| 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.�
.
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
|
.
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%
|
.
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%
|
.
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 [email protected].
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.
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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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