Demand shifts drive distribution evolution
In the first quarter of 2012, OTAs drove only 8% of all hotel industry revenue while brand websites contributed 22.5%; GDSs drove 17.8%.
GLOBAL REPORT—With leisure demand growing at a much stronger pace than this time last year and most areas of the world forecasted for continued improvement, hoteliers would benefit by placing an increased focus on pricing and distribution strategies, TravelClick officials said during the company’s first-quarter update.
During the first three months of 2012, demand appeared to rise steadily across most areas of the industry. What stands out, however, is how the mix of demand has shifted, said Rao Avasarala, VP of business intelligence, on the first-quarter update webinar. Hoteliers, he said, can capitalize by getting the right product in the right places.
“Whether it’s a brand’s own channel or an (online travel agency) or the (global distribution system), all of them represent critical demand that needs to be understood well and utilized,” Avasarala said.