30 May 2007

Expedia has largest share by far of online hotels in South Florida

According to Travel Weekly's Travel Technology Newsletter MIAMI-DADE COUNTY QUIETLY NOTIFIED ONLINE TRAVEL COMPANIES in February that it would commence tax audits related to unremitted 6% hotel bed taxes. In March it sent them estimated tax assessments totaling almost $10 million for the past five years.

What is interesting is the market share of each of these players.

If we just use the tax numbers and assume an equal average daily rate then the share of business for hotels in South Florida is quite startling.

Expedia: 60.1%
Travelport: 14.1%
Priceline: 11.1%
Travelocity 8.3%
Others 5.8%

After 5 years activity this represents quite a significant share. However the total numbers are not that great. if we assume about $120 per ADR then it only represents a total of approx 800 rooms per night occupied and sourced by the OTAs' guests in South Florida. Just about enough to fill the Fontainbleu twice over.

So still lots of room for growth.

Now I wonder if the hotels are also feeling the heat from offering some of their stuff online.

Any clues anyone?



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