach, which we’ll dive into next.
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Analyzing Competitors on OTAs
Assessing Competitor Listings
To effectively analyze competitors on OTAs, focus on the elements that influence booking decisions. Pay attention to their visual content, property descriptions, and guest reviews. High-quality images can highlight amenities and create a strong first impression. Detailed descriptions should emphasize features like room amenities, location advantages, and any special services offered. Guest reviews, especially recurring themes, can reveal strengths and areas where competitors may fall short, such as response times or specific feedback trends.
Tracking Rate Parity and Pricing
Your pricing strategy plays a big role in both visibility and conversion rates on OTAs. With OTA commissions typically ranging from 10% to 30% per booking [1], it's important to strike a balance between competitive pricing and profitability.
Here are two key strategies:
Using OTA Analytics
OTA analytics tools can provide valuable insights into market trends and competitor performance. These tools help refine your strategy by analyzing metrics such as conversion rates, search rankings, and click-through rates. Combining this data with third-party tools can help you maintain your market share while boosting revenue through smarter pricing and content decisions.
Focus on these areas to make the most of analytics:
Combining Insights for Strategy
Balancing Channel Focus
To make the most of your channel mix, focus on analyzing performance metrics across different platforms. For example, if metasearch campaigns like Google Hotel Ads bring in better ROI compared to OTA commissions, consider allocating more budget to those. Metrics such as conversion rates and acquisition costs can help you decide where to invest your resources. Once you've fine-tuned your channel allocation, use the data from these platforms to adjust your pricing and promotional strategies.
Using Cross-Channel Data
Analyzing data across channels can help you fine-tune your pricing and promotions. Keep an eye on competitor pricing and seasonal booking patterns to strategically adjust your rates and offers. This approach can boost both your visibility and profitability.
Key metrics to monitor include:
Armed with this information, you can take a more strategic approach to stay ahead in the market.
Staying Ahead of Competitors
For metasearch platforms, focus on optimizing your bidding strategies based on current market trends. On OTAs, ensure your listings are competitive by regularly updating content and using dynamic pricing. Tools like Sail, powered by AI, can simplify campaign management across multiple channels while helping you maintain rate parity and increase direct bookings.
Conclusion: Choosing Your Hotel's Marketing Strategy
Thriving in the hospitality industry means taking a thoughtful approach to both metasearch platforms and OTAs. By understanding how these channels differ, hoteliers can make smarter decisions about where to invest their time and money [1].
Analyzing competitors on these platforms is key to staying ahead. By examining performance metrics across channels, hotels can uncover ways to improve their visibility and fine-tune their strategies. For metasearch platforms, focus on metrics like click-through rates and conversions. On OTAs, competitor pricing insights can guide decisions on pricing and promotions [2][3].
Technology plays a big role in simplifying multi-channel management. AI-powered tools can help with competitor analysis and campaign management, freeing up time to focus on pricing adjustments, promotional strategies, and budget allocation. Using these tools effectively allows hotels to strike a balance that boosts both visibility and profitability.
The goal is to combine metasearch and OTA strategies in a way that works best for your property. A well-rounded plan should:
Success doesn’t come from choosing one platform over the other - it’s about finding the right mix for your property while keeping direct bookings a priority [4].
