Booking Portals gain market share
Brussels / Berlin / Vienna On the market of European hotel booking portals only three major players hold 92 percent of the booking volume: Priceline with Booking.com, Expedia and HRS, the Priceline Group with more than 60 percent comprises the lion’s share.
These are the results of a recent study of HOTREC, the European umbrella association of the hospitality industry, which worked together with the national associations and the University of Applied Sciences Western Switzerland Valais.
According to the study number of direct bookings does not rise
The greatest losses in direct sales channels recorded the phone. The proportion of nights booked by phone decreased to the European average of 21.1 percent in 2013 to 18.7 percent in 2015 (- 2.5 percentage points). The increase in the sector of online portals is based according to the study, more or less on the growth of Booking.com and the portals of the Expedia group. Those generate together nearly 80 percent of all OTA bookings in Europe “The study clearly shows that online platforms attract a continuously growing share of hotel bookings, while own Hotel sales channels recorded declining values. So the dependence on OTA continues. It is particularly critical that the OTA market in Europe shows strong tendencies to develop a duopoly, or even a monopoly, where, Booking.com, a single player, controls almost two-thirds of the market, “said Christian de Barrin, CEO of HOTREC
booking portals in Germany already 24%, in Austria already 22%
Last year the European average of OTA share was 22.3 percent. “The function of the online portals will intensify in the future, considering that the proportion of online bookings in the coming years – will rise – to the disadvantage of offline bookings. Therefore, it is crucial that despite the enormous disparities between the various actors the market conditions become again fair and balanced “, says Markus Luthe, CEO of HOTREC Distribution Task Force and chief executive of the IHA.
Hotel chains bucking the trend? – Here more direct bookings observable
At the beginning of 2016 more than 2,000 hoteliers in Europe were interviewed about their distribution mix. Considering these evaluations solely the individual hotels in Germany, the share of nights, that were booked in real time on an Internet Booking Engine (IBE) on the hotel website, was only 5.5 percent. The chain-linked hotels on the other hand were able to post an overnight share of sensational 13.4 percent over their own websites. “These figures are very revealing and clearly show to attach value to the online professionalization. “Each organization must be booked directly online – and this is not somehow, but according to current quality standards,” said Klaus Niederacher, CEO of Seekda GmbH. “We need to give companies optimal and simple tools, so that every operation can be involved regardless of its size at the online market perfectly. To combat he booking platforms with antiquated technologies such as phone or Fax is no solution for the future, these channels will continue to decrease. We see this development with our own customers, who could gain some ground by using direct booking professionally “so Niederacher further, also pointing out the strong losses of traditional booking channels -. After all, a decline of 30% in recent years, via telephone, fax and selling through travel agencies
About Seekda: Seekda is a leading provider of e-tourism and offers intelligent, revenue-generating solutions for the tourism industry. Central to Seekda technology is a platform that enables a single input interface to global, automation-assisted online sales on the hotels own site, metasearch engines, booking platforms and Distributionsplattfortmen. Seekda was founded in 2007 and now employs more than 80 employees in Austria and Canada. In total already over 9000 hotels in 108 countries rely on solutions from Seekda.