Online agencies gain share in the hotel distribution business

Online agencies gain share in the hotel distribution business

The Confederación Española de Hoteles y Alojamientos Turísticos (CEHAT) has participated in a study conducted by the Institute of Tourism of the University of Valais in Switzerland that points to an increased dependence of hotels on online agencies across Europe. One in four stays on the continent is booked through this channel.

The survey was conducted among more than 2,000 hoteliers across Europe between February and April.

In the specific case of Spain, the market share of online agencies is even higher, accounting for 27.6% of total overnight stays in 2015. This figure is even more revealing when compared with the same statistics for 2013, when it accounted for only 21.7%.

With regard to the online agency market, it s clear that 92% of the European market is shared between three major agencies: the Priceline Group, Expedia and the HRS Group.

One of the most noteworthy comparative data between 2013 and 2015 is the significant decline in direct bookings from hotels. In 2013, in Europe as a whole, 57.6% of sales were made directly through the hotel, while in 2015 it was 52.8%. In Spain, the drop is almost 15% in the period studied, with  only 37.2% of sales.

It is significant to see how in Spain the share of bookings made through tour operators and intermediaries (28.4%) is much higher than in Europe as a whole, where it is less than 18%. In both cases, this share has remained practically stable between the period analyzed by the two studies carried out.

Significant progress is being made in the elimination of price parity clauses by online platforms and the authorities are expecting an increase in competition between them.

As far as the commissions paid by hotels to online agencies are concerned, there has been no major change. Only 8.5% of hoteliers in Europe as a whole have reported a reduction in commissions over the past year, while the rest continue to pay at least the same.

This figure is even lower in Spain, where only 7% of hoteliers report a reduction in commissions, while 93% report that they have remained the same or increased.