In the past five years, on line travel sales have grown from US$93 billion to more than US$160 billion, with hotel reservations accounting for almost 40 per cent of total volume.
Compared to that, on line travel agency (OTA) web sites are responsible for one-third of all online hotel bookings.
The 2013 Hotel SCORES syndicate, which measures the impact that hotel Frequent Guest Programs (FGPs) have on hotel usage and loyalty, shows 70 per cent of FGP members are aware of loyalty programs offered by OTAs. But according to David Pluchino, vice president of US-based Phoenix Marketing International, very few (29 per cent) claim membership in an OTA loyalty program. “When we look at who among FGP members carry a membership in OTAprograms, we see that OTA members tend to be most likely from Generation “Y”, prefer economy-tier lodging products, and spend an average of 25 nights a year in hotels. These individuals appear to be less-experienced travellers than most members of hotel FGPs.”
Pluchino believes that there is a place for the OTA web sites and OTA Loyalty Programs in the distribution channels, but hotels should use their own web sites.
“While the consumer may be able to get a room at a property for the same price whether they use an OTA site or a hotel site, it is in the financial interest of the hotel to drive traffic through its own site. It is interesting to note the emergence of Roomkey, a web site developed by a combination of six hotel companies in early 2012. This site offers the traveller the ability to earn points in the hotel FGPs, something the traveller may or may not be able to do when booking through an OTA site.”
In the past five years, on line travel sales have grown from US$93 billion to more than US$160 billion, with hotel reservations accounting for almost 40 per cent of total volume.
Compared to that, on line travel agency (OTA) web sites are responsible for one-third of all online hotel bookings.
The 2013 Hotel SCORES syndicate, which measures the impact that hotel Frequent Guest Programs (FGPs) have on hotel usage and loyalty, shows 70 per cent of FGP members are aware of loyalty programs offered by OTAs. But according to David Pluchino, vice president of US-based Phoenix Marketing International, very few (29 per cent) claim membership in an OTA loyalty program. “When we look at who among FGP members carry a membership in OTAprograms, we see that OTA members tend to be most likely from Generation “Y”, prefer economy-tier lodging products, and spend an average of 25 nights a year in hotels. These individuals appear to be less-experienced travellers than most members of hotel FGPs.”
Pluchino believes that there is a place for the OTA web sites and OTA Loyalty Programs in the distribution channels, but hotels should use their own web sites.
“While the consumer may be able to get a room at a property for the same price whether they use an OTA site or a hotel site, it is in the financial interest of the hotel to drive traffic through its own site. It is interesting to note the emergence of Roomkey, a web site developed by a combination of six hotel companies in early 2012. This site offers the traveller the ability to earn points in the hotel FGPs, something the traveller may or may not be able to do when booking through an OTA site.”
