Hotel Online  Special Report
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Major Chains Report Continued Double-Digit Internet
Growth With 25 Percent Increase in Q3
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GDS Continues Steady Source of CRO Bookings at 35 Percent
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CHICAGO (Dec. 1, 2006) — Consumers continue an upward trend of shopping for hotels online and booking electronically, according to TravelCLICK’s consolidated third quarter eTRAK results, released today. The data shows the Internet contributed 40.0 percent, or 8,581,936 reservations, of the total Central Reservation Office (CRO) reservations at major hotel brands, a 24.8 percent increase compared to the same period in 2005.

The data also highlights the continuing importance of Global Distribution System (GDS) e-commerce with 34.7 percent, or 7,419,408 bookings, of CRO reservations coming through those channels. This is the second quarter that Internet reservations surpassed GDS reservations, or bookings made through the travel agent-focused Global Distribution System (GDS). The eTRAK report shows that voice represents the remaining 25.3 percent of CRO reservations, down 2.8 percent over the same time last year.

In the third quarter of 2006, brand websites grew again and continued to gain share compared to third-party merchant and opaque websites, which are increasingly used for hotel rate shopping prior to consumers booking direct on hotel websites. According to eTRAK, brand websites were the source of 81.2 percent of the brands’ centrally booked Internet reservations.

eTRAK is a quarterly benchmarking report that enables individual hotels to track booking trends on the Internet and GDS through Central Reservations Office (CRO) performance. The consolidated results provide industry indications based on performance trends for 21 major hotel brands and chains.

Observations for the market based on this latest data include:

  • Reservations through the CRO will continue to increase over the next several years, powered by a continued centralization of the distribution and revenue management functions.
  • The voice channel will become much more profitable. Call volume will continue to decline; however, consumers will be more informed from shopping the Internet, leading to an increased conversion rate.
  • The GDS will continue to outperform expectations as this channel begins aggressively pursuing programs that build travel agent confidence, such as the ‘Best Available Rate’ programs recently introduced by some of the major GDS channels.
“A balanced approach will win the game,” said TravelCLICK Senior Vice President of Product Management Scott Farrell. “Although channel shifts will continue to occur, hotels will lose business if they don’t take advantage of the full distribution mix, including both high-growth and mature channels. Consumers will continue to shop multiple sources, and hotels must be prepared to convert business wherever it occurs.”
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Reservation Sources for Major Hotel Brands: 
Third Quarter 2006 
CRO Hotel Bookings
Share of CRO
Reservations Q2 2006
Share of CRO
Reservations Q2 2005 
Share Increase/(Decrease) 2006 over 2005
Internet 
40.0%
35.1%
4.9% points
GDS Travel Agent 
34.7%
36.4%
-1.7% points
Total Electronic
74.7%
71.5%
3.2% points
Voice 
25.3%
28.5%
-3.2%
Total for CROs
100%
100%
N/A
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Internet Source Breakdown for Major Hotel Brands:
Third Quarter 2006 
Internet Bookings
Share of Internet CRO Reservations Q2 2006
Brand Sites 1 81.2%
Retail Sites 2 6.8%
Merchant Sites 3
7.8%
Opaque Sites 4
4.2%
Total Internet
100%
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Reservation Source Growth Rates: 
Third Quarter 2006

CRO Hotel Bookings
Percent Growth/Decline of Reservations 2006 over 2005
Internet
24.8%
GDS Travel Agent
4.0%
Total Electronic
14.2%
Voice
-2.8%
Total for CROs
9.3%
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The eTRAK report covers all Central Reservation Office booking results including Internet, GDS and voice bookings. The report allows subscribers to compare their own performance to that of 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 21 major brands. The conclusions, however, are directional for the industry as a whole.

Sign up to receive TravelCLICK news by email or through RSS distribution at http://travelclick.mediaroom.com/.

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 more than 12,000 customers in 140 countries.


1 Brand Website: Website where distribution is operated and managed by the brand (e.g. www.marriott.com).

2 Retail Website: Third-party distributor where the hotel lists inventory at the same price that it is sold to the consumer and hotel pays distributor agreed upon commission (e.g. HRS, Bookings, Venere in Europe). 

3 Merchant Website: Third-party distributor where the hotel provides inventory to the site at a net rate. The merchant marks up the rate by an agreed upon percentage. The consumer pays the merchant at the gross rate and the merchant site pays the hotel the net rate (e.g. Expedia/Hotels.com, Travelocity and Orbitz).

4 Opaque Website: Third-party distributor that enables customers to chose a fare or rate without knowing the brand of the supplier until after the item is purchased (e.g. Priceline).

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Contact:

TravelCLICK
Katrina Pruitt-Andrews
Director of Marketing
410.257.9154
kpandrews@travelclick.net
 

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TravelCLICK, VFM Interactive Sign Exclusive Agreement; Rich Digital Media Content Management Integrated with iStay Booking Engine Enhances Consumer Experience / October 2006
TravelCLICK and Discover the World Marketing Team To Deliver Enhanced Sales Representation for Hoteliers / October 2006
TravelCLICK Selected by Dedeman Hotels & Resorts International for Central Reservation System Solution / October 2006
The Award-Winning Lodge at Torrey Pines Leaves Major Brand, Selects TravelCLICK to Control Identity and Optimize Distribution / October 2006
Worldwide Electronic Hotel Revenue Up 13.7 Percent in Q2 2006; TravelCLICK eMonitor Indicates Healthy Industry Growth with Rise in Room Nights Booked and ADR / September 2006
Spain-based Silken Hotels Group Renews Distribution Partnership With TravelCLICK / September 2006
Spain-based AC Hotels Renews With TravelCLICK for iHotelier Web Booking Engine / September 2006
TravelCLICK Selected by The Hotel Windsor in Melbourne for Integrated Distribution and Marketing Solution; Total solution - featuring iHotelier advanced central reservations and web booking engine - provides revenue delivery platform / Augusts 2006
Aqua Hotels and Resorts Selects TravelCLICK for Integrated Hotel Distribution and Marketing Solution / July 2006
Boar’s Head Inn Selects TravelCLICK for Web Booking Engine and GDS Connectivity / July 2006
Travelport and TravelCLICK Announce Restructured and Expanded Media and Business Intelligence Partnership / June 2006
TravelCLICK Introduces Powerful New Rate Recommendation Tool, RateADVISOR; Created in partnership with IDeaS, RateADVISOR is the industry's first rate recommendation tool within a rate shopping solution / June 2006
TravelCLICK Introduces iStay Booking Engine to Revolutionize How Hotel Guests Book Online; iStay gives shoppers control of the shopping experience and provides superior merchandising that drives incremental revenue / June 2006
TravelCLICK Announces Next-Generation Hotel Internet Advertising Capabilities; Interactive technology drives qualified demand, maximizing campaign performance through advanced keyword optimization with enhanced direct revenue tracking / June 2006
The West Paces Hotel Group Selects TravelCLICK’s Integrated Distribution Solution Featuring iHotelier Central Reservation System / June 2006
The Kahala Hotel and Resort Seeks the Power of an Integrated Distribution Solution from TravelCLICK; Legendary hideaway island resort selects iHotelier to drive greater web conversion / June 2006
Hampshire Hospitality & Leisure Selects TravelCLICK for Web Booking Engine and GDS Connectivity / May 2006
The House of Blues Hotel Turns to TravelCLICK iHotelier CRS for Fast Implementation and Impressive Results/ May 2006
First Quarter Worldwide Hotel Revenue Up 12.9% from Electronic Channels According to TravelCLICK /May 2006
TravelCLICK Reports Fourth Quarter Worldwide Hotel Revenue from Electronic Channels Up 10.9% / April 2006
TravelCLICK iHotelier Selected by Hotel Arena for Central Reservation System Solution / April 2006
Luxury Resort Achieves Dramatic Results with Integrated Distribution Solution from TravelCLICK; Case Study: Kapalua Villas Increases Website Bookings and Web ADR / April 2006
TravelCLICK iHotelier Selected by CHIP Hospitality for Central Reservation System Solution / April 2006
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

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