Details:
Fact:
Presence on Expedia creates brand visibility for suppliers as travelers research their trip, as well as increases traffic and bookings on the supplier site. This is known as the Billboard Effect.
Background Information:
Cornell University’s School of Hotel Administration & Center for Hospitality Research (CHR) sponsored research on the Billboard Effect to improve practices in the hospitality industry.
Procedure:
4 same-brand hotels were cycled on & off Expedia for similar time periods. When Expedia displayed properties they were found on the top of the first page of search results. When properties were cycled off, the properties could not be found anywhere on Expedia.
Timing: October-December 2009
Results*:
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There was a lift of bookings made on the supplier site ranging from 7.5% to 26%.
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The data confirms and quantifies the Billboard Effect, or the lift in reservations made on the supplier site as a result of the listing on Expedia.
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With the boost in reservations, also came a lift in ADR (average daily rate).