Promotions on OTAs have become one of the main tools for improving accommodation performance across these channels. Beyond their traditional role as a pricing incentive, they now serve a broader purpose within a distribution strategy: they influence visibility, shape travelers’ booking decisions, and help hotels manage demand more effectively.
The current market context helps explain this shift. Traveler behavior has evolved toward greater price sensitivity. According to data from our partners Expedia and Booking.com, more than 60% of travelers say they will be more careful with their spending when booking trips, and more than half actively filter for accommodations that offer some form of discount or promotion. In this scenario, promotions are no longer simply a conversion driver; they also act as an entry point into the search process. This is reinforced by the way OTAs operate. In general, platforms tend to highlight properties with active promotions through visible badges, comparison pricing, or inclusion in dedicated campaigns. This increases hotel exposure at key stages of the booking journey and helps drive qualified traffic to the property listing.
From an operational perspective, promotions support a range of objectives with considerable flexibility:
- Increase visibility within OTA platforms, improving exposure in search results and marketing campaigns.
- Capture demand at specific moments, adapting incentives to traveler behavior.
- Improve conversion rates by strengthening the perceived value through discounts or added benefits.
- Manage sales pace, balancing occupancy and pricing according to business needs.
Their real value lies in this adaptability. Rather than applying blanket discounts, promotions can be used as a targeted tool based on timing and demand segments. The good news is that the OTA ecosystem offers several promotion types, each designed for a specific objective. Among the most common are:
Last-minute promotions
Designed to attract bookings close to the stay date. They are typically used to sell unsold inventory in the short term and can generate revenue increases of between 15% and 20%, according to data provided by Booking.com and Expedia, compared with similar properties that do not use this type of incentive. They are particularly useful during periods of lower occupancy or when facing last-minute cancellations.
Early booking promotions
These promotions encourage travelers to plan ahead. This type of offer can increase bookings by up to 10% and is generally well received by travelers, as it reinforces the feeling of securing a good deal. It also provides hotels with greater forecasting accuracy and allows them to organize operations more efficiently.
Long-stay promotions
These focus on extending the average length of stay. Approximately 1 in 5 travelers responds to this type of incentive by booking additional nights. Their impact is not only commercial but also operational, as they help reduce costs associated with guest turnover and optimize occupancy levels.
Of course, these promotion types can be complemented by other common OTA initiatives, such as mobile-only rates, seasonal campaigns (for example, Black Friday), or market-specific discounts. The value of promotions does not lie solely in their individual use, but in how they are integrated into a broader strategy. Combining different promotion types allows hotels to address short-, medium-, and long-term objectives simultaneously: from attracting immediate bookings to building a solid occupancy base and maximizing value per stay.
In this sense, promotions are best understood as a demand management tool rather than a simple pricing policy. They allow hotels to decide when to prioritize visibility, when to encourage conversion, and how to adapt their offer to different periods throughout the year.
Conclusion
Today’s distribution landscape has firmly established promotions as a standard part of the OTA search and booking experience. Their role extends far beyond offering discounts and is directly linked to how travelers discover, compare, and choose accommodation. When properly understood and strategically implemented, promotions help hotels gain visibility, fine-tune their commercial strategy, and respond more effectively to a market where pricing and visibility are increasingly interconnected.
Cristina Torres. Director of Communications
