Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle

Don’t Cut Agents Out Of ‘Hotel-Direct’ Rates, Analyst Urges

by Michele McDonald / June 01, 2016


Are hotel chains’ “book direct” programs—which promise better rates and amenities to hotel loyalty members who book on their websites—working? 

Yes, they are, says John Hach, senior industry analyst at hotel technology company TravelClick. But at the same time, the travel-agent distribution channel is more important than ever.  

“Early indications are that hotel chains’ brand-direct programs are having an impact,” Hach said during a webinar on the industry’s first-quarter performance. There has been a year-over-year uptick of 0.8 percentage points, from 25.4% to 26.2%, in hotels’ direct bookings.  

But the GDS channel is growing 60% faster. Hach noted “surprising growth” of 1.3 percentage points—18% to 19.3%—for the GDS channel during the first quarter. He urged hotel companies to “make sure travel agents have access to those rates.”   

“People would have said a few years ago that it’s a dying channel,” said TravelClick director of data partnerships Katie Moro. “I love seeing that large number. It’s typically your higher-rate business.” 

“People tend to think GDS is all about negotiated rates, but there is quite a bit of retail [rack rate] as well,” Hach noted—and the high-average-daily-rate business of the travel-agency channel “lessens hotels’ dependence on discounted business.”  

“What I like about the channel is that the average travel agent books 22 times more hotels in a year than a consumer does,” Hach said. “They are super sellers of hotel rooms. And that doesn’t just play in one city or two cities. It’s truly global.”  

Hach said he expects agents’ revenue production to be strong in the coming year. It’s not just about the rate, he said. Since agents’ customers are often on expense accounts, “there are point-of-sale opportunities in what guests spend on property.” 

Travel agents contribute to both occupancy and revenue, he added. 

  4
  0
Riviera

MOST VIEWED

  1. All U.S. Flights Grounded Due to FAA Computer Outage
  2. FAA Closes Three U.S. Airports Over National Security Risk
  3. Norwegian Cruise Line Brings Back COVID-19 Requirements
  4. Forbes Says ‘You Need a Travel Advisor in 2023’
  5. What’s New in Travel Agent FAM Trips
  6. U.S. Embassy Issues Security Alert for Mexico After Cancun Taxi Protests

MOST EMAILED

  1. Forbes Says ‘You Need a Travel Advisor in 2023’
  2. All U.S. Flights Grounded Due to FAA Computer Outage
  3. Visitors to the U.K. Will Soon Need to Pay an Application Fee Prior to Travel
  4. Here Are the Automatic & Suggested Gratuity Policies for Each Major Cruise Line
  5. Beverage Carry-On & Corkage Fee Policies by Cruise Line
  6. Tour Operators & Advisors Forced to Cancel Trips as Peru Shuts Down Machu Picchu
Riviera Box
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Intrepid Travel Launches Turkey and Syria Earthquake Appeal
Intrepid Travel Launches Turkey and Syria Earthquake Appeal

The death toll from the earthquakes on Monday is already over 11,000 and is expected to rise further. 

Read...
TTC Brands Launches Unified Loyalty Program
TTC Brands Launches Unified Loyalty Program

TTC's six tour brands will now share one loyalty program. 

Read...
ALG Vacations Wants Consumers to ‘Plan with a Pro’ in 2023
ALG Vacations Wants Consumers to ‘Plan with a Pro’ in 2023

Following "Year of the Travel Advisor" in 2021 and "Ask a Travel Advisor" in 2022, ALGV is back with a brand-new campaign for 2023. 

Read...
Journeysmiths Expands LATAM Offerings
Journeysmiths Expands LATAM Offerings

The new-to-the-U.S.-FIT operator will expand into five countries by the end of the year. 

Read...
Return to Japan: Intrepid Travel Leads Surge of New Tours
Return to Japan: Intrepid Travel Leads Surge of New Tours

Also, what visitors should know about travel to Japan. 

Read...
Audley Travel Names New President
Audley Travel Names New President

The new hire will take over as president and managing director of its U.S. business starting this May.

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
Celebrate National Don’t Plan for Vacation Day with Delta Vacations
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy