The billboard effect is the phenomenon where a hotel's presence on OTAs generates additional direct bookings, because travelers discover the property on the OTA and then book on the hotel's own website.
OTA listings function as advertising the hotel does not pay for until a booking happens there. Some travelers use OTAs for discovery and comparison, then search the hotel by name to check the official site, its photos and its direct price.
The effect's size is debated and varies by property and market, so it should not be used to wave away commission costs. What is actionable is capturing the spillover, ranking for the hotel's own name, showing a competitive direct offer and making the switch effortless.
← sesion.org · All categories · Advisors · Blog · Glossary