Who dominates the OTA market today? How does online activity travel How does the hotel industry influence the agency sector, what's in store for this segment, and how is power distributed among industry participants? The authors of the new report attempted to answer these and other pressing questions. research into the European hotel market, initiated by the European Institute of Tourism and the Association Hotrec.
According to the study, covering 2017 results, three major OTA market players led the industry: Holding (Booking.com), Expedia Group, and HRS. The combined market share of these players is 92%. Moreover, this arrangement will most likely remain relevant in the near future. 2 years.
Booking.com is the most influential OTA, with a 66.41% share. Booking.com's dominance has increased by more than 61% over the past four years (from 60.1% to 66.41%).
Expedia has almost maintained its market share over the past two years: 16.8% in 2015 and 16.6% in 2017.
At the same time HRS lost market share: last year it was 9% compared to 16.6% in 2013.
The study shows that hotels' reliance on OTAs increased between 2013 and 2017, and the share of direct bookings on accommodation websites has declined in Europe by more than 4 percentage points — from 57.6% in 2013 to 52% in 2017 (overall results, including hotel chain data).
The share of OTAs in hotel room bookings has increased by more than 61% over the past 4 years. — that is, from 19.7% to 26%.
How dependent are hotels on OTAs today? According to the study, small hotel properties (20 or fewer rooms) are particularly susceptible to addiction, accounting for 29.31% of the European market.
Hotel holdings (22.5%) are significantly less dependent on OTAs, than individual hotels. However, the overall industry's dependence increased between 2013 and 2017. This applies to small hotels, large hotels, boutique hotels, and well-known international brands.
As for some aspects of the relationship between hotels and OTAs, Most hoteliers (50%) are under some pressure from the booking systems, because we are forced to accept their terms and conditions (for example, regarding cancellation policies, special discounts).
In case of disputes with OTA 6 out of 10 hotels or 70% They believe there is no fair and effective way to resolve disputes. Again, small and independent hotels have more problems resolving disputes than larger hotels and chains.
Source: trn-news.ru