How Promotion Logic of Each OTAs Works (Cont.)

"Learn how promotions and campaigns work on Expedia and Traveloka, and how to optimize your strategy for better rankings and conversions."

Hotel Marketing & hotel channel manager in OTA

How Promotion Logic of OTAs Works (Cont.)

Continuing from our last article, where we delved into the workings of promotions and campaigns on two major OTAs in Thailand, this week we'll explore how promotions and campaigns function on two other players, Hotel Channel Manager : Expedia and Traveloka.

 

How Expedia's Promotions Work

Expedia categorizes promotions into several types:

Type 1: Regular Promotions, whicn include:

• Package Promotion: Targeting customers who book far in advance and typically book both flights and hotels together. This group has a low cancellation rate, and those booking only hotels won't see these discounts unless paired with a flight.
• Value Add Promotions: Offers additional services like free breakfast, parking, or spa treatments. Ideal for hotels that don't want to discount room rates
• Early Booking: Offers steep discounts for customers booking well in advance, typically at the lowest rate.
• Create Your Own: Customize promotions with conditions like a minimum stay, discounts, or complimentary nights as desired.
• Same Day Deal:  For customers booking and checking in on the same day.
• Location-Specific: Allows targeting customers from specific countries, similar to Booking.com’s Country Rate.
• Campaign: Join Expedia-led campaigns with discounts not lower than their recommended minimum, while allowing customization of other conditions.

Type 2: Add-On Promotions (Ontop), includes only:

Members-Only: Exclusive to Expedia members, who typically book more than non-members. Membership is divided into four tiers:

1. Blue: Spend 13% more per booking and book 1.5x more per year.
2. Silver: Spend 13% more per booking and book 2.8x more per year.
3. Gold: Spend 21% more per booking and book 7x more per year.
4. Platinum: Spend 21% more per booking and book 7 times more per year, similar to Gold members.

This promotion adds a discount on top of other promotions, based on membership tier. Discounts can be set as follows:

• Blue Members: 10% off
• Silver Members: 12% off
• Gold + Platinum Members: 15% off

How Do Expedia's Promotions Work Together?

Expedia's promotion mechanics are straightforward and easier to understand compared to Booking.com and Agoda, operating as follows:

You can create any number of Type 1 regular promotions. These do not stack; instead, the best available discount for each qualifying customer is applied.

The best promotion from Type 1 is then combined with the Member Deal (Type 2), applying additional discounts according to the customer's membership tier (Blue, Silver, Gold, Platinum).

Expedia combines percentages directly for their promotions.

Planning for Expedia promotions should aim to align discounts similarly to those on other OTAs to avoid price disparity. If executed correctly and conversions occur, your ranking on the platform can improve.

In conclusion: Type 1 promotions do not stack but apply the best available discount for each customer. The best Type 1 promotion is then combined with the Member Deal (Type 2) for additional discounts based on tier.

"Properties in the top 15 sort positions get 75% of traffic."

How Traveloka's Promotions Work

Traveloka categorizes discounts into two types: Promotion and Rate Plan.

Type 1: Promotion

Traveloka’s promotions are similar to those of other platforms. You can create last-minute, early bird, and customizable promotions with conditions such as:

• Number of days the booking must be made in advance.
• Minimum number of nights required for a stay.
• Customer’s country of origin
• Booking period
• Stay period

 

Type 2: Rate Plan

• Mobile Exclusive Rate:For users accessing via mobile and the Traveloka app, targeting their primary user base.
• Member-only Rate: Available only to Traveloka members logged into their account; non-logged-in users will not see this discount.
• StayNOW Rate: For customers booking and checking in on the same day (Last-Min). This rate comes with a separate banner on the Traveloka homepage.
• Special Rate Plan: Used to participate in Traveloka's campaigns, targeting international or domestic customers such as those from Indonesia. Participation requires notification to the Market Manager.
• Package Rate Plan: A campaign for customers booking airline tickets alongside their hotel.
• TravelerXtra Rate Plan: For customers purchasing other Traveloka products such as flight tickets, train tickets, or activities. Package Rates are for flights and hotels only.
• Corporate Rate Plan 20%: Offers discounts to Traveloka's business partners, distinct from individual travelers.
• Affiliate: For Traveloka partners.

 

How Traveloka Calculates Promotions

Traveloka calculates promotions by taking the best available Promotion (Type 1) and adding it to the best Rate Plan (Type 2).

This method ensures that customers receive optimal discounts by combining the most advantageous offers available across both categories. Stay tuned for more insights on OTA promotional mechanisms in our future articles!

In conclusion:Traveloka applies the best Promotion (Type 1) and adds the best Rate Plan (Type 2), ensuring optimal discounts.

 

Threv
2 Ekamai 6 Sukhumvit 63 Phra Kanong Nua
Wattana Bangkok 10110 THAILAND
Tel: +6685 010 9291 (Khun Tar) 
E-mail: weyield@threv.co
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