Travelers who book through OTAs stay longer, spend more during trips
Over one-fifth of surveyed travelers used an OTA in trip planning and booking; OTA bookers stay 8% longer and spent nearly 18% more per trip than non-OTA bookers.
Expedia partnered with Oxford Economics to analyze hotel guest spending during more than 98,000 trips, segmented by guests who booked part or all of their trip using an online travel agency (OTA) and non-OTA guests – and the results are telling.
Travelers who booked via an OTA spent more per trip than non-OTA guests across all categories, regardless of whether they were traveling for business or leisure, making them a valuable segment of customers for hotels.
Over one-fifth (21 percent) of surveyed travelers used an OTA in trip planning and booking, and according to the data, OTA bookers stay eight percent longer and spent nearly 18 percent more per trip than non-OTA bookers. Coined by Oxford Economics as the “OTA Premium,” this variance between OTA guest and non-OTA guest spending is evident across all categories, including food and beverage, retail, recreation and entertainment, and transportation. The largest spend difference is in the retail category, where the OTA premium is nearly 26 percent, followed by transportation and recreation and entertainment, both upwards of 20 percent.
The Oxford data on the value of an OTA booker is further substantiated by local market data from Las Vegas. According to an August 2017 gaming survey of over two thousand U.S. respondents, Expedia Las Vegas bookers spend over $1,750 per trip. When visiting Las Vegas, Expedia travelers visit an average of three different hotels per trip, and spend more than the Las Vegas Convention and Visitors Authority (LVCVA) average on shopping, dining, shows, site seeing and transportation.
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