notitur.com August 24, 2026

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Billboard effect

The billboard effect is the phenomenon where showing up on an OTA also lifts the hotel's direct bookings. Many people discover the hotel on Booking and then book on its own site to save or out of trust. It helps put commission in perspective: part of that visibility pays for itself in direct sales.

Example A hotel notices that whenever it climbs on Booking, visits to its own website grow too.

Related terms

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OTA

An online travel agency is a channel that sells accommodation and travel online in exchange for a commission....

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Direct booking

A direct booking is one the guest makes through the hotel's own channels, with no middleman. It saves the OTA...

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Metasearch

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Agency model

In the agency model, the guest pays at the hotel and the hotel later settles the commission with the OTA. The...

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FAQ

What is the billboard effect in the hotel industry?
The billboard effect is the phenomenon where a hotel's visibility on an OTA like Booking or Expedia also increases its direct bookings. Many guests discover the hotel on the OTA and then book directly on its website to save on commissions or due to trust.
How is the billboard effect measured or calculated?
There is no standard formula, but it is estimated by comparing the growth of direct bookings before and after appearing on an OTA, controlling for other marketing factors. For instance, if direct bookings rise by 20% after listing on Booking, part of that increase is attributed to the billboard effect.
Why does the billboard effect matter for hotel management?
It matters because it helps hotels justify OTA commission costs, since part of that paid visibility generates commission-free direct sales. A hotel might accept a 15% commission knowing that 10% of that exposure results in extra direct bookings, effectively lowering the real acquisition cost.

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