Hotel Online  Special Report
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Major Hotel Chains Grow Internet Reservations 26.8 Percent in 2005
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Brand Websites Increase Volume of Reservations Over 33 Percent; 
GDS Continues Steady Source of Bookings at Almost 35 Percent of All Channels
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CHICAGO (April 3, 2006) – TravelCLICK today released its 2005 full-year eTRAK results, which indicate that Internet reservations received at the central reservation offices (CROs) of major hotel brands grew 26.8 percent in 2005 compared to the previous year.  

In 2005, brand websites grew again and gained share compared to third-party merchant and opaque websites.  According to eTRAK, brand websites were the source of 75.2 percent of the brands’ centrally booked Internet reservations, compared to 71.4 percent in 2004.  Reservations booked through brand websites climbed 33.4 percent over the 2004 level. 

Bookings through merchant websites, such as Expedia, Orbitz, and Travelocity channels, grew by 34 percent over 2004.  Opaque websites, such as Priceline and Hotwire, decreased by 10.2 percent.  

eTRAK is a quarterly benchmarking report that allows hotel chains to track booking trends on the Internet and GDS.  The full-year 2005 eTRAK report highlights both the growth of electronic hotel bookings on the Internet and the continuing importance of GDS e-commerce for 30 major hotel brands and chains.  eTRAK shows that 34.6 percent of CRO reservations came through GDS channels, while Internet sites contributed 35.2 percent of CRO reservations in 2005.  In total, 61,248,204 bookings were made last year for these brands through the GDS and the Internet -- 30,410,234 GDS bookings and 30,837,970 Internet bookings.

The 30 major brands also reported that, on average, 26.6 percent of their CRO reservations were received from their brand website (marriott.com, hilton.com, etc.) while slightly less than one-third, or 30.2 percent, of CRO reservations were made by phone.

“The market is giving a clear indication that hotels are regaining control of their distribution channels,” commented Robert Post, President and CEO of TravelCLICK.  “While hotels recognize the key role of the GDS and third-party online agencies, they will continue to look for ways to drive business through their proprietary channels.  But due to its highly effective target marketing, we expect the GDS to maintain its 30+ percent share of bookings over the next two years, while voice reservations continue to decline because of the increasing preference of consumers to book electronically.”
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Reservation Sources for Major Hotel Brands:
  2005 Full Year
CRO Hotel Bookings 
Percent of 2005
Reservations
Percent of 2004 Reservations
Percent Change 
2005 over 2004
Brand Websites 
26.6% 
21.4% 
24.5%
Retail Websites 
3.7% 
3.8%
-2.2%
Merchant Websites 
3.1% 
2.2% 
41.9%
Opaque Websites 
1.8% 
2.6% 
-28.9%
Total Internet 
35.2% 
30.0% 
17.8%
GDS Travel Agent 
34.6% 
35.7% 
-3.0%
Total Electronic 
69.8% 
65.6% 
6.5%
Voice 
30.2% 
34.4% 
-12.1%
Total for CROs 
100% 
100% 
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Combined, Expedia and Hotels.com had a 59.5 percent market share of merchant bookings received at the CRO of the major hotel brands.  Travelocity and Orbitz had market shares of 21.8 percent and 10.1 percent, respectively. 

Priceline’s share of opaque bookings at the 30 major hotel brands was 74.5 percent in 2005, while Hotwire’s growth of 17.8 percent year-over-year secured a 25.5 percent share.  
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Sources of Internet Bookings – 
2005 Full Year
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Percent Growth over
Full Year 2004
Share of Internet Bookings 2005 Full Year
Brand Sites
33.4%
75.2%
Retail Sites
5.6%
10.6%
Merchant Sites
34.0%
9.0%
Opaque Sites
-10.2%
5.2%
Total Internet
26.8%
100.0%

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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 compared to 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 etrak@travelclick.net.

Results from this study may differ from overall hospitality industry trends on the Internet and GDS because eTRAK reflects only the performance of 30 major brands.  The conclusions, however, are directional for the industry as a whole. 

About TravelCLICK
TravelCLICK (www.travelclick.net) is the leading provider of hotel business process management (BPM) solutions that drive long-term profitability.  TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies.  The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support, and marketing services.  Established in 1996 and headquartered in the Chicago area, TravelCLICK has over 12,000 customers in more than 140 countries around the world.

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Contact:

TravelCLICK
Katrina Pruitt-Andrews
410.257.9154
kpandrews@travelclick.net
 

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Also See: TravelCLICK Names David Marshall Chief Architect; Industry Veteran to Advance TravelCLICK’s Hotel Revenue Delivery Platform / March 2006
The Ritz London Selects TravelCLICK iHotelier as Its Central Reservations System; Website Booking Revenues Up 44% / March 2006
TravelCLICK Showcases Integrated Distribution Solutions for Hotels at ITB Berlin; International Casinos and European Estates Alike Choose the iHotelier CRS / March 2006
Travelocity and TravelCLICK Collaborate to Provide Data for Rate Shopping Tool / February 2006
Shutters on the Beach and Hotel Casa del Mar Select TravelCLICK’s iHotelier CRS for Enhanced Website Booking Solution; Cutting-Edge Booking Engine Complements Website Branding, Increases Online Revenue and Enhances the Guest Experience for Luxury Independent Hotels / February 2006
Best Western International Partners With TravelCLICK; Hotel Chain Endorses TravelCLICK’s Hotel Solutions including Competitive Intelligence, Travel Agent Media and Preferred Placement Products / February 2006
TravelCLICK Launches International Call Center Supporting iHotelier CRS Customers Worldwide / January 2006
Ireland’s Carton House Selects TravelCLICK for Central Reservation System Solution / January 2006
TravelCLICK’s iHotelier Selected by The Island Hotel Newport Beach for Central Reservation System Solution / December 2005
TravelCLICK Distribution Management Solution Supports Multiple Pricing Layers Across Major Distribution Models / December 2005
Sabre Travel Network and TravelCLICK Launch Enhancement to Hotel Spotlight; New Precision Path Analytical Tool Now Available / November 2005
TravelCLICK Acquires Vantis International Corporation; Vantis Customers Gain a Full Range of Revenue-Building Reservations and Decision-Support Solutions / October 2005
TravelCLICK, Amadeus, Galileo, Sabre and Worldspan Join Efforts to Help Hurricane and Earthquake Victims / October 2005
TravelCLICK Announces Call For Entries for The 2005 E-Marketer of the Year Awards / September 2005
TravelCLICK Names New CFO and CIO / September 2005
BTG-Jianguo Hotels and Resorts Selects TravelCLICK’s iHotelier Central Reservation System / August 2005
Wynn Las Vegas, Chicago Convention and Tourism Bureau Select TravelCLICK’s iHotelier CRS Platform / June 2005
TravelCLICK Names Robert Post as President and Chief Executive Officer / May 2005
Accor North America Hotels Selects TravelCLICK’s ChannelManager / April 2005
Major Hotel Chains Grow Internet Reservations Over 22% in 2004; Brand Websites Increase Volume of Reservations Over 31% / April 2005 
Major Hotel Chains Grew Internet Reservations by 24% 2004 YTD; TravelCLICK Reports eTRAK Results from 30 Leading Brands / January 2005
TravelCLICK Expands Commitment to iHotelier / August 2004

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