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OTAs can be a double-edged sword. On the one hand, they give you global visibility and consistent bookings. On the other, commissions can erode margins. But how to figure out if your presence on OTAs is really profitable?
In this article, I explain how to monitor presence on OTAs effectively, what indicators to keep an eye on, and what tools to use to make informed decisions.
Why is it important to monitor presence on OTAs?
OTAs are a very powerful showcase. They allow you to reach travelers from all over the world, increase bookings and even benefit from the billboard effect: many guests discover your hotel on Booking or Expedia and then book directly on your site.
However, commissions can be steep (15% to 25% per booking), and if you don't control the numbers well, you risk giving away margins to platforms without real benefit. That's why monitoring presence on OTAs is not an optional extra, but a necessity to optimize revenue.
Key KPIs for evaluating the effectiveness of OTAs
To understand whether OTAs are really helping you, you need to keep an eye on a few key indicators. Here are the most important ones:
Occupancy Rate (Occupancy Rate)
The occupancy rate tells you how many rooms you have sold out of available rooms. If the OTAs are doing their job, this number should be growing. Calculating it is simple: just divide occupied rooms by total rooms and multiply by 100.
If you see occupancy going up thanks to OTAs, that's a good sign. If, on the other hand, it remains stable or falls, it may be time to revise your strategy.
Average daily rate (ADR)
The ADR (Average Daily Rate) is the average price you earn per room sold. If the OTAs are bringing you customers but the ADR is too low, you may end up working so much with low margins.
To calculate this, divide total room revenue by the number of rooms sold. Ideally, you want to maintain a balanced ADR that allows you to cover commissions and make a decent profit.
Revenue per available room (RevPAR)
RevPAR is one of the most important indicators because it combines occupancy and average price. It tells you how much you are getting for each room, regardless of whether it is occupied or not.
It is calculated by multiplying ADR by occupancy rate, or by dividing total revenue by the number of available rooms. A growing RevPAR means you are maximizing revenue the right way.
Cost of Sales (Cost of Sales %)
How much are you spending in commissions compared to the revenue generated? This KPI helps you understand if OTAs are worth the investment.
If commissions exceed 20-25% and you are not seeing an adequate return in terms of employment or ADRs, it may be time to review your presence on those platforms.
Conversion rate
How many visitors to your OTA page convert into reservations? A low conversion rate could indicate that your hotel tab is not attractive enough or that your prices are not competitive.
Average length of stay (ALOS)
If OTAs bring you customers who book for just one night, the cost of acquisition may not be justified. In contrast, longer stays improve profitability.
The best tools for monitoring presence on OTAs
Now that you know what to measure, you will need the right tools to do it efficiently. Here are the most useful ones:
ClickUp and Tableau
ClickUp is perfect for creating custom dashboards and monitoring KPIs in real time. Tableau, on the other hand, is a must for those who want advanced analytics and interactive reports. Both help you visualize data clearly and make quick decisions.
Google Analytics and Looker Studio
If you want to understand how users interact with your site after viewing your facility on OTAs, Google Analytics is essential. Looker Studio (formerly Google Data Studio) allows you to merge data from different sources and create custom reports.
Scoro and Datapine
Scoro is a business management software that includes features to monitor hotel performance. Datapine, on the other hand, is a business intelligence platform with predictive analytics and notifications for critical KPIs.
What to do if the presence on OTAs is not beneficial?
If after monitoring KPIs you find that OTAs are not performing as well as expected, don't worry. There are several actions you can take to improve the situation.
Reduce dependence on OTAs
Incentivize direct bookings through your website, targeted marketing campaigns and loyalty programs. Offer exclusive benefits, such as upgrades or extra services, for those who book directly.
Optimize rates and availability
Use a channel manager to avoid overbooking and keep prices competitive at all times. Tools such as SiteMinder or RateGain help you synchronize rates across all channels in real time.
Conclusion
Monitoring your presence on OTAs is critical to understand if you are getting the most out of these platforms. Use the right KPIs, leverage analytics tools and, if necessary, modify your strategy to reduce fees and increase revenue.
Remember: OTAs are a powerful ally, but only if you know how to manage them. Start keeping an eye on the numbers today and optimize your presence for better results!