Thursday, January 9, 2014

eRevMax predicts hotel online distribution trends 2014

As technology advances and the world of social media expands, more and more travelers are turning towards smart phones and tablets to book hotel rooms. eRevMax, the leader in hotel online distribution and channel management solution has released an Infographic “Online Hotel Distribution” to provide hoteliers with upcoming trends backed by relevant data.


Travelers who book hotel rooms online are increasingly equipped with smart phones and tablets. The infographic shows 7% of all bookings were generated from mobile and tablet devices in 2013, and this trend will grow by another 20% this year. In 2014, hotel bookings through mobile will contribute over $26 billion.


The eRevMax study sheds light on how metasearch sites realized a 13% increase in 2013. Google Hotel Finder, TripConnect and Trivago are becoming a driving force in hotel online distribution as 60% of travellers shop by comparing rates on these sites. To shift market share from the OTAs to direct bookings, hoteliers should utilize metasearch sites as a part of their overall distrbution strategy as it offers better search experience and allows the traveller to find the lowest prices available online.

Bookings from OTAs surged ahead with a 12% rise in Q3 2013 and now stands at 13% of overall bookings in North America. It also shows that 33% of all bookings take place at the brand’s website, an increase of 5% in Q3 2013. eRevMax suggests hoteliers work with OTAs to increase revenues and implement reputation management solutions for quick responses to their guests.

Another important tip by the hotel solutions provider is to leverage the billboard effect, defined as the increase in offline bookings of a property when it is listed with an Online Travel Agency (OTA). An experiment conducted by Cornell University observed that one of the participant hotels experienced an impressive 14% increase in direct bookings when it contracted with an OTA. Besides, Average Daily Rate (ADR) increased by 1.5% during OTA listing of the same property. 

In this world of social media, SEO and analytics, failure to adopt digital platforms in their marketing strategy is suicidal for hotels. The data shows that 81% of tech-savvy travellers find user reviews important, while 49% travellers book hotel only after reading reviews. Nearly 21% used Facebook to search for hotel information at least once while 14% of travellers use the Facebook platform to book a hotel room. Hence, it is imperative that hotels take social-commerce seriously. 

To access the full infographic, click Infographic: Online Hotel Distribution 2014
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