Published on
November 6, 2024

Understanding the Booking.com algorithm and how to boost your ranking

One of the best kept secrets in the hospitality industry is how the Booking.com search algorithm decides which listings rank on top, and which at the bottom. In this blog we are revealing parts of this secret. For hoteliers, understanding how this algorithm works and using this knowledge effectively can improve Booking.com hotel listing rankings, increase bookings, and maximize revenue.

What does this blog cover:


The Core Formula Behind Booking.com’s Algorithm

- How user experience impacts Booking.com listing rankings

- How Booking.com matches listings to the right audience

Key Factors Influencing Booking.com’s Rankings

1. Click-Through Rate (CTR)

2. Booking Performance

3. Guest Reviews and Ratings

4. Pricing Strategy and Rate Competitiveness

5. Availability and Calendar Management

How to Find and Use the Ranking Dashboard on Booking.com

- Understand the Key Metrics

- Compare Your Property's Ranking:

- Click Through Rate (CTR):

- Property page views:

- Number of bookings:

- Regularly Check the Dashboard:

How to Increase Your Booking.com Ranking Automatically

Conclusion: Navigating Booking.com’s Algorithm

The Core Formula Behind Booking.com’s Algorithm

Just like most companies, Booking.com is focussed on making as much profit as possible. That is why the core of its search algorithm is based on a formula designed to prioritize properties that generate higher profits for the platform. This formula calculates several factors, such as strong booking performance, competitive pricing, and high commission contributions. The simplified formula is:

Expected Profit = (Number of Reservations × Average Selling Price × Commission Percentage) − Acquisition Costs

What can we learn from this formula? It emphasizes three key components that can improve your Booking.com listing:

  1. Number of Reservations: Properties that consistently generate more bookings rank higher.
  2. Average Selling Price: Listings with competitive prices that generate more revenue are favored.
  3. Commission Percentage: Higher commission rates can boost your Booking.com ranking by contributing more to the platform’s bottom line.

In the following of this blog we will go deeper into the inner workings of the algorithm to give you some actionable tips on how to reach those goals and increase your ranking. 

How user experience impacts Booking.com listing rankings

Booking.com’s success is for a big part thanks to how it succeeds in showing the most relevant listings to their visitors. This Booking.com’s search results are shown to potential guests based on how interesting each listing is to their specific search criteria. 

But how does the algorithm do this? The platform uses a variety of factors, such as search history, current market demand, and property performance, to determine the ranking of properties. This creates a personalized experience for the visitors.

How user experience impacts Booking.com listing rankings

How Booking.com matches listings to the right audience

  1. Relevance to User Searches: The ranking depends strongly on how well a listing matches the user’s preferences, such as location, property type, and availability for their desired dates.
  2. Search and Booking History: The algorithm takes into account the guest’s previous searches and bookings to personalize the search results. This means that if a traveler saw your listing before, the chances are much higher that they will see it again in a later search. 
  3. Market Demand: High demand in certain areas can influence rankings. Properties that adjust their availability and pricing based on local market conditions often perform better.
  4. Property Performance: Your listing’s overall performance on Booking.com, including conversion rates, guest reviews, and responsiveness, affects your ranking. The better your property performs, the higher it will appear in search results. And this is where you have the biggest impact to improve your ranking.
     

Let’s dive deeper into how you can improve your Booking.com listing performance. 


Key Factors Influencing Booking.com’s Rankings

Understanding how to improve your Booking.com listing requires focusing on the following ranking factors:

1. Click-Through Rate (CTR)

First of all, what is a Click-Through Rate (CTR)? It is a metric that reflects how often users click on your Booking.com hotel listing when it appears in search results. 

The formula looks like this:

CTR=(Number of Impressions / Number of Clicks​)×100

A higher CTR shows Booking.com that your listing appeals to potential guests, improving your ranking.

Actionable Tips:

  • Test Different Thumbnails: A/B testing different thumbnail images can help determine which photos are most appealing to your target audience. Take fixed periods, for example 1 month to test out the performance of your listing with different thumbnail images. Switch between room interiors, scenic views, or amenities like a pool or garden to see what drives more clicks.
  • Tailor to Your Target Audience: Cater your description to the type of guests you want to attract. For instance, if your property is family-friendly, emphasize features like “Spacious Rooms with a Kid-Friendly Pool.”
  • Target Long-Tail Keywords: Include location-specific keywords that visitors might search for, such as “Pet-Friendly Villa in Tuscany” or “Budget Hotel Near Central Park.” These can increase the chances of your listing appearing in more relevant searches and driving higher CTR.

2. Booking Performance

The more bookings your Booking.com listing generates, the better your ranking will be. 

Actionable Tips:

  • Improve Conversion Rates: Make sure to offer flexible booking policies, competitive rates, and clear, detailed property descriptions for your Booking.com listing. 
  • Use Promotions: You can participate in Booking.com’s Genius Program to enhance visibility and secure more bookings.

3. Guest Reviews and Ratings

User reviews are essential for improving your Booking.com hotel listing ranking. Properties with consistently high average scores are ranked higher because they prove guest satisfaction.

Actionable Tips:

  • Encourage Positive Reviews: Make sure to ask reviews from every happy guest. 
  • Enhance Guest Experience: Listening to the feedback you receive and implementing it to keep improving your guest’s experience, in turn your reviews will get better and your will be ranked higher. 
  • Answer Reviews: Answering reviews quickly and in a positive way is an important part of improving your listings performance. Not only does the algorithm like this, since it shows you are an active user of the platform. It can also correct negative feelings people may get from negative reviews on your Booking.com listing. 

4. Pricing Strategy and Rate Competitiveness


Competitive pricing is a cornerstone of Booking.com’s algorithm. Listings offering great value are more likely to rank higher because they convert better.

Actionable Tips:

  • Use Dynamic Pricing: Adjust rates in real-time based on demand, seasonality, and competitor pricing. 
  • Maintain Rate Parity: Ensure that your rates on Booking.com are consistent with other OTAs and your direct website.
  • Implement Innovative Revenue Management strategies: Otamiser’s Booster offers a personalized revenue management service. Professional revenue managers handle your revenue management system by implementing innovative strategies that ensure your listing ranks better and generates more revenue. 


5. Availability and Calendar Management

Booking.com’s algorithm prefers listings that are regularly updated and offer wide availability. Ensure that your availability is up-to-date and that you have a wide booking window, this will help improve your Booking.com hotel listing ranking.

Actionable Tips:

  • Update Availability Frequently: Keep your property’s calendar updated regularly, even during slow seasons.
  • Widen Your Booking Window: Offer availability well into the future to appeal to both last-minute and long-term planners.

How to Find and Use the Ranking Dashboard on Booking.com

Before implementing these tips, it might be helpful to know where you are at now. You can find how well your Booking.com listing is performing on Extranet. If you don’t know where to find it, don’t worry, we created a step-by step explanation. 

  1. Log into the Booking.com Extranet

  2. Go to the Analytics Section
  • Once logged in, you’ll see a menu on the top of the dashboard. Click on ‘Analytics’ to
How to Find and Use the Ranking Dashboard on Booking.com
  • open a dropdown menu of tools and insights.

  1. Select ‘Ranking Dashboard’:
  • From the Analytics dropdown, choose the ‘Ranking Dashboard’ option. This will take you to the section where you can track key performance metrics related to your property's ranking.
Select ‘Ranking Dashboard’:

Understand the Key Metrics

In the Ranking Dashboard, you can analyze your performance in several key areas over different time periods (e.g., last 30, 90, or 365 days). Let’s break down how you can interpret the different metrics. 

Compare Your Property's Ranking:

  • Your Search Results Score will provide a direct comparison with other similar properties in your area, helping you understand how competitive your listing is.
Compare Your Booking.com Listing Ranking:


Click Through Rate (CTR):

  • If your CTR is low compared to search views, it may indicate that your listing title, description, or main photo need improvement to attract more clicks.

Property page views:

  • A high number of views but low property page views could suggest that your pricing or offer isn't competitive enough.

Number of bookings:

  • Review your bookings data and compare it with cancellations to ensure your policies are not scaring away potential  guests.

Regularly Check the Dashboard:

  • Keep an eye on these metrics weekly or monthly. Trends over time can help you identify whether specific changes you make (e.g., updating pricing or offering promotions) are helping to improve your ranking.

How to Increase Your Booking.com Ranking Automatically

Managing all these factors manually can be time-consuming. Otamiser’s Booster solution automates the optimization of your Booking.com listing. It is the first ever OTA ranking management solution. Using a unique algorithm that scrapes the data from Booking.com and other OTAs on a daily basis, it knows what ranking factors are determining the position of listings. This way it can influence those parameters and ensure top positions for the listings connected to it. By including a personalized revenue management solution, it creates on average 24% increase in revenue for listings using the solution. 


Conclusion: Navigating Booking.com’s Algorithm

Understanding Booking.com’s algorithm allows hoteliers to optimize their Booking.com listings for better visibility and increased bookings. By focusing on key factors like CTR, guest reviews, pricing strategy, and availability, you can significantly enhance your Booking.com hotel listing performance. Otamiser’s Booster can help automate these processes, ensuring that your property maintains a competitive Booking.com ranking. 

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