Online travel agencies are taking market share when it comes to hotel bookings for leisure and business travelers, but hotels' own direct channels still dominate, and travel agencies are still well ahead, too, if the TravelClick numbers are to be believed.
Online travel agencies picked up market share in North American hotel reservations for leisure and business travelers in the first quarter, increasing their bookings 9.2% year over year compared with 6.1% growth for hotels’ own websites, or brand.com.
That’s one of the takeaway’s from the “TravelClick North America Distribution Review, Second Quarter 2014.”
Rounding out the Q1 numbers by channel for individual leisure travelers (not groups) and business travelers (including large managed travel programs), the global distribution system channel (travel agents) increased reservations 2.9%, hotel direct numbers (phone calls directly to the property and walk-ins) declined 0.4%, and phone calls to hotels’ 800 numbers (Central Reservation Office) dipped 0.9%.
The ground gained by online travel agencies during the first quarter isn’t necessarily a terrible thing for hotels, even though the online travel agency channel is an expensive one for the hotel industry. That’s because online travel agencies’ average daily rates (ADR) in Q1 jumped 7.9%, the highest increase among all of the distribution channels, including brand.com.
During the same period, brand.com’s ADR increased just 3.2%.
Overall, when taking all of the distribution channels into account, ADRs in North America increased 3.3% in the first quarter year over year.
When it comes to hotel bookings for leisure travelers alone, much of the discussion revolves around online powerhouses such as Booking.com and Expedia.
According to TravelClick’s numbers, when considering individual leisure travelers and business travelers, the online travel agencies have smallest market share among the channels in North America, even smaller than hotels’ toll-free numbers.
Business travel bookings are captured in the global distribution system channel.
The following chart depicts TravelClick’s market share numbers by channel for actual reservations in Q1.
|Channel||Market Share Q1 2014||YoY Change|
|Direct to Hotel||25.30%||-0.4%|
Subscribe to Skift Pro
Subscribe to Skift Pro to get unlimited access to stories like these ($30/month)Subscribe Now
Photo Credit: Online travel agencies picked up market share in the first quarter of 2014 by increasing their hotel reservations faster than hotels' own websites, according to a TravelClick study. Pictured, a Marriott hotel in Cranberry Township, Pennsylvania. Associated Press
Europe’s Hotels Will Wait Until at Least 2025 for Full Return of International Business Guests
Be wary of everybody’s favorite word at the moment: pent-up demand. Your typical leisure traveler can book a trip and pack their bag in minutes, but companies will keep employees on a tight leash for years to come.
Matthew Parsons, Skift | 6 days ago
CheapOair Is Now Enrolling Flyers in AA Advantage
American Airlines gave CheapOair a vote of confidence in permitting the online travel agency to enroll AA Advantage members. Look for more online travel agencies to establish these types of deals.
Dennis Schaal, Skift | 6 days ago