Online travel agency (OTA) search rankings can often leave hotel revenue and channel managers perplexed. It's not always apparent why one hotel is placed above another in the rankings. And to complicate things even more, the algorithms that determine the listings are always changing

However, the financial implications are indisputable: Booking.com frequently emphasizes that a staggering 80-90% of bookings are captured by hotels appearing on the first two pages.

But what propels a property to a higher position in these rankings?

The influencing factors may differ across OTAs, but a common thread includes: commission payout, room availability, rate parity with other OTAs and metasearch sites, and guest reviews.

One constant across all platforms is the conversion rate. A high conversion rate can catapult your property up the ranks. After all, booking platforms aim to streamline the customer's journey, quickly connecting them with their ideal stay. Hotels that satisfy this need are rewarded with an elevated ranking.

So, how can you optimize your positioning on these platforms? Here are six strategic tips to elevate your hotel's ranking, thereby attracting more guests.

1. Invest in reputation management

The importance of ratings and reviews in the hospitality industry cannot be overstated and OTAs are no different.

​​According to a 2023 purchase study report published by Expedia for hotel guests, ratings and reviews were a top five consideration.

OTAs are committed to ensuring that the on-site experience of their customers align with their expectations and the eventual reality of their stay. This is a key reason why there's a direct correlation between a hotel's reputation and its revenue: OTAs naturally steer customers towards properties with stellar reputations.

Understanding how OTAs use this information to rank hotels is crucial. They use algorithms that consider both the sentiment and quantity ratings and reviews. It goes without saying, a high volume of positive ratings and reviews can significantly boost your hotel's ranking.

So, how can you effectively manage your reputation?

  • Leverage all available tools to monitor your reputation across OTAs and social media platforms
  • Make it a priority to respond to all reviews, especially negative reviews. This shows that you value customer feedback and are committed to improving their experiences
  • Have a robust crisis communication strategy in place. So you can respond effectively to any potential reputational threats

Remember, beyond your physical property, your reputation is your most valuable asset.

2. Leverage guest reviews as social proof

Effective reputation management begins with the guest experience. Instead of merely reacting to reviews, take a proactive approach by encouraging departing guests to share their experiences.

This could be as simple as training your front desk staff to incorporate this request into their farewell interactions. Additionally, review requests should be seamlessly integrated into guest communications, as long as they align with contractual obligations.

Requesting reviews serves three key purposes:

  • It demonstrates to guests that their opinions matter, thereby increasing the likelihood of a positive review
  • It ensures that reviews remain current, as the freshness of feedback is a significant factor in review rankings
  • It provides real-time feedback that can be used to fine-tune your operations.

All three of these elements contribute positively to enhancing your ranking through an improved guest experience.

A consistent stream of positive feedback can significantly bolster your hotel's position. The Journal of Modern Hospitality states that, ‘hoteliers should leverage online reviews as a strategic tool for improving their performance in an increasingly competitive hospitality industry.’

The most potent strategy to secure a strong placement in search results is to deliver an exceptional guest experience that inspires positive reviews. After all, nothing speaks louder than the authentic praise of satisfied guests.

3. Set competitive but fair pricing

OTAs are often tasked with a clear mandate from their users: prioritize hotels offering the best value for a specific search. Given that the majority of users are price-conscious, competitive pricing is key to securing a favorable position in OTA search results.

Your rates should make sense in relation to your property's amenities and location while also complying with any contractual agreements.

It's important to remember that OTAs also conduct rate comparisons. If they determine that a rate isn't rational for the property type or date range, your property may slip down the rankings. An OTA is unlikely to favor a rate that doesn't align with those of hotels in the same competitive set.

A rate intelligence tool is invaluable in this scenario, as it ensures pricing optimization at all times. You can keep your prices accurate and reflective of market conditions in real-time with a few clicks, by tracking competitor past, future and current rates.

Setting the right price is not just about competitiveness; it's also about enhancing your visibility and appeal on these platforms

OTAs use pricing as a significant factor in their ranking algorithms. Competitive, rational, and fair pricing not only attracts more customers but also improves your ranking on OTAs.

Remember, your goal isn't just to set the lowest price to attract guests, but to set the right price to the right guest at the right time.

4. Maintain a complete OTA listing profile

OTA platforms don’t want to display incomplete listings to their users. If your content hasn't been updated for some time, isn’t accurate or the photos are of poor quality, the OTA may penalize your property by lowering its ranking.

The key to a successful listing is its conversion rate. The more effectively your listing converts lookers into bookers, the higher it will be displayed in the search results.

All OTAs have a ‘content score’ that they allocate to your listings (usually on a scale of 0-100). Should you strive to keep that score nice and high to stay in the good graces of the OTA's algorithms? Here are some tips to keep in mind when updating your content:

  • Imagery. Invest in high resolution images and aim to provide at least three photos for each room type available. Always include more photos than the minimum required to attract more bookings. And don’t forget to include shots of your property and its top amenities
  • Value. Make your profile answer all relevant questions, tailor it to the channel audience, provide all necessary information upfront, and include details about additional fees or important updates
  • Accuracy. Regularly update your profile to reflect changes at your property, including opening hours, room descriptions, room categories, and policies.
  • Quality. Maintain high-quality images, accurate and grammatically correct descriptions, list all amenities, and reflect your brand and guest experience correctly.

OTAs use the completeness and quality of a property's profile in their ranking algorithms. A comprehensive, regularly updated listing with high-quality images and detailed descriptions can significantly improve your hotel's ranking on OTAs.

Your OTA listing is often the first impression potential guests have of your property - consider it a form of hotel marketing. That’s why the quality and quantity of visual content is of the utmost importance.

Regular updates of descriptive content and images keep your listing fresh and appealing. Aim to review and update your listing content at least once a month, or more frequently if there are significant changes to your property or offerings.

5. Monitor rate parity across channels

Where possible, hoteliers want to avoid the commission that comes with OTA bookings to boost their bottom line. This continual drive for direct bookings has created tension between hotels and OTAs.

Hotels often offer loyalty discounts to encourage direct bookings on their own websites. However, if these discounts are not carefully managed, they can lead to punitive actions from OTAs, such as "dimming" where hotels are ranked lower in search results.

Although this practice has largely been phased out, it's important to be aware of it.

To avoid potential penalties from your key OTA distribution channels, it's crucial to honor your agreements and ensure that any exclusive rates offered on your brand's website are clearly differentiated.

OTAs use rate parity as a factor in their ranking algorithms. If your rates are consistently lower on your website compared to the OTAs, they may penalize you by lowering your ranking or reducing your visibility in other subtle ways.

These can include changes to the sort order, withholding of special logos or icons, or reducing the number of your hotel photos displayed.

Therefore, it's essential to regularly monitor your OTA listings for any signs of such bias. To monitor rate parity:

  1. Use the right software. Implement a solution that can automatically monitor your rates across different channels and alert you when disparities are found.
    • Rate Insight’s parity tab enables you to spot discrepancies in your room rates on OTAs up to 12 months in advance, listing parity issues with dates and the websites that caused them.
    • Esteni Pitout, Revenue Manager at Boschendal Wine Estate had this to say: In the past, I had to check each channel manually to find rate disparity cases. Rate Insight makes my life a lot easier in this regard. Now it takes me only two minutes to check and compare my prices across OTAs as well as other resellers. The parity tab lets me verify if all my restrictions are applied correctly everywhere. If I spot an issue, I can fix it immediately and avoid losing out on revenue.
  2. Communication. Maintain clear communication with your OTA partners about any exclusive discounts or promotions offered on your brand's website.

By carefully managing rate parity and monitoring your OTA listings, you can maintain a good relationship with OTAs, ensure fair competition, and ultimately, improve your hotel's ranking and visibility.

6. Follow channel management best practices

Effective channel management is key to optimizing your inventory distribution across the most profitable channels.

A channel management tool enables you to maximize your property’s exposure by distributing your listings across a wide variety of booking sites as well as niche OTAs to reach a broader audience.

You can then strategically prioritize those that drive the most business. This data can be leveraged to competitively price your inventory on high-converting channels.

OTA algorithms typically favor listings that demonstrate higher conversion rates. Thus, by allocating more inventory to channels that convert well, you create a positive feedback loop that can improve your hotel's placement on OTAs.

Consider the following best practices for channel management to help you increase your OTA ranking:

  • Channel management software: A channel management tool automates the process of managing your inventory across multiple channels. You can effortlessly administer prices, restrictions, promotions and availability in one platform, without the worry of overbookings.
  • Lighthouse Channel Manager is an all-in-one solution that centralizes and automates the management of over 200 global booking sites, so you can maximize your visibility and enjoy higher rankings.
  • Dynamic pricing. Combine Channel Manager with Lighthouse’s Pricing Manager to automatically push optimal rate recommendations for the next 365 days to all your connected distribution channels. The dynamic prices are based on market demand, events, competitor pricing, your real-time performance, as well as your own personalized rules.
  • Data analysis. Regularly analyze your revenue mix across different channels to identify high-performing OTAs.
  • Guest-friendly policies. During slower periods or on specific channels, consider implementing more guest-friendly policies. For instance, a more lenient cancellation policy can often lead to a higher placement on OTAs.

Understand how technology tools help hotels maximize the value of OTA partnerships

Navigating the intricate landscape of hotel distribution can be overwhelmingly complex - making manual management a near-impossible task. That’s why harnessing hotel technology is essential to fully capitalize on your OTA partnerships.

Channel Manager simplifies the process of managing your online booking channels by providing a centralized dashboard for real-time updates. This not only minimizes the risk of overbooking but also saves considerable time.

While OTAs are indispensable to your distribution mix, it's crucial to strive for maximizing direct sales. A key starting point for this is a well-crafted pricing strategy.

To stay competitive on all of your channels incorporating a pricing recommendation tool is advisable.

Lighthouse's Pricing Manager automates dynamic pricing across your hotel's room inventory, ensuring your rates are always optimized. Additionally, it aids in maintaining rate parity, a crucial aspect of OTA relationships, thereby further streamlining your distribution strategy.

By adhering to these six steps you have a roadmap to effectively manage your OTA partnerships, enhance your hotel's visibility, drive more bookings and improve both occupancy and profitability.

To learn more about the technology needed to enact these strategies click here.

Capture more revenue with Lighthouse's industry leading data sets: Request a demo.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways. Trusted by over 70,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners—their success is our success. For more information about Lighthouse, please visit: https://www.mylighthouse.com.

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