One Quarter of All Hotel Rooms Booked in North America Are Through a Hotel's Website

2012-01-12
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  • TravelClick TravelClick Report Shows Brand.Com Is Fastest Growing Channel During Third Quarter 2011

    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)

     

      

    Channel

      

    Q1 2011

    Q2 2011

    Q3 2011

    Q4 2011 *

    Full Year 2011 *

    Voice (800#)

    16.3%

    16.8%

    17.2%

    18.0%

    16.9%

    GDS

    21.4%

    19.5%

    18.0%

    16.4%

    19.3%

    OTA

    10.1%

    11.7%

    12.4%

    8.8%

    11.2%

    Brand.com (web)

    24.3%

    25.2%

    25.4%

    30.5%

    25.5%

     

    * Estimate based on business on-the-books


    The data was compiled by TravelClick® (www.travelclick.com), the leader in hotel ecommerce and business intelligence solutions.  TravelClick’s business intelligence division provides comprehensive, forward-looking market intelligence to the global travel industry.                                                 

     

    About TravelClick, Inc.
    TravelClick (www.TravelClick.com) is the leading provider of revenue generating solutions for hoteliers across the globe. 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 30,000 hotel clients in over 140 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, Chicago, Barcelona, London, Dubai, Hong Kong, Houston, Melbourne, Orlando, Shanghai, Singapore and Tokyo. Follow us on www.twitter.com/TravelClick and www.facebook.com/TravelClick


    About the North American Distribution Review
    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. TravelClick is the only business intelligence provider that provides comprehensive forward-looking data, based on real bookings, to hoteliers around the globe.

    Lauren Holmes
    404.333.4767
    lholmes@travelclick.com

    Danielle DeVoren
    KCSA Strategic Communications
    212.896.1272
    ddevoren@kcsa.com

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