Instant booking on metasearch sites is nothing totally new, but is becoming quite a big thing, with Google having recently doubled down on it.
If metasearch is leading to increases in conversion rates, it also shows that the classic metasearch model is shifting towards an OTA model.
NB: This is a viewpoint by Clement Bourguignon, who runs the French-language news site Voyagesurlenet.com
Kayak has been offering hotel instant booking for more than four years on its US platform. If originally booking on Kayak was suggested on top of merchants’ results, it seems that the option is now ranked according to the price that the white label powering it is offering. Generally, either Booking.com or Hotels.com will handle the booking.
Kayak also offers instant booking on Air Canada flights, following an agreement it has with that airline.
Hipmunk, the San Francisco-based metasearch, has also been offering instant booking on hotels for a few years, thanks to partnerships with such OTAs as Getaroom.com and Booking.com.
What differs from Kayak is that, on Hipmunk, users are able to select the OTA that will handle their instant booking. This seems beneficial on the user end, as it gives the possibility to choose who to book with, and on the supplier end, as it offers better brand awareness and more qualified traffic.
Recently, Tnooz reported that Skyscanner is now offering instant booking on flights for certain routes, with OTAs such as BudgetAir or Bravofly handling the bookings.
Google has also debuted in instant booking on its hotel product. Users can book within a Google page for a selection of independent hotels, via third-party providers.
With all the major metasearch sites now having adopted instant booking, we might wonder if this is just a trend and that everyone is just copying their competitors. The answer is: not at all. And the reason is simple: conversion rate.
Conversion rates are apparently much higher when users are not being redirected to another website. This is easily understandable:
- OTAs might lose users while they are being redirected
- Some OTA funnels are not performing well
- Users, if given the choice, will be more inclined to book with the site they are already using
On mobile, instant booking might be even more interesting. All merchants’ do not offer an optimized mobile version of their sites, and having multiple tabs/windows open is not the most convenient thing. Having the search and booking made on one single website or app is just an easier process.
Are metasearch sites becoming "lite-OTAs"?
If adopting instant booking seems like a logical thing for metas, what might be the consequences?
The biggest effect might be that the lines between OTAs and metasearch sites will blur. OTAs are advertising that they allow comparison, which is not really the case, given that they only allow to compare among their own offers.
In opposition, metasearch sites are deploying instant booking, powered by a few OTAs that the user is not always able to select.
Another major consequence is the impact this will have on providers such as airlines, OTAs, and hotel chains. If a user is not redirected to their websites, this means no possibility to cross-sell, to offer insurance, or ancillaries like seat upgrades. Those sales generate a lot of revenue for them.
In addition, brand awareness is also reduced, as the user is booking on the meta, not on the provider’s site. Having just their logo displayed in the top right corner of the meta site is not as interesting as having someone on their site.
For users, this will probably only result in more confusion. It is estimated that about half of users booking while going through a metasearch think they actually booked with the meta.
But despite all of this, conversion rates are increasing. Brand awareness or revenue? This is a choice that providers will have to make.
If OTAs such as Booking.com or Bravofly seem to be in traffic-acquisition-no-matter-what strategies, it probably is not the case for some airlines. Lufthansa's and Ryanair's recent moves seem, in any case, not to go towards that direction.
NB: This is a viewpoint by Clement Bourguignon, who runs the French-language news site Voyagesurlenet.com
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