And this is how it works..
Pricing Models
On meta-search sites, hotels and OTAs traditionally pay according to the PPC (pay per click) model. This means there is a cost for every click through to the website, whether it results in a reservation or not. Two new pricing models have recently emerged: Cost per acquisition (CPA), whereby hotels only pay when a reservation is actually concluded. Cost per stay (CPA), where the amount is only due if the guest checks in. Each model has different advantages and allows you to be displayed higher up in the results list, leading to more reservations.
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Cost per click (CPC)
The metasearch engines work on the basis of pay-per-click (PPC) or cost-per-click (CPC) pricing models. This means you have the option to define on the providers’ platforms which specific cost per click you are prepared to pay. As soon as you receive a click, you will be billed for this amount.
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Cost per acquisition (CPA)
With an acquisition-based pricing model, you pay a percentage, which you define with Hotel-Spider. The costs are then only due when a reservation is made. This means you can increase your online presence on Google and Trivago without the risks associated with the click-based model.
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Cost per stay (CPS)
The cost-per-stay model puts METASEARCH providers on the same level with the OTAs, in terms of the costs. They only pay when a guest has actually stayed with them. Compared to the click-based pricing model, and even the acquisition-based model, the risk is reduced to zero. You have a presence on the platform, generate more direct Reservations and it only costs you if you also receive payment for the stay.
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You’ll find more info, tips and tricks relating to metasearch in the following hotel tech videos
