Study reveals hidden cost of rate disparity…
🏨 Hotels allowing OTAs to undercut their rates pay 47% more for PPC leads, with CPC at $0.97 when undercut versus $0.66 when offering the lowest rate themselves, as per SHR's analysis of 27 million impressions. Rate parity still costs hotels 35.9% more at $0.89 per click. These costs affect marketing budgets and profitability, urging a balanced strategy for direct bookings and OTA partnerships. The hospitality industry expects more direct bookings than OTA bookings by 2030, stressing the importance of direct channels. Steve Collins, VP of SHR, emphasizes the need for a holistic digital strategy.
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