Online Distribution Channels Experience Healthy Growth in First Quarter 2013

May 22 2013 | Latest News

By Claudette Covey
May 21, 2013

In the first quarter 2013, online channels that include Online Travel Agents (OTAs) and hotel Web sites ( continued to experience the most growth according to data from the TravelClick North American Distribution Review, which aggregates hotel bookings by channel for the individual leisure and business travelers.

The OTA channel saw a 13.7 percent increase in demand in the first quarter while bookings through the channel increased by 5 percent. The hotel direct channel, comprising phone calls direct to the property and walk-ins, increased 3.7 percent. The GDS (used by travel agents) and CRS (calls to a hotel's 800-number) channels, however, showed decreases of minus 0.3 and minus 4.1 percent, respectively, from a year ago.

Average daily rates in first quarter across all channels grew 4.2 percent compared to last year. The OTA channel had the highest ADR growth of 11 percent. OTA ADR for the second quarter is currently tracking ahead by 11 percent. ADR is also growing for the other channels, up 4.5 percent, 2.7 percent, 2.7 percent and 2.3 percent for CRS, Hotel Direct, GDS and, respectively.

“As occupancy continues to grow across all segments, we are seeing a corresponding and expected growth in ADR, especially in the leisure segment,” said Tim Hart, executive vice president, TravelClick. “With respect to the OTA segment, while we are seeing an uptick in transient demand for this channel, we are also seeing discounts narrowing. This combination ultimately means higher ADR for hotels.”