When you created your accommodation’s OTA listing, you will have chosen room rates based on a number of factors. For example, the type of room will have had a bearing, so too would whether there are extras included such as breakfast, free off-road parking and/or Wi-Fi Internet.

But when was the last time you reviewed the rates you’re offering on the OTAs and actually changed them? For some accommodation owners, the answer will be ‘never’. If you’re one of them, you could be missing a trick and we’re about to explain why.

Starting in today’s post (the first of a three-part mini-series), we are going to explain the impact promotional rates can have on click-throughs; how you can take advantage of them; and finish with a real-life case study (success story).

Why lead-in rates are so powerful

Search for accommodation in a particular area on an OTA and you will be presented with a list of suitable options. One of the most prominent pieces of information you’ll see for each property listed is, of course, the price.

Promotional OTA Prices

In the example above, the price is clearly stated as £62. This is what’s known as the lead-in price i.e. the price people searching on OTAs see on the face of a particular listing.

The lead-in price shown is the lowest price for the particular hotel based on the dates and occupancy levels someone has searched for.

Now the reason why this rate is so powerful is because it has the ability to lure potential guests in and encourage them to click on your listing by displaying attractive prices.

Psychological pricing

You can manipulate your accommodation’s OTA lead-in price in a number of ways, but one of the simplest (and most effective) is to never use round numbers. So, instead of £80 opt for £79. The latter looks so much more attractive and just that £1 difference can impact your click-through rates. It’s the same as when you see a piece of clothing being offered for £9.99 and not £10. Psychologically, £9.99 seems a much better deal than £10 – even though there’s only actually one penny in it.

Providing your OTA listing is optimised and highlights your accommodation’s best features, it stand to reason that the more potential guests that click your OTA listing, the more conversions you’re going to enjoy. Your lead-in price can play a pivotal role in achieving this.

In the next part of this three-part mini-series on promotional rates, we are going to look more in-depth at why, when and how you would choose to change your prices and how you can easily recoup some of the discounts you offer.

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Frequently Asked Questions

Yes, we can provide you with our own channel manager and give you full connectivity support. Powered by our parent company Cultuzz you will easily benefit from real time distribution across hundreds of online channels. Update and manage bookings 24 hours a day 7 days a week. Our channel manager can be provided for a monthly fee.

This is dependent on the both the connectivity of your channel manager and the flexibility of your properties standard policies. At Recommended Hotels we have a view that the more sites you are listed on the better, but we would never recommend anything that wouldn’t work for you. Our Distribution Team are experts in OTA set up and are always happy to advise you.

Yes, our content service, focusing on internet visibility creates a billboard effect, thus driving more business via your own website.

Yes, our Distribution Managers will support you with this. If you use Cultuzz as your channel manager our Distribution Manages will load, map, and maintain all your special offers for you.
 
 

We hold regular reviews with our OTA partner with a view to negotiating betters deals for our clients and finding out what is changing before anyone else.

Complete OTA content is vital for a good position in the listings on any website and is one of the key factors when it comes to improving your properties conversion rates. If you want to get more bookings without paying more commission to the OTAs themselves then improving you content score is a must. At Recommended Hotels we will not just list you on new OTAs but will continually maintain you content to ensure a continued revenue increase.

We can offer you an Online Health Check which is a bespoke report that will look into all aspects of your online presence and allow us to analyse the best way to help you.

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