TripAdvisor claims $478 billion boost to travel economy from reviews COURTESY: TNOOZ.COM
FICCI and RezNext recently launched a knowledge paper on the technology landscape for the travel and hospitality industry.
ripAdvisor says during 2014 it influenced $478 billion worth of travel spend in the sector, equating to some 352 million room nights. Furthermore, additional travel expenditure generated by TripAdvisor is estimated to be in the region of $64 billion over the same period. The study by Oxford Economics found that 1.9 million jobs globally were “sustained by the travel spending” coming out of consumers using TripAdvisor for recommendations. All these eye-watering numbers have led TripAdvisor to claim that it accounts for almost 11% of the global online travel market. The estimated $64 billion spend “would not have taken place without TripAdvisor”, the company says, with a number of elements influenced, such as extended length of stay. Other findings are: - Driving general interest to destinations – the number of trips taken to a destination increases as content (photos, reviews, listings, information) is added to TripAdvisor. - Hospitality standards – feedback given from travellers helps product owners to identify where improvements should be made to a service. - Levelling the playing field – reviews and other content benefits independent businesses as they have an ability to compete on a brand-neutral platform.
Airlines’ Lead Over Online Travel Agencies Stalling VW BUREAU
A report by PhocusWright shows how airline websites have had an edge over owning majority of online air bookings over agencies.
irline websites have managed major gains over online travel agencies (OTAs) in the last few years, and now account for about three quarters of online bookings. But their share will remain unchanged for the next three years. A new report from Phocuswright, provides a detailed overview of travel distribution in the U.S., with analysis of trends in market share, technological innovation and consumer behavior. According to Phocuswright’s U.S. Airlines: At Cruising Altitude, online air bookings – including desktop, mobile, direct and intermediated – continue to grow slightly faster than air overall. “While it appeared that airlines’ website growth was unstoppable, they actually have maxed out their online direct booking gains for the time being,”
says Phocuswright’s senior research analyst, Maggie Rauch. “Airlines have optimized their advantage selling ancillaries such as extra legroom and checked bags, and now it’s the OTAs’ turn to grow airline revenue based on new merchandising capabilities.” Airlines own the majority of online air bookings through their websites and apps, but have not been able to add to their lead over OTAs. Still, airlines’ direct channel strength gives them more leverage than ever. It’s not out of the question for U.S. carriers to follow Lufthansa’s example of charging a fee for intermediated bookings in the near future. It remains to be seen if they will develop the technical readiness and commercial resolve necessary to take the plunge.