30 June 2007

TravelClick 2006 Stats show wide variance in Hotel Yield by Channel

Sorry folks i have had this one to write for some time now. Finally getting round to it.

The TravelClick 2006 stats show a huge discrepancy between bookings made via GDS backed web sites and those via GDS/Travel Agencies. For 2006 the number is 41%. This variance has existed for some time. For example in 2004 the ADR difference was a similar 26%. In order to understand the difference you have to consider the source. We consider the TravelClick numbers to be skewed due to the source of the tracking and the lack of broad reach of the numbers. Its based on GDS based sales. Thus there is always a higher skew of bookings from Travel Agents as is clear. Since this occurs the comparison is fair but it is like comparing apples from the same tree rather than between trees or even different varieties.

Formally they are issuing a caution that this discrepancy is unsustainable. DUH!!!! The web is about transparency. The next gen hotel systems currently being designed (such as 2nd Travel and Pegasus GuestClick) will remove much of the need for a discrepancy.

Here is the full PR release but you can get it off the TravelClick website


PR Release Follows:

Press Releases
Worldwide Electronic Hotel Revenue Up 19.3 Percent in Q4 2006
TravelCLICK's eMonitor Reports Annual Growth for Room Nights at 8.4 Percent, ADR at 7.4 Percent
CHICAGO, April 25 /PRNewswire/ -- TravelCLICK's quarterly eMonitor results indicate continued robust health for the hotel industry based on electronic distribution performance for the fourth quarter of 2006. The data shows that worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites increased 19.3 percent over the fourth quarter of 2005. The number of electronic room nights booked for the fourth quarter increased 7.7 percent over the same time last year, while the Average Daily Rate (ADR) increased by 10.8 percent. The average length of stay for the fourth quarter 2006 was 2.06 nights, nearly the same as last year.
eMonitor results are compiled from TravelCLICK's comprehensive proprietary database, which is the exclusive source of hotel industry electronic distribution data from the Amadeus, Galileo, Sabre and Worldspan GDS. The database of electronic distribution performance provides a comprehensive foundation for data analysis and trend forecasting that is used by the global hospitality industry in the development of integrated distribution strategy.
Observations for the market based on this latest data include:

-- Hotel bookings through the GDS continue steady sustainable growth on a
large base of more than 50MM.
-- In 2006, ADR for room nights booked through travel agents was
41 percent higher than ADR booked through consumer Internet.
-- In nearly every segment and top destination market, ADR continues its
strong year-over-year growth.
"Within the GDS, there is a sustainable trend of much higher ADR business opportunity when compared to other online distribution channels," said John Hach, Vice President of eMarketing Products at TravelCLICK. "The ADR variance of 41 percent provides compelling evidence regarding the need for hoteliers to reach travel agents during their primary point of customer interaction."
Travel Agent Component
Travel agent bookings represented 79.3 percent of total room nights. The travel agent component of GDS bookings had an 11.5 percent increase in ADR and an 18.5 percent increase in revenue versus the fourth quarter of 2005. Travel agents also continued to be a key source of higher rate business for hotels. The average rate for room nights booked through travel agents for the fourth quarter of 2006 was 43.6 percent higher than the average rate for room nights booked via the Internet for the same period last year.
Year-to-date for 2006, travel agent hotel room nights via the GDS were up 6.3 percent, driving an 8.4 percent growth in ADR from the same period in 2005.
Internet Component
Internet room nights, sourced from consumer online transactions on third-party websites powered by the GDS and Online Distribution Database (ODD), showed a gain of 13.6 percent compared to the fourth quarter of 2005. ADR was up 9.2 percent for Internet bookings; revenue was up 24.1 percent compared to the same period last year.
Fourth Quarter 2006

Room Nights %Change ADR %Change
Total GDS and ODD Hotel eCommerce 31,786,682 7.7% $149.52 10.8%
Travel Agent Component 25,200,589 6.3% $159.56 11.5%
Consumer Internet Component 6,586,093 13.6% $111.08 9.2%

Year-to-Date 2006

Room Nights %Change ADR %Change
Total GDS and ODD Hotel eCommerce 131,127,784 8.4% $142.83 7.4%
Travel Agent Component 103,468,230 6.3% $152.17 8.4%
Consumer Internet Component 27,659,554 17.2% $107.89 5.5%

GDS Performance by Market Segment
Results for the fourth quarter of 2006 by market segment are shown below for GDS bookings only. All market segments showed increases in both room nights and ADR compared to the fourth quarter of 2005.
Fourth Quarter 2006

Market Segment Room Nights %Change ADR %Change
Luxury 927,508 13.6% $363.66 12.4%
Upscale 9,887,664 4.2% $191.08 11.1%
Mid-Scale 11,160,152 6.1% $121.67 11.9%
Economy 2,135,983 6.9% $81.51 8.9%

Year-to-Date 2006

Market Segment Room Nights %Change ADR %Change
Luxury 3,636,512 12.2% $345.94 8.6%
Upscale 40,244,398 2.4% $181.79 8.6%
Mid-Scale 46,615,608 5.2% $117.94 8.9%
Economy 9,453,732 7.8% $81.46 7.9%

Top Destination Markets
The top 10 worldwide destination markets in room nights for GDS and ODD-powered third-party websites, in order, were:
Fourth Quarter 2006

Top Destination Markets Room Nights %Change ADR %Change
New York 1,481,273 6.3% $299.00 10.2%
London 1,471,575 27.7% $213.04 12.5%
Los Angeles 1,015,225 4.2% $149.49 9.5%
San Francisco/Oakland/San Jose 941,533 7.7% $154.34 9.0%
Washington/Baltimore 870,787 -1.0% $177.92 7.6%
Chicago 804,459 6.5% $164.28 11.7%
Dallas 558,285 0.4% $119.26 10.1%
Atlanta 495,656 -1.7% $122.27 6.7%
Boston 465,155 3.3% $168.68 8.4%
Houston 437,893 4.0% $124.37 7.4%
To receive a free listing of fourth quarter results by top 50 cities worldwide in electronic bookings, please email emonitor@travelclick.net. GDS hotel booking summaries by individual local market also are available at http://www.travelclick.net/.
Sign up to receive TravelCLICK news by email or through RSS distribution at http://travelclick.mediaroom.com/.
About TravelCLICK
TravelCLICK (http://www.travelclick.net/) is the leading provider of hotel business process management (BPM) solutions that drive long-term profitability. TravelCLICK helps hotels maximize asset ROI by combining innovative market analysis and proven industry best practices with advanced technology to develop and implement high-return strategies. The company offers a full set of solutions including reservations and distribution management, market intelligence-based decision support, and marketing services. Serving the hospitality industry since 1996 and headquartered in the Chicago area, TravelCLICK has more than 12,000 customers in 140 countries.

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