One King West sees ROAS increase by 97% using Price Match

Background

One King West faced challenges in a market dominated by large Online Travel Agencies (OTAs). Consistently being undercut and with a limited marketing budget, they found it difficult to remain competitive in the most price-sensitive channel, metasearch.

We recently spoke with Don MacCorquodale, Director of Revenue Management, to understand how teaming up with Triptease significantly improved their metasearch performance and overall direct booking strategy.

The Challenge: Navigating undercuts and economic pressures

Like many hotels, One King West is not an enterprise brand and doesn't have the big budget to outspend OTAs. Don explained, "As an independent hotel, it's extremely important to win these opportunities because we have to get every dollar we can."

OTAs undercutting One King West was the core issue. Don further mentioned, “It’s always a revolving door of undercutting procedures.”

Additionally, Don highlighted a nuanced challenge: "If you only have a few rates to offer, you can inadvertently leave money on the table. Yet, in today's economy, where every dollar counts due to rising living costs, interest rates, and more, people are searching for true value. A good quality hotel that presents value clearly, especially through strategies like strikeout pricing, becomes much more appealing. This approach significantly contributes to our competitive edge, ensuring we're not just competing but winning against OTAs by demonstrating unmistakable value to our guests."

For him and One King West, Price Match on Metasearch was the right solution.

The Solution: Price Match on metasearch

Price Match automatically addresses the problem of being undercut by OTAs, enabling hotels to secure more direct bookings automatically. It dynamically applies rate discount codes to the hotel's pricing when they're being undercut, ensuring the direct price is marginally cheaper to secure the booking. This approach avoids blanket discounting while keeping the hotel in control of which OTAs to price match.

Don highlighted, “It’s easy to see on the platform what’s converting and what’s not - so that made a big difference. And when OTAs evolve and change their strategies, Triptease adapts with solutions to combat it. This takes the pressure off us, and we’re extremely thankful for that.”

"when OTAs evolve and change their strategies, Triptease adapts with solutions to combat it. This takes the pressure off us, and we’re extremely thankful for that."

Don Maccorquodale - Director of Revenue Management at One King West

 

Results: More bookings and better returns

• Saying goodbye to parity problems: Undercut rates dropped by 25%, and impressions, where One King West was cheaper or in parity, increased by 123%.
• Improved return on ad spend (ROAS): The financial outcome was impressive. "The return on ad spend was 97% or more when it was price matched compared to not, which is excellent." This indicates the hotel didn't just spend less; they earned more from each dollar spent.
• Small discounts, big wins: The majority of bookings won with Price Match used only a 1% discount. This is significant for hotels that often offer blanket discounts of up to 20% on their website to win the direct booking.

Conclusion: Small discounts, big wins

The right tools can empower independent hotels to not just survive but thrive against the competition. By focusing on what guests want and offering the best prices directly, any hotel can make a significant impact in a crowded market.