Bart-Jan Leyts, CEO and founder of Otamiser, explores how independent hotels can compete with larger chains on the OTAs by optimising search algorithms.
Online travel agencies (OTAs) have become a double-edged sword for hotels, offering both immense opportunities and significant challenges.
On one hand, platforms like Booking.com and Expedia provide hotels with unparalleled access to a global audience, connecting them with guests who might have been unreachable through traditional marketing channels. But this broad accessibility also presents a new hurdle: fierce competition in an increasingly crowded marketplace.
For independent hotels, the struggle to maintain visibility amidst the overwhelming supply listed on OTAs can be particularly daunting. They not only compete with other independent properties but also face the dominance of well-established hotel chains, which often have the upper hand due to large marketing budgets, strong brand recognition, standardised offerings and the scale to offer deeper discounts.
Yet independent hotels are far from powerless. In fact, they possess two significant advantages that even the most well-funded chains struggle to match: uniqueness and flexibility. The challenge and opportunity lie in transforming these advantages into effective strategies that make their listings more appealing on OTAs, ultimately boosting visibility and attracting more guests.
One of the most promising areas that independent hotels can capitalise on is the increasingly sophisticated search capabilities of OTAs. As travellers become more discerning and seek out unique, personalised experiences, OTAs are responding by refining their search algorithms, allowing users to find exactly what they’re looking for with greater granularity. This shift presents a significant opportunity for independent hotels, which are typically rich in the kinds of distinctive features and local touches that travellers crave.
Now is the time for independent hotels to fully embrace and showcase the unique, local and authentic experiences they offer. Unbound by corporate rules or standardised offerings, independents should see OTAs not just as marketplaces, but as powerful platforms that highlight what differentiates them — whether it’s original hardwood floors, standalone bathtubs or locally crafted furniture. Taking advantage of the increasingly sophisticated search capabilities of OTAs is all about optimising listings. This involves more than just filling out forms or uploading photos — it’s about creating a dynamic, engaging and highly relevant online presence that resonates with potential guests. Independent hotels need to ensure their listings are not only visually appealing but match the most relevant search categories, making them more likely to be discovered by travellers seeking specific experiences.
However, it’s important to remember that optimising listings on OTAs is a dynamic process. The parameters influencing the ranking of Hotel X in City Y might differ entirely from those affecting Hotel Z, whether in the same city or another. Therefore, conducting specific research for each hotel to identify the key data points influencing its rankings should be a crucial part of any independent hotelier’s strategy.
As OTAs continuously refine their algorithms and change how listings are ranked and displayed, independent hotels should remain agile. Regularly updating listings to reflect the latest trends and guest preferences, analysing OTA data and reviewing competitor listings, are all essential steps in staying ahead. This is where their smaller size is an advantage, as larger hotel chains will struggle to optimise multiple listings across their extensive portfolios in the same way. This ongoing process allows independent hotels to win greater visibility than larger competitors.
While larger hotel chains might have the resources to invest in sophisticated pricing algorithms, their lack of agility to optimise individual listings in real-time is a huge pitfall. Dynamic pricing, while effective for adjusting rates based on demand, cannot directly measure ranking changes on OTAs, meaning that many chains inadvertently sacrifice revenue by focusing solely on price when trying to drive visibility and traffic.
The independent hotels that master the art of optimising their listings don’t need to resort to lowering their prices to attract more bookings. Instead, listing optimisation actually allows them to raise nightly rates and yet maintain the same ranking. This is how ranking optimisation becomes a powerful arm of revenue management, resulting in less discounting and higher revenues.
Ranking optimisation has always been the missing piece of the revenue management puzzle. Really, the two things should never be separated. And for those hotels with the personality and time to invest in descriptions that resonate with a whole new way of searching for the perfect stay, have a wonderful opportunity to outmanoeuvre large hotel groups and increase prices as a result.
