Biz-Changing Trends in Travel Distribution 2/2

June 30, 2008


In part one we identified and discussed some of the broader and more persistent trends in travel distribution over the last several years of increasing rates, occupancy, RevPAR and profits.


In this article, part two of two in this series, the same trends are discussed with some of the true thought and practice leaders in the industry.
There are probably a dozen trends of varying durations that we could examine.
For the purposes of this series, we chose the following four key business-changing trends that have shown some clear consistency and persistence over time:

  1. Transaction volume continues to shift to electronic channels, particularly to the Internet.

  2. The growth in Internet volume, particularly direct Internet transactions, is at the expense of voice channels and third-party channels.

  3. Integration of transaction-oriented booking engines with rich site design, search engine optimization and customer relationship management techniques drive trial by new customers, elevate the dialog with existing customers, and increase share of mind and wallet.

  4. Consolidation within the distribution industry continues, as niche players need to combine to gain meaningful scale and larger players acquire broader capabilities.


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