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Opaque hotel rates continue to outpace others
Daily rates from hotel rooms booked online on average increased by a higher degree than did the overall industry average, according to a recent study compiled by PricewaterhouseCoopers from Smith Travel Research, TravelClick and PhoCusWright.
Rates for Internet bookings increased almost 9% year over year in 2006, compared with an estimated almost 7% increase for room rates overall, according to the study.
And 2006 was the third year in a row that Internet-booked rates outpaced those booked without the Internet.
The biggest increase for Internet bookings was the almost 9% increase among opaque distribution channels—reservation sources that reveal the identity of the booked hotel only after a reservation has been placed.
The largest increase overall, 10%, was for those rates booked through central reservation systems directly from hotels.
Global distribution system bookings had the lowest rate of increase at 3.7%.
Among all distribution channels, hotel-branded Web sites had the largest percentage increase in the number of reservations, according to the report.
Bjorn Hanson, principal of PwC’s hospitality and leisure practice, said brands have been regaining control of distribution through increased occupancy, quality Web sites, price guarantees, new brands and enhanced loyalty programs.
Report by David Wilkening
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