Hotel Online  Special Report

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Report on Electronic Bookings for Worldwide Hotel
Industry Shows Luxury Segment Leads the
Way to Hotel Recovery in Q2 
TravelCLICK eMonitor
Chicago (August 20, 2002)—TravelCLICK’s eMonitor results for the second quarter of 2002 show that while worldwide hotel room nights and revenue booked electronically through the Global Distribution Systems (GDSs) decreased versus the same period last year, booking activity was much improved over the first quarter.

The number of room nights booked electronically was down 3.2% from the second quarter of 2001; revenue was off 8% and average rate dropped 4.9%. Although these year-over-year numbers show a decrease, hotels made a significant improvement in second quarter, as compared to first quarter this year, which had an 18% decline in revenue as compared to first quarter 2001.

Electronic room nights year-to-date through the second quarter have decreased by 6.4% from the same time period last year, while revenue is down 13% due to a 6.9% ADR decline. Average length of stay for the 2002 year-to-date period was 2.12 nights, down slightly from last year’s 2.14 nights.

eMonitor results are compiled from TravelCLICK's comprehensive database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre, and Worldspan GDSs. TravelCLICK's data also includes consumer online GDS hotel bookings made through major Internet travel sites, such as Travelocity, Priceline and Expedia.

Travel Agent Component

Travel agent bookings remained the dominant source of hotel e-business, representing 94% of total GDS room nights. The travel agent component of GDS declined 3.5% in room nights and 4.9% in ADR compared to the second quarter of 2001. On a year-to-date basis, travel agent room nights were off 6.9% from 2001, and average rate was also down 6.7.

Internet Component

Internet (consumer online) room nights, excluding bookings from auction sites, displayed growth at 1.6% above the second quarter of 2001. However, average rate was down for GDS powered Internet bookings by 7.8% compared to the second quarter of last year. The ADR of Internet bookings was 22% lower than the ADR for travel agent bookings through the GDS.

Despite the relatively soft first half of the year in the hotel industry, the Internet component displayed a 5% growth in room nights over the first six months. Average rate was down by 9%, which led to a 4% decline in revenue for 2002 year-to-date through the second quarter.
 

Second Quarter, 2002
 
Room Nights
% Growth
ADR
% Growth
Total GDS Hotel e-Commerce
25,819,260
-3.2%
$118.04
-4.9%
Travel Agent Component
24,381,886
-3.5%
$119.48
-4.7%
Consumer Internet Component
1,437,374
1.6%
$ 93.76
-7.8%
2002 Year-to-Date
 
Room Nights
% Growth
ADR
% Growth
Total GDS Hotel e-Commerce
49,516,762
-6.4%
$117.07
-6.9%
Travel Agent Component
46,904,304
-6.9%
$118.36
-6.7%
Consumer Internet Component
2,612,458
5.0%
$ 93.88
-9.0%

"Travel agent electronic hotel bookings are now down only slightly compared to last year, but the ADR for these booking remain significantly higher than consumer online bookings," said Bruce W. Mainzer, senior vice president of marketing for TravelCLICK. "GDS powered Internet bookings increased, but we know that stronger growth has recently been reported in other consumer online venues like net rate (wholesaler) sites and brand/chain sites."

Performance by Market Segment

Results for the second quarter by industry market segment are shown below. The luxury category posted an increase in room nights over the second quarter of 2001, while all other market segments experienced a decline. Luxury’s revenue also increased, rising 3% over last year. The upscale and economy categories were down the most on a revenue basis, with revenues down from the second quarter of last year by 11%. Revenue was off 8% for the mid-scale segment.

Second Quarter 2002
 

Market Segment
Room Nights
% Growth
ADR
% Growth
Luxury
577,901
5.3%
$281.47
-2.5%
Upscale
9,127,416
-2.9%
$142.77
-7.8%
Mid-scale
9,897,051
-4.0%
$93.64
-3.6%
Economy
2,070,926
-5.8%
$65.04
-5.9%

Top Destination Markets

The top five worldwide destination markets for total GDS room nights during the second quarter were:
 
 

Market
Room Nights
% Growth
ADR
% Growth
New York
1,285,889
-5.5%
$190.21
-9.0%
Los Angeles
939,206
-4.0%
$122.31
-5.3%
SF/San Jose/Oak
922,018
-9.5%
$144.52
-16.1%
Wash., D.C./Baltimore
903,661
-7.2%
$139.71
-5.0%
Chicago
811,387
-4.8%
$129.09
-9.6%

To receive a free listing of second quarter results by top 50 cities worldwide in electronic bookings, please e-mail emonitor@travelclick.net.

About TravelCLICK 
TravelCLICK (www.travelclick.net) is the leading provider of solutions that help hotels and other travel industry suppliers improve revenue from electronic distribution channels. TravelCLICK's exclusive electronic marketing networks allow hotels and other travel related suppliers to target promotional messages to specific travel agents, consumers, and group meeting planners when they are booking travel. The company's competitive benchmarking reports provide hotels with price and booking performance information unavailable through any other source. Established in 1996 and headquartered in the Chicago area, TravelCLICK operates in more than 140 countries around the world. The company has over 6,000 clients, including national and international companies such as Accor, Air France, Avis, Best Western International, British Airways, Choice Hotels, Fairmont Hotels & Resorts, Four Seasons Hotels & Resorts, Grupo Posadas, Hilton Hotels Corporation, Hyatt Hotels & Resorts, Kempinski Hotels & Resorts, Leading Hotels of the World, Loews Hotels, Lufthansa, Marriott International, The Peninsula Group, Radisson, The Ritz-Carlton Hotel Company, SAS, The Savoy Group, Shangri-La Hotels, Sol Melia, Starwood Hotels & Resorts, Thistle Hotels, USAirways, Virgin Atlantic and Wyndham Hotels & Resorts.


 
Contact:
Kristina Paider
TravelCLICK
847/585-5238
kpaider@travelclick.net


 
Also See: Room Nights Booked Electronically Down 10% from the First Quarter of 2001, Revenue Off 18% / eMonitor / June 2002
Worldwide Hotel Room Nights Booked Electronically Through the Global Distribution Systems Down 12% Versus 4th Qtr Last Year / eMonitor / Feb 2002


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