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Consumers prefer booking hotels online

March 14, 2005 |

When it comes to getting a hotel room, travelers are doing most of their reservations on line, according to a new report from Keynote Systems, Inc.

When it comes to getting a hotel room, travelers are doing most of their reservations on line, according to a new report from Keynote Systems, Inc.

The San Mateo-based Internet commerce measurement company says there's steady growth in the number of consumers stating they use the Internet to book lodging accommodations as compared to those using other methods, such as calling hotel reservation lines or calling a travel agent. More than two-thirds (67 percent) of consumers participating in the study reported that they are likely to book on a hotel Web site as compared to just 57 percent who are open to using a phone reservation system. Just 16 percent report a willingness to use a travel agent.

"We've seen a continual increase in consumer comfort and use of the Internet for booking travel arrangements, but this is the first time we have seen all the online options for booking beating the off-line options," says Bonny Brown, director of research and public services for Keynote (NASDAQ: KEYN). "We have come to a point where consumers with Internet access are now more likely to book online as compared to using the phone."

In 2003, Keynote research showed consumers as increasingly comfortable with phone reservation systems, with nearly two-thirds (63 percent) reporting that as a typical method for booking, as compared to just 50 percent reporting willingness to use an online agency site and 59 percent willing to use a hotel Web site. In January 2004, Keynote research revealed that consumers preferred certain hotel sites to phone methods for booking, but preferred phone service over booking on third-party or agency sites. In its latest study, Keynote's annual benchmarking revealed that consumers now prefer all online booking methods over off-line alternatives.

The company says its conclusions are based on its research with 2,000 customers as they evaluated and interacted with 10 travel and lodging Web sites. The Expedia, Hilton, Hotels.com, Hyatt, Lodging.com, Marriott, Orbitz, Sheraton, Travelocity, and Wyndham Web sites were evaluated as part of the study, according to Keynote.

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