comScore Study Finds Online Hotel Bookings Continue to Shift From Online Travel Agencies to Supplier Sites

Hotel market share through online travel agency sites (e.g. Expedia and Orbitz) is now 28 percent, 3-percentage points down from a year ago.

  Dollar Share of Online Hotel Bookings between Supplier Sites and Online

  Travel Agencies

  Total U.S. - Home/Work/University Locations

  Source: comScore, Inc.



    Web sites                      Q1 2007         Q1 2008     Point Change

  Supplier Sites                    69.2%           72.4%           3.2

  Best Western                       2.5%            3.8%           1.2

  Choice Hotels                      6.2%            6.7%           0.6

  Hilton                            19.3%           18.8%          -0.5

  Hyatt                              2.6%            2.4%          -0.2

  Intercontinental Hotels Group     12.0%           12.4%           0.4

  Marriott                          16.8%           18.1%           1.3

  Radisson                           0.5%            0.4%           0.0

  Starwood                           5.7%            5.6%          -0.1

  Wyndham Worldwide                  3.7%            4.2%           0.5

  Agency Sites                      30.7%           27.6%          -3.2

  CheapTickets.com                   0.9%            0.8%          -0.1

  Expedia.com                        9.8%            9.1%          -0.7

  Hotels.com                         6.2%            6.8%           0.6

  Hotwire.com                        1.2%            1.5%           0.4

  Orbitz.com                         4.8%            3.0%          -1.8

  Travelocity Brand                  7.9%            6.4%          -1.5

  *Excludes auctions and managed travel.

The increase in dollar share among supplier sites is being driven by several economy brands, such as Best Western (up 1.2 points) and Choice Hotels (up 0.6 points). Marriott, which includes both economy and premium brands, experienced the most significant increase of 1.3 points. Meanwhile, online travel agency sites lost dollar share as consumers booked directly on the supplier sites.

"The current economy has many consumers and business travelers tightening their belts, and the travel industry is certainly feeling the impact," said Kevin Levitt, comScore vice president. "Customers are becoming more cost-conscious, seeking modestly priced alternatives for their hotel stays."

Economy Hotel Brands Increase Paid Search Advertising in Down Economy

Given the current economic conditions, some hotel groups are shifting their online ad dollars away from premium brands. Consider as an example the Intercontinental Hotels Group, which owns both premium and economy brands. Its economy brand, Holiday Inn Express, increased its total number of paid search link exposures by 16-percent, while its premium brands, like Crowne Plaza (down 41 percent) and Intercontinental (down 26 percent), reduced exposures.

  Intercontinental Hotel Brands Paid Search Link Exposures

  Total U.S. - Home/Work/University Locations

  Source: comScore Marketer



                                 Total Number of Paid Search Link Exposures

                                 Q1 2007       Q1 2008   Percent Change Y/Y

  Intercontinental Hotel Brands    55.1         48.5           -12%

  Holiday Inn                      30.7         30.8             1%

  Holiday Inn Express              16.2         18.8            16%

  Crowne Plaza                     13.4          7.9           -41%

  Intercontinental                  6.6          4.9           -26%

"With consumers shifting their spending toward lower-cost alternatives, it makes sense that marketers would be shifting their ad spending accordingly to achieve better marketing ROI," added Mr. Levitt.

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