The key message Expedia wants you and the consumer know, is “the hotel offers best tailored to the specific customer’s search criteria will always be the most visible in the Expedia Marketplace. That said, Expedia Marketplace visibility is determined by three factors: Offer strength, Quality Score, and Compensation. Offer strength is the most important factor and is a benchmark of price relative to value. In other words the lower your price within your competitive set of hotels, the more visibility you gain. But that’s not all, Expedia’s Offer Strength score will also look a the historical price customers pay on Expedia for your property, the popularity of your hotel on Expedia, as measured by the quantity of rooms actually booked on Expedia, and of course travel review scores. The second factor, Quality Score, reflects the competitivness and availability of your offers provided to Expedia, compared to the offers provided by your local competition. Measured by automated price comparison scripts, discounted rates that are only available on brand.com can negatively impact your hotel’s Quality Score - especially when your competitor is offering its best rate to Expedia customers. And, Quality Score also includes how often you walk Expedia customers and refunds related to relocations. The third area contributing to visibility is the compensation Expedia earns for a booking made on the Expedia Marketplace. A contribution, Expedia has to be very careful about, as fewer consumers would book on Expedia, if the top of the search results were dominated by low quality, high compensation offerings. That’s why hotels with poor Offer Strength and Quality Score cannot buy their way to the top. But compensation can make a difference among hotels with similar Offer Strengths and Quality Scores. And, because compensation expenses are always matched to revenue, hotels can’t run through their marketing budget with few or no sales like they can with CPC based forms of advertising. Expedia says it’s Marketplace business model acts as a natural feedback loop that keeps the visibility components in balance. If you want to learn more about Expedia Accelerator and TravelAds read this article at Tnooz or download the full whitepaper (PDF 831 KB). Read also "For Expedia, hotels are the losers in direct-booking push"