Revenue from Electronic Channels Up 10.9%
GDS projected to hit $18 billion in revenue in 2006
|CHICAGO (April 10, 2006) - TravelCLICK's eMonitor results for the fourth
quarter of 2005 show that worldwide electronic hotel revenue from the Global
Distribution Systems (GDS) and key Internet sites combined was up 10.9%.
Electronic room nights year-to-date through the fourth quarter increased by 5.4% from the same time last year, while ADR increased by 5.5% contributing to a revenue growth of 11.2%. The average length of stay for the 2005 year-to-date period was 2.17 nights, slightly higher than last year's 2.11 nights.
“Fourth quarter electronic channel performance continues the positive trend,” said Robert Post, President and CEO for TravelCLICK. “Over the past year, there has become a new found awareness in the hotel community of the need to maintain strong presence within the GDS channel. There are several new marketing and yield management strategies that optimize point of sale presence to travel agents. Hotels taking full advantage of these techniques are experiencing significant increases in travel agent bookings.”
In 2006, TravelCLICK projects a steady single digit growth of the GDS channel coupled with strong growth of the Internet channel, driven by hotel website bookings. According to leading industry consultant PhoCusWright, 2006 will be the year that supplier or brand sites overtake third party sites in terms of percentage of online hotel bookings*.
eMonitor results are compiled from TravelCLICK's comprehensive database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS. TravelCLICK's eMonitor also includes hotel bookings made through third-party travel Internet websites powered by Pegasus Solutions.
Travel Agent Component
Travel agent bookings remained the dominant source of GDS hotel e-business, representing 82.8% of total room nights. The travel agent component of GDS bookings had a 3.7% increase in ADR and a 10.0% increase in revenue versus the fourth quarter of 2004. Travel agents continued to be a key source of higher rate business for hotels. The average rate for room nights booked through travel agents was 35.0% higher than the average rate for room nights booked via the Internet.
For the full year 2005, travel agent hotel room nights via the GDS were up 5.6%, driving a 12.3% revenue growth from the same period in 2004.
TravelCLICK expects the GDS channel will continue its billion-dollar growth in 2006 reaching a new high of $18B in booked revenue. This movement is driven by a nine-month trend of double-digit growth from brick and mortar agencies in addition to the continued upward trend in popularity of major International destinations.
Internet (consumer online) room nights displayed a gain of 12.3% compared to the fourth quarter of 2004. ADR was up 4.4% for Internet bookings; revenue was up 17.3% compared to the same period last year.
Year to date, the Internet component displayed a 4.3% growth in room nights compared to 2004. ADR was up 0.6%, and revenue was up 4.9% over the same period last year.
GDS Performance by Market Segment
Results for the fourth quarter of 2005 by industry market segment are shown below for GDS bookings only. All markets segments had increases in both room nights and ADR compared to the fourth quarter of last year.
Top Destination Markets
The top ten worldwide destination markets in room nights for GDS and
Pegasus third-party powered websites, in order, were:
To receive a free listing of fourth quarter results by top 50 cities worldwide in electronic room nights, please email email@example.com. Up-to-date GDS hotel booking summaries by local market are available at www.travelclick.net.
* Source: PhoCusWright’s Online Travel Overview Fifth Edition, December 2005.
|Also See:||Web Marketing Association Awards TravelCLICK iHotelier Website Booking Engine with 2006 Best Interactive Application for Hotel and Lodging Industry / April 2006|
|Major Hotel Chains Grow Internet Reservations 26.8 Percent in 2005 / March 2006|
|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|