Hotel Online  Special Report
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Major Hotel Chains Report 6.9 Percent Increase
In Electronic Bookings for Q1 2007
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TravelCLICK’s eTRAK Reports Double-Digit Internet Increases, Steady GDS Bookings
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CHICAGO (August 2, 2007) — The hotel industry maintains steady growth as consumers continue an upward trend of shopping for hotels online and booking electronically, according to TravelCLICK’s 2007 first quarter eTRAK results, released today. The data shows the total Central Reservation System (CRS) reservations for major hotel brands increased 6.9 percent in Q1 2007, reaching more than 21 million bookings.

The Internet contributed 41.2 percent, or 8,796,245 reservations, of the total CRS reservations at major hotel brands, a 21.9 percent increase compared to the same period in 2006. The data also highlights the low growth, but continuing importance of GDS e-commerce, with 35.7 percent of total electronic CRS reservations. Voice reservations represent the remaining 23.1 percent of CRS reservations, posting a decline of 4.8 percent over the same period last year.

In the first quarter of 2007, brand websites grew again and continued to gain share compared to third-party merchant and opaque websites, which remain an important component of hotels’ online strategy to ensure visibility to a global consumer audience. According to eTRAK, brand websites were the source of 82.3 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 CRS performance. The consolidated results provide industry indications based on performance trends for 28 major hotel brands and chains.

Observations for the market based on this latest data include:

  • Electronic bookings show no signs of slowing down, making an actionable electronic distribution strategy a crucial part of any hotel’s business plan for growth.
  • Hotel websites have become the center of the industry’s sales and marketing efforts. As consumer choice continues to broaden, hotel companies are increasing their focus on Web-direct bookings to ensure the consumer sees Web-direct as a viable option.
  • The voice channel is benefiting from synergies with the Web, as call volume continues to decrease while conversion rates increase due to more educated customers.
“Hotels are getting better at ensuring that rate parity exists and that the hotel’s website lives up to its best rate guarantee,” said Jeff Bzdawka, Chief Operating Officer at TravelCLICK. “In conjunction with more aggressive Internet marketing, the industry also continues to drive business direct, increasing overall profitability.”

Reservation Sources for Major Hotel Brands
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CRS Bookings
Share of CRS Reservations
Q1 2007
Share of CRS Reservations 
Q1 2006
Internet
  Brand Website1
  Third Party (Retail2, Merchant3 & Opaque4)
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33.9%
7.3%
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29.7%
6.5%
GDS Travel Agent
35.7%
37.9%
Total Electronic
76.9%
74.1%
Voice
23.1%
25.9%
Total for CRSs
100%
100%
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Reservation Source Growth Rates
 
CRS Bookings
Percent Growth/Decline of Reservations
Q1 2006 to Q1 2007
Internet
  Brand Website1
  Third Party (Retail2, Merchant3 & Opaque4)
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22.2%
20.6%
GDS Travel Agent
0.6%
Total Electronic
11.0%
Voice
-4.8%
Total for CRSs
6.9%
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The eTRAK report covers all Central Reservation System 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 28 major brands. The conclusions, however, are directional for the industry as a whole.

About TravelCLICK
TravelCLICK (www.travelclick.net) is the leading provider of emarketing solutions that help hotels sell rooms smarter and 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. Serving the hospitality industry since 1996 and headquartered in the Chicago area, TravelCLICK has more than 12,000 customers in 140 countries.


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

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). 

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 
410.257.9154 
kpandrews@travelclick.net
 

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Also See: TravelCLICK Selected by Voyages Hotels & Resorts For Reservations and Internet Distribution Solutions; Australian Hotel Company Implements iHotelier CRS, ChannelDirect at Select Properties / July 2007
TravelCLICK's iStay Web Booking Engine Delivers On Key Online Metrics for Hoteliers; Drives 15 Percent Higher ADR and 14 Percent Higher Website Reservation Conversion Rates / June 2007
Trump Entertainment Resorts Selects TravelCLICK for Total Property Merchandising Solution; Robust Technology Complements Property Upgrades at World-Famous Casino Hotels / June 2007
New Online Competitive Intelligence Tool Enables Hotels to See Themselves as Consumers Do; TravelCLICK Expands Suite of Market Intelligence to Include Online Presence Tracking / June 2007
TravelCLICK Acquires Blue Square Studios, Bringing Groundbreaking Internet Marketing Technology to Hotels; Creates Industry's Leading Web Presence Management and Merchandising Platform / June 2007
TravelCLICK Ranks #33 On Crain’s Fast Fifty List For Chicago Area / June 2007
Award-Winning Arizona Inn Selects TravelCLICK for Comprehensive Suite of Property Merchandising Solutions; Luxury Resort Implements iHotelier CRS, Market Intelligence and Digital Marketing Services / May 2007
Shula's Hotel Scores with Switch to TravelCLICK For Comprehensive Property Merchandising Solution; Florida Property Using iHotelier CRS, Market Intelligence, Travel Agent Media / May 2007
Worldwide Electronic Hotel Revenue Up 19.3 Percent in Q4 2006; TravelCLICK’s eMonitor Reports Annual Growth for Room Nights at 8.4 Percent, ADR at 7.4 Percent / April 2007
Major Chains Report Hotel Bookings Up More Than 8 Percent in 2006; TravelCLICK’s eTRAK Reports Double-Digit Internet Increases and Steady GDS Growth / April 2007
TravelCLICK Selected by Dover Downs Hotel & Casino For Complete Property Merchandising Solution / April 2007
TravelCLICK's iStay Booking Engine Again Named Best Web Interactive Application for Hotel and Lodging Industry; Innovative Merchandising Platform Wins Prestigious Web Marketing Association Award / March 2007
TravelCLICK Selected by Exel Inns of America For Comprehensive Central Reservation System Solution; Regional Chain Switches to iHotelier CRS at 22 Properties Across Six States / March 2007
TravelCLICK Introduces First Graphical Ads Influencing Travel Agents at GDS Point of Sale; Graphical PromoSpots Combine Powerful, Targeted GDS Search With Rich Graphical Content to Drive Higher GDS Conversion, Increase Agent Bookings / March 2007
TravelCLICK Selected by Austria Hotels International For GDS Connectivity, Market Intelligence; Boutique Hotel Group Grows Share Using iHotelier CRS, Rate Shopping, Travel Agent Advertising / March 2007
The Bowery Hotel in New York Selects TravelCLICK For Robust Central Reservations Solution; BD Hotels' Newest Property Implements iHotelier CRS to Build Brand Identity Online, Drive Reservations / February 2007
Innisbrook Resort and Golf Club Drops Brand Flag, Creates Own Brand with TravelCLICK; Premier Florida Destination Resort Selects iHotelier CRS for Website, GDS Connectivity / February 2007
TravelCLICK Converts Mobil Five-Star, AAA Five Diamond Woodlands Resort & Inn to iHotelier CRS; Premier Luxury Hotel Selects TravelCLICK to Build Brand Identity and Drive Reservations / January 2007
Hotel Pennsylvania Named 2006 eMarketer of the Year by TravelCLICK and HSMAI; New York City Landmark Hotel Recognized at 50th Annual Adrian Awards Gala / January 2007
TravelCLICK Selected by Colonial Williamsburg For Integrated Distribution and Marketing Solution; World's Largest Living Museum Implements iHotelier CRS, Market Intelligence / January 2007
More Hotels Switch to iHotelier by TravelCLICK For Reliability and Brand-Building Capability; Award-Winning Merchandising Capabilities and Ease of Migration Also Cited by Customers / January 2007
Spain-Based Núñez i Navarro Hotels Builds Brand Identity With iHotelier CRS by TravelCLICK; Innovative Operator Uses Flash-Based Web Booking Engine for Nine Barcelona Properties / December 2006
Worldwide Electronic Hotel Revenue Up 14.7 Percent in Q3 2006; TravelCLICK eMonitor Shows Increases in Both ADR and Room Nights Booked / December 2006
TravelCLICK Helps Move Broughton Hospitality Group Ahead of the Competition; Boutique Hospitality Management Company Uses iHotelier CRS, Market Intelligence To Build Brand Value Across Properties / December 2006
Major Chains Report Continued Double-Digit Internet Growth With 25 Percent Increase in Q3; GDS Continues Steady Source of CRO Bookings at 35 Percent / December 2006
Sacher Hotels to Build Brand with Integrated Distribution and Marketing from TravelCLICK; World-Famous Austrian Hotels Leave Major Representation Firm to Create Own Identity With the iHotelier Solution / November 2006
TravelCLICK Continues Global Expansion, Opens Regional Office in United Arab Emirates; New Dubai Location Will Serve Growing / November 2006
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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