Expedia and other OTAs have long touted what has become known in the industry as “the billboard effect” whereby they have claimed that positioning on their sites generates not only bookings through the OTA but also a halo effect on the hotels’ own sites by generating brand awareness.
Non-loyal consumers start many of their searches at an OTA to gain a perspective on the options available, relative costs and positioning of the hotels in a given market against one another. Then, they often check other sites to compare pricing – usually including the website of the hotel they are interested in.
In a new whitepaper, Cornell assistant professor Chris Anderson has measured the billboard effect with a several branded and unbranded hotels. The results are striking, particularly for the independent hotel in the test.
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