Thursday, January 01, 2009

Online travelers Choose Suppliers' Websites

This is an interesting stat. Fully 61% of online travel sales are now made directly at supplier sites, compared with 39% for online travel agencies (OTAs) in 2008. This balance is projected to hold steady through 2010.

"Online travelers have learned to book their reservations on travel suppliers’ Websites to avoid intermediaries’ service fees and collect loyalty points. Suppliers save money from direct bookings and thus encourage this behavior with aggressive, lowest-price guarantees."

Frequent leasure travelers and business roaders are seeking for financial benefits from supplier's, which explains their choice.

Indeed, customer relationship programs have incentived clients to remain loyal. If this stat doesn't give the whole picture, since infrequent leasure travelers would rather log on an online agency website, but that proves an efficient loyalty program could contribute to increase competitiveness, and therefore profitability.