Hotel Online  Special Report

   
Thayer Interactive Group�s Clients Outperform All Industry Benchmarks For First Quarter 2003 Online Revenue

TIG�s Clients Achieve 98% Internet Revenue
Growth v. 3.6% GDS Growth 

WASHINGTON, D.C. � May 30, 2003 � Thayer Interactive Group (TIG) announced today that its hotel clients realized a 98% increase in Internet revenue for First Quarter 2003 versus First Quarter 2002, which was substantially higher than industry benchmarks for Internet revenue and electronic bookings.  TIG compared its findings against industry data for First Quarter 2003 revenue growth, including:
 

Revenue Growth � 
First Quarter 2003 v. First Quarter 2002
STAR Industry RevPAR  -1.6%
GDS & Electronic Revenue  3.6%
Consumer Internet Revenue (Includes GDS and Pegasus-powered travel sites such as Priceline and Hotwire)  19.0%
TIG Client Internet Revenue  97.7%
Sources: Smith Travel Research, TravelCLICK E-Monitor

�These growth results are higher than we expected,� said Frederic W. Malek, TIG chief executive officer.  �We compared �same client� sales year-over-year and found astonishing growth, not only overall, but in particularly weakened markets such as New York and Washington, D.C. Our ability to drive incremental revenue through higher ADRs and lower customer acquisition costs is the secret to our proven model.  We anticipate our full-year results for 2003 will be even higher than those reported last year.�

The hotel industry has struggled through a difficult economy, the war in Iraq, and the recent impact of SARS.   Occupancies remained depressed in the United States and around the world during First Quarter 2003, with a 1.6% decline in overall industry RevPAR, according to Smith Travel Research. 

�Our success in spite of economic conditions has created a buzz in the hotel industry,� said Lyn Locke, TIG vice president of sales and marketing.  �Thayer Interactive Group offers the highest level of hotel online marketing service, by combining a proven track record of results with an intense focus on client support. We understand the hotel business and know how to leverage the Internet distribution channel for maximum revenue.�

TIG�s online marketing strategy produces an average of $750,000 to $1.5 million in incremental revenue for hotel clients, depending on the market.  The firm works with properties that range in size and type from 100-room mid-priced hotels to 1,350-room luxury resorts.  Its program continues to produce strong results for leisure and transient markets, urban and suburban locations, resorts and convention properties, and branded and non-branded hotels.

�Travelers have permanently shifted to Internet sites to book travel, especially hotel rooms,� said Philip W. Schneck III, TIG president.  �We have seen a continuing trend of increases among both unmanaged business and leisure travelers, who feel empowered by immediate online access to hotel information and travel options. Our clients appear at the top of search engine results, which drives customers directly to their own sites, bypassing the intermediary fees that erode room margins.�

Industry sources also report that consumers are planning and booking travel closer to the time of departure, evidenced by shortened booking windows for both leisure and business travel.   Because the Internet allows consumers to find and book accommodations quickly, hotel customers are shifting from traditional channels such as travel agents to the Internet.  According to First Quarter 2003 industry data, travel agent revenue dipped 4.6%, while online consumer revenue rose 19% against First Quarter 2002 results.

�The preceding two years have been tumultuous for the industry,� said Malek.  �Hoteliers have been forced to contend with the economy, the impact of 9/11 and the Iraqi war, the rise of intermediaries, the growth of insurance costs, and the threat of SARS.  The details of future challenges are not yet known.  What we do know is that the Internet channel is experiencing phenomenal growth, while traditional channels are seeing flat performance, at best.  Properties need to invest in this growing distribution channel today to enjoy tremendous revenue growth in the months ahead.� 

Thayer Interactive Group (TIG) is a full-service Internet marketing firm designed to maximize online revenue and minimize effort for its hotel clients.  The company�s clientele ranges from branded and franchised hotels such as Choice Hotels, Hilton, Marriott, Six Continents and Starwood properties, to family-owned, independent hotels.  TIG is the preferred provider of localized, web-based marketing for more than 150 Doubletree hotels for the Hilton-family brand. 

 

###

Contact:

Lyn Locke
Thayer Interactive 
Ph: 202-745-6972
http://www.thayerinteractive.com


 
Also See: Ocean Point Beach Resort and Spa Selects Thayer Interactive Group To Provide Comprehensive Internet Marketing Services / May 2003
Thayer Interactive Group Selected By Quorum Hotels And Resorts To Provide Full-Service Internet Marketing / April 2003
Thayer Interactive Group Taps Industry Veteran To Head Sales And Marketing Efforts / March 2003


To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.