According to a recent study Oxford Economics study — Sizing Worldwide Tourism Spending & TripAdvisor's Economic ImpactIn 2017, a total of US$546 billion was spent on tourism through TripAdvisor. Research shows that this figure will soon increase will only grow, reports Hhotel Management.
As the publication's experts say, TripAdvisor "may be a problem for some hoteliers, but new research shows that the service has significant influence in the industry."
That's why hoteliers should continue to actively engage with the booking site, as without it, they will "struggle to get a piece of the pie," analysts say. Oxford Economics study.
The researchers combined TripAdvisor metrics, including property listings, page views, reviews, and average ratings, with an existing model of global tourism flows, Tourism Economics. They found that including TripAdvisor metrics in the data improved the model's accuracy and helped explain the particularly strong growth rates over the past few years.
What does it mean? TripAdvisor has helped attract more tourists to hotels: TripAdvisor reviews have influenced travel volume and spending. Tourists tend to book longer stays through the service.
In constant real prices, TripAdvisor's influence has continued to grow by an average of 7.4 percent over the past 10 years. Meanwhile, overall tourism spending averages 3 percent.
Analysts note that even when overall travel spending fell by 5.3% during the global financial crisis in 2009, spending on TripAdvisor remained virtually unchanged.
According to the study, travel spending associated with TripAdvisor page views, reviews, and ratings was estimated at 10.3 percent, or $546 billion, last year. In 2007, the figures were 7 percent, or $280 billion. The growth is clear.
However, it's important to note that the growth of TripAdvisor-related spending has slowed somewhat over the past few years. In 2015, the service's share was 10.1 percent. In 2017, it remained at the 2016 level of 10.3 percent.
According to the report, the global travel market last year represented 5.45 billion trips and nearly $5.3 trillion in value. Of this spending, $546 billion was influenced by TripAdvisor.
Source: trn-news.ru
