Hotel Online  Special Report

>.

Major Hotel Chains Grow Internet Reservations
Over 22% in 2004; Brand Websites Increase
Volume of Reservations Over 31%
CHICAGO (April 5, 2005) � TravelCLICK today released its 2004 full-year eTRAK results, which indicate that Internet reservations received at the central reservation offices (CROs) of major hotel brands grew 22.8% versus 2003. 

In 2004, brand websites grew substantially and gained share compared to third-party merchant and opaque websites. According to eTRAK, brand websites were the source of 71.4% of the brands� centrally booked Internet reservations, compared to 66.5% in 2003. Reservations booked via brand websites climbed 31.9% over the 2003 level. 

Merchant websites, such as Expedia, Orbitz, Travelocity, etc., were the source of 8.6% of Internet reservations. Bookings via these channels grew by 9.0% over 2003. Opaque websites, such as Priceline and Hotwire, increased by 16.0% and sourced 7.5% of the brands� centrally booked Internet reservations in 2004. 

eTRAK is a quarterly benchmarking report that allows hotel chains to track booking trends on the Internet and GDS. The full-year 2004 eTRAK report highlights both the growth of electronic hotel bookings on the Internet and the continuing importance of GDS e-commerce for 32 major hotel brands and chains. eTRAK shows that 35.3% of CRO reservations came through GDS channels, while Internet sites contributed 30.7% of CRO reservations in 2004. In total, 25,691,776 bookings were made on these brands over the Internet last year. 

The 32 major brands also reported that, on average, 21.9% of their CRO reservations were received from their brand website (i.e. marriott.com, hilton.com, etc.), 2.6% of CRO reservations were received from merchant sites and 2.3% were received from opaque sites. Slightly more than one-third, or 34.0%, of CRO reservations were made via phone.

Results from this study may differ from overall hospitality industry trends on the Internet and GDS because eTRAK reflects only the performance of 32 major brands. The conclusions, however, are directional for the industry as a whole. 

"2004 was a year of considerable growth for brand websites at the expense of merchant and opaque websites. The results show that third-party websites have lost share of Internet reservations booked on hotel brands," said John Hach, vice president and product manager of emarketing products for TravelCLICK. 

Reservation Sources for Major Hotel Brands � 2004 Full Year

CRO Hotel Bookings
Percent of 2004
Reservations
Percent of 2003 Reservations
Percent Change 
2004 over 2003 
Brand Websites
21.9%
18.1%
21.5%
Retail Websites
3.8%
4.3%
-11.1%
Merchant Websites
2.6%
2.2%
22.3%
Opaque Websites
2.3%
2.6%
-12.3%
Total Internet
30.7%
27.1%
13.1%
GDS Travel Agent
35.3%
36.5%
-3.3%
Total Electronic
66.0%
63.6%
3.7%
Voice
34.0%
36.4%
-6.5%
Total for CROs
100%
100%
 

Combined, Expedia and Hotels.com had a 65.9% market share of merchant bookings received at the CRO of the major hotel brands. Travelocity and Orbitz had market shares of 19.2% and 9.4% respectively. 

Priceline�s share of opaque bookings at the 32 major hotel brands was 77.8% in 2004, while Hotwire�s share was 22.2%. Priceline�s growth, at 16.6% year-over-year, outpaced that of Hotwire. 

Sources of Internet Bookings � 2004 Full Year

 
Percent Change over 2003 
Share of Internet Bookings 
2004 Full Year
Share of Channel Bookings
Brand Sites
31.9%
71.4%
100.0%
Retail Sites
-3.6%
12.5%
100.0%
Merchant Sites
9.0%
8.6%
100.0%
Expedia 
5.0%
3.0%
35.4%
Hotels.com
-15.8%
2.6%
30.5%
Travelocity
109.3%
1.7%
19.2%
Orbitz
-0.5%
.8%
9.4%
TravelWeb
24.5%
.3%
4.0%
Lodging.com
N/A
.1%
1.5%
Opaque Sites 
16.0%
7.5%
100.0%
Priceline
16.6%
5.8%
77.8%
Hotwire
14.1%
1.7%
22.2%
Total Internet
22.8%
100.0%
100.0%

The eTRAK report covers all central reservation office booking results including GDS, voice and Internet bookings. The report allows subscribers to compare their own performance versus their direct competitors and the industry in general. The unique information contained in eTRAK is intended to help hotel companies determine e-commerce priorities, such as where to invest Internet advertising dollars and which sites create the best returns. For more information about TravelCLICK�s eTRAK report, email [email protected].

About TravelCLICK TravelCLICK (www.travelclick.net) is the leading provider of solutions that help hotels and other travel industry suppliers maximize profits from electronic distribution channels. The company�s iHotelier booking engine platform and website marketing programs enable hotels to better execute strategies that increase business into their own websites. TravelCLICK's competitive benchmarking reports provide hotels with price and booking performance information, and the company's exclusive electronic marketing networks allow hotels and other travel related suppliers to target promotional messages to specific travel agents and consumers when they are booking travel. 

Established in 1996 and headquartered in Chicago, TravelCLICK has over 8,000 customers in more than 140 countries. 

 

 
Contact:

TravelCLICK
Marie Cabo, Marketing
847.585.5279
[email protected]
www.travelclick.net



 
Also See: Major Hotel Chains Grew Internet Reservations by 24% 2004 YTD; TravelCLICK Reports eTRAK Results from 30 Leading Brands / January 2005
TravelCLICK Launches ChannelManager in Europe; Increased Channel Support Enables Customers To Improve Their Online Revenue Stream / December 2004
TravelCLICK Appoints Jan Tissera President, TravelCLICK International / December 2004
Top 10 European Destination Markets Based on Electronic Room Nights During 3rd Qtr of 2004; Electronic Room Nights Up 10% for European Hotels / December 2004
The Top 10 Asia-Pacific Destination Markets for Total GDS Room Nights in Asia-Pacific in 2004 Q3; Electronic Room Nights Up 19.5% / November 2004
Worldwide Electronic Hotel Bookings Increase 5% in Third Quarter / November 2004
Electronic Hotel Bookings for Asia-Pacific Up 71.8% in Q2; The Top 10 Destination Asia-Pacific Markets Based on Electronic Room Night Bookings During the 2nd Quarter of 2004 / October 2004
Major Hotel Chains Grew Internet Reservations by 28% in First Half of 2004 TravelCLICK Reports eTRAK Results from 30 Leading Brands / October 2004
TravelCLICK Reports Second Quarter 2004 Electronic Hotel Bookings Increase of Over 10%; Hotel Revenue from Electronic Channels Up by More than 17% / September 2004
TravelCLICK Expands Commitment to iHotelier / August 2004
The Alexander, Miami Beach, Selects TravelCLICK as Electronic Distribution Partner / July 2004
JM Hoteles Selects TravelCLICK as Electronic Distribution Partner / July 2004
The Top 10 European Destination Markets for Total GDS Room Nights in 2004 Q1; Electronic Room Nights Grew 16.2% According to TravelCLICK / May 2004
The Top 10 Asia-Pacific Destination Markets for Total GDS Room Nights in Asia-Pacific in 2004 Q1; 
Electronic Room Nights Grew 26% According to TravelCLICK  / May 2004
TravelCLICK Reports 9.5% Increase in Electronic Hotel Room Nights Worldwide in Q1; Surprisingly, Hotel Revenue from Travel Agents Increased by 13.3% Year-over-year / eMonitor Results / May 2004
TravelCLICK Reports 6.3% Increase in Electronic Hotel Room Nights Worldwide in Q4; Travel Agent Bookings Represent 40% Higher ADR than Consumer Internet Channel / eMonitor Results / February 2004
Major Hotel Chains Grew Internet Reservations by 34% in 2003; TravelCLICK Reports eTRAK Results from 30 Leading Brands / March 2004
TravelCLICK Names Mandarin Oriental Hyde Park, London E-Marketer of the Year / January 2004
Electronic Bookings Up 10.5% in Q3 for Hotels Worldwide; Consumer Internet Component up 51.6% / eMonitor Results / November 2003
Brand Sites Produce 67% of all Major Hotel Chain Internet Reservations / eTRAK Results / October 2003
Hotwire.com Joins TravelCLICK's Consumer Media Network / October 2003
Travel Agents Still Rely on GDS for Hotel Selection; 83% of GDS Terminals Receive Text Messaging/Advertising / Ray Cohen / October 2003
Hilton International Selects TravelCLICK�s RateVIEW / September 2003
TravelCLICK Clients Report High Satisfaction with RateVIEW On-Demand Rate Comparison Tool; Over 1400 Hotels Worldwide Utilize RateVIEW / August 2003
TravelCLICK Interactive Combines With iHotelier / June 2003
TravelCLICK Gives NYU Investment Conference Attendees Real-Time View of Their Properties� Electronic Distribution Performance / May 2003
Worldwide Hotel Electronic Bookings Up 4.6% in Q1; TravelCLICK�s eMonitor Now Includes Third Party Internet Bookings from Pegasus / TravelCLICK eMonitor / May 2003
TravelCLICK Reports Recovery for Hotel Bookings on Internet and GDS since Onset of Iraq War - Company Issues Tips to Hotels: Don't Stay Quiet / April 2003
Strategic Hotel Capital Endorses TravelCLICK Products / April 2003
Cornell�s Center for Hospitality Research Partners with TravelCLICK to Help Hoteliers Improve Revenue Management Strategies / April 2003
Hotels Experienced Considerable Growth in Room Nights Booked Electronically Through the Global Distribution Systems in Q4; Luxury Segment Room Nights Booked Electronically Grow 21% / TravelCLICK eMonitor / Feb 2003
Electronic Bookings for Worldwide Hotel Industry Show Improvement - TravelCLICK Issues Third Quarter eMonitor / November 2002
Report on Electronic Bookings for Worldwide Hotel Industry Shows Luxury Segment Leads the Way to HotelRecovery in Q2 / TravelCLICK Issues Second Quarter eMonitor / Aug 2002
Room Nights Booked Electronically Down 10% from the First Quarter of 2001, Revenue Off 18% / eMonitor / June 2002
Worldwide Hotel Room Nights Booked Electronically Through the Global Distribution Systems Down 12% Versus 4th Qtr Last Year / eMonitor / Feb 2002


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

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