TravelClick Report Shows Brand.Com Is Fastest Growing Channel During Third Quarter 2011
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Data from the Third Quarter 2011 TravelClick North American Distribution Review (NADR) reveals that during Q3 2011, hotel websites, referred to as brand.com, were the fastest growing booking channel, increasing 6.1 percent from last year. One out of four room nights (25 percent market share) are booked through a hotel’s website, a trend that has been increasing during every quarter of 2011. In the third quarter, online travel agencies (OTAs) like Expedia, Priceline and Travelocity accounted for 12 percent of all hotel rooms booked; global distribution system (GDS) bookings used by travel agents accounted for 18 percent; and direct bookings – calling, emailing or walking into a hotel – accounted for 27 percent. “Managing a hotel’s channel mix is always critical, but as we head into 2012 with expectations of continued demand strength and more constrained capacity, it will become even more so. With more customers chasing fewer rooms, it is important to recognize the significant opportunities to optimize channel mix and ensure that maximum revenue is achieved at the lowest distribution cost.” said Tim Hart, executive vice president, business intelligence solutions for TravelClick. According to the NADR, OTA average daily rates (ADR) grew faster, relative to the prior year, than any other means of booking during the third quarter of 2011. The ADR of rooms booked through an OTA increased by 11 percent year-over-year, compared to a 3.4% gain for brand.com. . However, the percentage of bookings on the OTA channel declined. Stronger demand is leading to less discounting, which has a significant effect on the OTA channel, which almost exclusively offers discounted rates. 2011 North America Hotel Industry Channel Contribution (% Share of Room Nights)
* Estimate based on business on-the-books
About TravelClick, Inc.
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Lauren Holmes Danielle DeVoren |