Branded Websites Lose Ground With Hotel Shoppers
Author: PhoCusWright Inc.
Published: December 16, 2010
The economic downturn has erased prerecession gains for hotel branded websites, as market pressures increase reliance on online travel agencies (OTAs). With occupancy still below 2007 levels and sluggish ADR growth, OTAs will grow at twice the rate of hotel websites in 2010.
Hotels took control of margins and vastly improved their branded website strategies to secure an online channel share of 59% in 2008. As the recession hit, value-conscious consumers flocked to the mass-market OTA channel. The result: supplier website share of hotel bookings is expected to shrink to 54% in 2010. OTAs and hotel websites will settle into similar growth patterns in 2011 and 2012 as hotels gain more control over OTA inventory.
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For a deeper understanding of the U.S. travel market, purchase the comprehensive report, PhoCusWright's U.S. Online Travel Overview Tenth Edition. The report provides market sizing and forecasting through 2012 for all major travel segments (airlines, hotels, car rental, vacation packaging, cruise and rail) and key online and offline distribution channels (online travel agencies, supplier websites, and traditional travel agencies/offline supplier direct).