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Study Finds that More Travel Agents are Using GDS and Booking Promotional Rates And Will Actively Book Away from Hotels Not in Parity

NEW YORK – October 14, 2013 – A recent study of more than 650 agents from 34 countries found that travel agents are using Global Distribution Systems (GDS) more than ever before. 

The 2013 Bi-Annual Global travel agent GDS Study, conducted by market research firm Phoenix Marketing International in partnership with TravelClick, surveyed travel agents worldwide that use Amadeus, Galileo, Sabre and Worldspan. 

The GDS is one of only two channels that travel agents are using more than in the past, with the percentage of agents increasing their usage of the GDS up an impressive 14 percent from 2011. The only other channel that experienced growth was hotel/chain websites, which increased 3 percent. Travel agent usage of all other channels (including other agent booking tools, telephone to hotel/CRO, travel mega-sites, general hotel directories and direct mail/fax) shrank significantly in the past two years, decreasing 21 percent. 

“The GDS is more popular with travel agents than ever. This year the GDS is on pace to produce 58 million hotel reservations, up 5 million from 2011,” said Jason Ewell, Executive Vice President, business intelligence, media and web solutions for TravelClick. “As key influencers in booking decisions, hotels need to merchandise themselves to travel agents at the point of sale through the GDS.” 

Nearly two thirds of agents will actively book away from a hotel not in full rate party within the GDS 

Rate parity emerged as a critical issue for travel agents. Of those surveyed, 81 percent stated it is very important that the GDS offer rate parity. Nearly two-thirds (62 percent) stated that they would book away from hotel properties that do not offer full rate parity within the GDS. 

“With more agents using the GDS, there is an increased emphasis on ensuring rate parity so that agents can maintain credibility with their clients. There is nothing worse for an agent than offering a rate to clients only to learn that they could find a better rate by themselves on a different channel,” said Mr. Ewell. 

Travel agents affirm that rate, whether negotiated or not, is the critical factor at determining their booking decision  

The study highlighted travel agents’ desire to provide value and build loyalty with their clients by booking promotional rates and best available rates as opposed to just relying on negotiated rates: 

  • Nearly 60 percent of travel agents surveyed said that they will book a hotel room based on best available or promotional message over any other factor.  
  • The number of travel agents offering their clients alternatives to negotiated rates increased 21 percent from 2011 to 2013. 

In addition, 53 percent indicated that a promotional message steered them to book one negotiated rate over another negotiated rate.  

“Negotiated rates aren’t the only option for travel agents using a GDS. Travel agents put a premium on booking the best available rate for clients and promotional messaging help agents find the best rate whether negotiated or not. Agents affirmed that promotional messages from GDS Advertising influence bookings,” said Mr. Ewell.  

Amenities are still driving travel agent behavior  

Beyond providing competitive pricing, travel agents also indicated that amenities were critical in making a booking decision. The most popular amenities were free Internet and free breakfast (both at 79 percent).   

“To generate bookings from travel agents, hotels need to go beyond just offering a good rate by providing value-added amenities. This was one area that emerged as more important than when the study was conducted in the past, as travel agents continue to focus on building customer loyalty by providing value that their clients can’t find elsewhere,” Mr. Ewell concluded.    

For more information about TravelClick’s GDS media, join us for an informational webinar on October 17th at 10:00 AM EDT or 9:00 PM EDT.  

GDS Survey Press Release_Final.pdf

About TravelClick

TravelClick (TravelClick.com) provides innovative cloud-based solutions for hotels around the globe to grow their revenue reduce costs and improve performance. TravelClick offers hotels world-class reservation solutions, business intelligence products and comprehensive media and marketing solutions to help hotels grow their business. With local experts around the globe, we help more than 36,000 hotel clients in over 160 countries drive profitable room reservations through better revenue management decisions, proven reservation technology and innovative marketing. Since 1999, TravelClick has helped hotels leverage the web to effectively navigate the complex global distribution landscape. TravelClick has offices in New York, Atlanta, Philadelphia, Chicago, Barcelona, Dubai, Hong Kong, Houston, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on twitter.com/TravelClick and facebook.com/TravelClick.

Contact: Danielle DeVoren/ Taylor, McGrann KCSA Strategic Communications

ddevoren@kcsa.com / tmcgrann@kcsa.com / 212.896.1272 / 212.896.1253

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