Hotels Use Websites To Grow Business
Summary:
- Share of hotel room sales made via a website has increased 7% from Q4 2010 to Q4 2011
- Online bookings have risen across the board across online travel agents, hotel’s own websites, 3rd party resellers etc.
- Reduced cost-per-sale online is an attractive proposition, but we need to cater for all target audiences – eg. some people just prefer picking up the phone to book a room
Hotel websites are increasing share of bookings in every quarter of 2011 among both business and leisure travelers, according to TravelClick.
Room nights booked through hotel websites grew 6.8% in the fourth quarter compared to the same time in 2010, according to data from the Fourth Quarter 2011 TravelClick North American Distribution Review (NADR), which aggregates hotel bookings by channel for the transient travel segment (individual leisure and business travelers).
Other distribution channels, such as online travel agencies like Expedia and Hotels.com as well as global distribution systems used by travel agents, also grew, but not as much. Online travel agencies grew 5.7% while global distribution systems grew 2.8%.
Overall in the transient segment, online travel agencies accounted for 11.4% of all hotel rooms booked for the fourth quarter; global distribution systems accounted for 19.3%; hotel websites (brand.com) accounted for 26.5%; direct bookings accounted for 25.0%; and voice, or 1-800 numbers, accounted for 16.7%.
"While a hotel's website continues to drive more and more bookings for hotels, it is important to recognize that different channels cater to different types of customers, and having an appropriately diversified and optimal mix will drive improved revenue and profit outcomes," said Tim Hart, executive vice president, enterprise services for TravelClick, in a release.
During the 2011 calendar year, average daily rates for the transient segment increased across all channels, up 3.8% compared to 2010, with rates for the OTA channel growing 9.8% and hotel websites up 3.5%. For the fourth quarter specifically, ADR in the transient segment increased across all channels, up 3.7%, with rates for the OTA channel growing 9.3% and Brand.com up 2.5% compared to 2010.
The TravelClick North American Distribution Review is a quarterly report that focuses on demand performance of booking channels, segments of hotels and loyalty programs. The report is based on reservation and committed group sales data by hotel companies participating in TravelClick's MarketVision Demand Position product. The data is collected in 25 major North American markets, representing 202 million annual room nights and $27 billion in annual room revenue.