Today, we are talking about …
How investing in metasearch advertising will save you money.
How much are you really saving on metasearch?
To answer that question, we’ve all got to agree on this one simple premise.
If you’re not there…
Travelers will book through the OTA. Costing you 20% every single time.
Hear me out.
OTAs are your only real competition on metasearch engines like Google and Tripadvisor. They’re paying to show up every time someone searches your brand name. So it stands to reason that if you aren’t there and they are, you’ll be paying 20% every time.
But if your hotel is paying to be there.
Every booking you get saves you money. Right?
How much money?
Let’s run some numbers.
A hotel in Florida
Averages 7% marketing cost on metasearch. Compared to the OTA’s 20%. That means they are saving 13% on every booking.
This same hotel spent $150K on metasearch in one year. They generated $2.2M in revenue. That’s a 15:1 ROAS.
How much did they save?
20% of $2.2M = $440K
7% of 2.2M = $150K
$440K - $150K = $290K
They saved $290K in one year.
Is that for real?
Remember, we said it at the beginning of this article. We all have to agree on this one premise.
If you’re not on metasearch.
And the OTAs are.
You lose every time.
To the tune of 20%.
But the more you’re there.
The more you save.
Are you running the numbers on your metasearch advertising campaigns? What’s your marketing cost per booking? Is it 10%? 15%? As long as the marketing cost is less than the cost of the OTAs, you’re winning. Every single time.