What Is the Billboard Effect and How Can It Increase Hotel Direct Bookings?

In the hospitality industry the Billboard Effect is the phenomenon where OTA listings have the potential to increase direct bookings for hotels by working as a billboard for the hotel. In this blog we'll take a look at the actual data explaining the Billboard Effect and describing how you can use it to boost direct hotel reservations for your hotel.

What Is the Billboard Effect?

When potential visitors find your hotel via an online travel agency (OTA), such as Booking.com or Expedia, and immediately after they go to your website to make a direct booking, the Billboard Effect occurs. Thanks to this effect, hotels can benefit from visibility on OTAs to increase revenue without always paying OTA commission.

The effect was first named in research by Cornell University, conducted in 2017. This paper found that hotels listed on OTAs experienced a 7.5% to 26% increase in direct bookings thanks to the visibility on OTAs. This discovery was a game-changer, showing that OTAs could be used strategically to drive not just bookings on their platforms but also commission-free direct bookings.

Research shows that over 50% of travel searches happen on mobile devices. Additionally, Otamiser’s data showed that 65% of direct bookings come from guests who first saw the hotel on an OTA.

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A real life example putting the theory into practice

Historic Hotels is an example of a hotel that experienced the impact of the Billboard effect. This independent hotel chain collaborated with Otamiser to improve its OTA visibility on Booking.com and other platforms. Shortly after implementing the solution, all 5 hotels reached top positions on those third party platforms.

The results were great, increasing online visibility and occupancy, but the revenue manager of the chain was surprised to see one specific effect: “The most surprising results have been more bookings through our own website, bringing higher revenues and less commission.”

This proved that the Billboard Effect is still a powerful tool that hoteliers can leverage if they know how to do it right.

You can read more about Historic Hotels Belgium’s journey and results in this detailed case study.

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Key Factors That Influence the Billboard Effect

Now it is time to answer the question: how can you embrace the Billboard effect for your hotel. The effectiveness of the effect depends on multiple factors. These factors have an impact on guest’s decision to book directly after discovering your property on an OTA or go back to the platform:

Consistency Across OTA Listings and Website: When there are big differences between your OTA listing and your website, like mismatched prices, old photos, or inconsistent descriptions, it can confuse potential guests. This might lead them to return to the OTA and book with a competitor instead. You can avoid this by making sure that your OTA listings are up-to-date and match what’s on your website.
Mobile Optimization With the rise of the mobile-first movement, it has become crucial to make your website mobile-friendly. If your website creates a smooth mobile experience with a simple booking process, there is a much bigger chance that a guest who found you on an OTA will complete the reservation directly on your site.
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Direct Booking Incentives One of the most effective ways to convert OTA visitors into direct bookers is by offering exclusive benefits for booking directly. Research by Triptease shows that 58% of travelers are more likely to book directly if they receive perks like flexible cancellation, free breakfast, or discounts. These incentives can make a significant difference in encouraging guests to book on your site rather than returning to the OTA.
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Use Tools Like Otamiser Booster to Enhance Visibility: Otamiser’s Booster is a groundbreaking solution, designed to push hotels to the top of the search results on OTAs. This increases listing views by on average 150%. This visibility increases the likelihood that guests will see your listing on an OTA, click to learn more, and ultimately visit your website to book directly. When combined with a well-optimized website and direct booking incentives, this can greatly amplify the Billboard Effect
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Engage with Retargeting Ads to Capture OTA Viewers: Retargeting ads are powerful tools that keep your hotel front-of-mind for guests who found you on an OTA but didn’t immediately book. This strategy gently reminds them of your property as they continue browsing, encouraging them to return and book directly on your website. Here’s how to implement retargeting ads effectively. You can use Retargeting on Social Media Platforms: Facebook and Instagram retargeting ads are highly effective for the travel industry, as users are often browsing on these platforms. Ensure your ads are visually compelling and include a strong call-to-action, like “Book Direct for the Best Rate!”
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Leverage Positive Reviews for Trust-Building and Conversion: Reviews are among the most powerful tools for establishing trust and encouraging direct bookings. Here’s how to strategically use OTA reviews and direct testimonials to enhance credibility and increase conversion. You can dedicate a section of your homepage or booking page to showcase recent, highly-rated OTA reviews. Use reviews that highlight specific strengths, such as cleanliness, hospitality, or unique amenities, as these resonate well with potential guests. Consider labeling this section as “What Guests Say About Us” or “Why Guests Love Us” for added impact.

Track and Measure the Billboard Effect

To understand how well the Billboard Effect is working for your hotel, it is important to regularly analyze your website traffic. You can Use website analytics to track how many visitors are coming from OTAs.

Here’s a quick guide to finding the source of visitors on your website via Google Analytics:

Log in to Google Analytics
In the left-hand menu, go to Acquisition > All Traffic > Source/Medium. This section shows you the main sources driving traffic to your website.
In the Source/Medium table, look for popular OTAs (like expedia.com, booking.com, etc.) to see how many users are visiting from these platforms.
Analyze Visitor Behavior: Click on any specific source (like booking.com) to view more detailed metrics, such as how long visitors stay on your website, how many pages they view, and whether they complete a booking.
Track Conversions: If you have conversion tracking set up (for example, tracking completed bookings as goals), you can see how many visitors from OTAs eventually convert into direct bookings.

Based on this data you can see the potential conversion you are missing out on. By improving your website’s flow, simplifying the booking process and increasing consistency across your website and OTA listings, you can get more direct bookings thanks to your OTA visibility.

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Conclusion: Making the Billboard Effect Work for You

The Billboard Effect remains a valuable strategy for hotels looking to increase direct bookings, most of all for independent and boutique properties, who can’t really rely on their brand to attract organic website visitors.

By focusing on OTA visibility, maintaining consistency across platforms, and creating a strong direct booking experience, you can use this effect to reduce commission costs and drive more revenue.

As Richard Gale from Historic Hotels Belgium puts it, “The most surprising results have been more bookings through our own website, bringing higher revenues and less commission.” By optimizing your OTA presence and encouraging direct bookings, you’ll set your property up for sustainable growth and success.

Book a call with Otamiser’s experts for more information.