HOTELMARKETING.COM

Online travel counts for largest hotel ADR increase in ‘06

March 01, 2007 | Hospitality Industry

A new report finds that average hotel room rates booked online increased 8.7 percent compared with a 6.8 percent estimated overall hotel room rate increase for US hotels in 2006. The largest percentage increase in the number of reservations among all distribution channels was for branded websites.

Based on PricewaterhouseCoopers, Smith Travel Research, TravelClick, and PhoCusWright research and data, PricewaterhouseCoopers finds that average hotel room rates booked online increased 8.7 percent compared with a 6.8 percent estimated overall hotel room rate increase for US hotels in 2006.

The largest increase among online bookings, 8.9 percent, was for the “opaque” distribution channel, those third-party sources represented by online reservations that do not reveal the identity of a hotel until a reservation has been placed.

The largest percentage increase in the number of reservations among all distribution channels was for branded Web sites, those operated by hotel brands.

“This is a dramatic change from just a few years ago when third- party Web sites and distribution channels led the growth in hotel reservations and negotiated with hotel owners and operators from a strong position,” says Bjorn Hanson, principal in the PricewaterhouseCoopers Hospitality & Leisure practice. “Increased hotel occupancy, generally excellent hotel-branded Web sites, price guarantees, the launch of new hotel brands and enhanced loyalty programs have been extremely effective in enabling brands to regain control of distribution,” he adds.

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