HOTELMARKETING.COM

OTAs aim to generate advertising revenue

August 26, 2008 |

It's the height of summer vacation season, but online travel agencies are seeing a reduction in bookings thanks to the weak economy. According to The Washington Post, travel sites try to compensate this trend by generating advertising revenue from window-shoppers while not distracting bookers from actual transactions.

Rising fuel costs and a reduction in the number of flights offered will likely dampen air bookings for these companies during the second half of the year. Fare hikes on major routes and increased surcharges for meals, extra bags and even pillows, may discourage travelers from taking to the skies.

Hotel occupancy rates are also starting to decline, but online travel agencies are showing some benefits as more hotels are using their services to fill rooms. International bookings are also expected to drop slightly during the second half of the year.

But there's an upside for these online travel agencies, which could see growth from advertising revenue as they monetize their traffic. Expedia is a top 25 site worldwide, and Orbitz is within the top 100 most-trafficked sites. "There is significant opportunity to increase growth and profits by monetizing this traffic--particularly lookers that do not book transactions," Wolk wrote in her note.

Get the full story at The Washington Post

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