Quality of business brought by agents is far better than other channels
Travel agencies will enjoy greater sales from hotels in 2011, encouraged by hotels’ stronger bookings and higher revenues. PhoCusWright reports a significant increase in hotel revenues via agencies in 2010, predicting a 10% increase in bookings made through traditional channels. “The quality of business being booked by agents is significantly different to that produced through other channels,” Douglas Quinby of PhoCusWright explains. Agent bookings usually yield longer stays and higher rates. Agents’ bookings with Starwood, for example, produce a higher ADR and longer stays because agents often book the premium-room categories.
Hospitality brands will keep a focus on raising consumer sales through their own websites. But revenues via the traditional agency channel are rising significantly. Some hotels companies are trying to push up travel agent sales by improving training programs and investing in better commission payment systems.
[pictured: Hotel Imperial, Vienna, part of Starwood’s The Luxury Collection]