| CHICAGO (Oct. 26, 2006) � Consumers continue a three-year upward trend
of shopping for hotels online and booking electronically, according to
TravelCLICK�s consolidated second quarter eTRAK results, released today.
The data shows the Internet contributed 37.3 percent, or 7,605,440 reservations,
of the total Central Reservation Office (CRO) reservations at major hotel
brands, a 19.9 percent increase compared to the same period in 2005. The
data also highlights the continuing importance of Global Distribution System
(GDS) e-commerce with 36.4 percent, or 7,425,301 bookings, of CRO reservations
coming through those channels, a 4 percent increase over Q1 2006. This
is the first 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 26.3 percent
of CRO reservations, down 1.2 percent over the same time last year. Phone
reservations continue to lose share as consumers migrate to the web, but
still offer an alternative for the older population demographic and those
with limited or no Internet access.
In the second 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 79.3 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 23 major hotel brands and chains.
Observations for the market based on this latest data from eTRAK include:
-
The mix of reservations through the CRO will continue its recent trend
throughout the next two years. Voice reservations will continue to decline
as consumers choose self-shopping options through the Web or assistance
from travel agents. A more dramatic decline in the voice channel will be
realized in coming years as traditional call-in business, such as group
meetings and conventions, shifts online.
-
Supplier websites will grow to 35 percent of CRO bookings as hoteliers
continue to recognize the value of presenting their identity online and
investing in e-commerce websites that provide a simple yet dynamic shopping
experience.
-
The GDS channel increased more than 250,000 transactions compared to the
previous quarter. Although GDS volume increased 4.8 percent, it fell
slightly as a percentage of overall CRO reservations, overshadowed by the
dominating influence of Internet bookings, which grew 19.9 percent compared
to the same period in 2005. The GDS will continue to grow, but at a slower
rate for at least the next 24 months as this channel represents primarily
steady corporate and business travel.
-
Although voice reservations will decline, hoteliers can expect the voice
channel to increase in profitability as call times decrease and conversion
rates grow due to consumers researching destinations and making buying
decisions online before calling to confirm.
�As hoteliers better understand consumer shopping behavior in this distribution
landscape, they are successfully moving business into the channels that
bring them the highest Average Daily Rate � their own websites and the
GDS,� said TravelCLICK Senior Vice President of Product Management Scott
Farrell. �Intelligent electronic marketing efforts that successfully place
hotels in the buyer�s consideration set during the shopping experience
will allow hoteliers to capture more customer attention and increase conversion
rates.�
Reservation Sources for Major Hotel Brands:
Second Quarter 2006
|
CRO Hotel Bookings
|
Share of CRO
Reservations Q2 2006
|
Share of CRO
Reservations Q2 2005
|
Share Increase/(Decrease) 2006 over 2005
|
| Internet |
37.3%
|
33.6%
|
3.7% points
|
| GDS Travel Agent |
36.4%
|
37.6%
|
-1.2% points
|
|
Total Electronic
|
73.7%
|
71.2%
|
2.5% points
|
| Voice |
26.3%
|
28.8%
|
-2.5%
|
|
Total for CROs
|
100%
|
100%
|
N/A
|
Internet Source Breakdown for Major Hotel Brands:
Second Quarter 2006
|
Internet Bookings
|
Share of Internet CRO Reservations Q2 2006 |
| Brand Sites 1 |
79.3% |
| Retail Sites 2 |
7.2% |
| Merchant Sites 3 |
8.6%
|
| Opaque Sites 4 |
4.9%
|
| Total Internet |
100%
|
Reservation Source Growth Rates:
Second Quarter 2006
|
CRO Hotel Bookings
|
Percent Growth/Decline of Reservations 2006 over 2005
|
| Internet |
19.9%
|
| GDS Travel Agent |
4.8%
|
|
Total Electronic
|
11.9%
|
| Voice |
-1.2%
|
|
Total for CROs
|
8.1%
|
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 23 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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