Last updated: 02:00 PM ET, Tue August 11 2015

Business, Leisure Mobile Bookings Increasing

Travel Technology | Ryan Rudnansky | August 11, 2015

Business, Leisure Mobile Bookings Increasing

In the second quarter of 2015, business and leisure travelers used both “old school” and “new school” methods of booking travel, according to data from the latest TravelClick North American Distribution Review.

As a result, transient bookings (business and leisure) in 25 major North American markets increased across online travel agencies (OTAs), official hotel websites and GDS channels, compared to the second quarter of 2014.

OTA bookings increased by 9.7 percent, year-on-year, while bookings through hotel websites and GDS channels increased by 5.8 percent and 2.2 percent, respectively, according to the review. 
Average daily rate (ADR) across all channels increased by 4.4 percent, compared to the second quarter of 2014. Interestingly enough, the GDS channel experienced the most growth in ADR among all channels (up 4.9 percent), a positive sign for traditional travel agents.

“Mobile bookings are increasing at impressive levels, and we anticipate the trend continuing into the foreseeable future,” said John Hach, senior industry analyst at TravelClick. “It’s not just millennials who are using their mobile devices to research and book rooms—it’s happening across all major consumer segments. Interestingly, the GDS continues to demonstrate growth, especially with higher ADR bookings.”

That being said, OTAs increased their share of transient rooms from 14.6 percent to 16.4 percent from the first quarter of 2015 to the second quarter of 2015, the highest increase in share among all channels. The GDS channel’s share decreased from 20.6 percent to 19.3 percent.

In other news, some “old school” booking methods appear to be losing steam. Hotel Direct bookings (calls made directly to the property and walk-in customers) and calls to a hotel’s 800-number (the CRO channel) decreased by 7.2 percent and 5.6 percent, respectively, compared to the second quarter of 2014.

TravelClick expects to see “similar booking patterns” by the time the third quarter comes to a close. Based on reservations that are currently on the books, transient ADR is up for all channels (4.7 percent increase). That includes an uptick across Hotel Direct (up 5.6 percent), GDS (4.6 percent), OTAs (3.9 percent), official hotel websites (3.8 percent) and CRO (3.8 percent).

The TravelClick North American Distribution Review is based on data for 25 major North American markets, comprising 227 million annual room nights and $36 billion in annual room revenue.



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