Thursday, August 26, 2004

Travelers trust Web for best deals - survey results

A pair of surveys reported what appears to be obvious: People like to do their travel shopping in one place and don't trust that hotels will give them the best prices.

Harris Interactive (HPOL) said 91 percent of Web users want to comparison-shop multiple hotel brands when searching for a room. And 49 percent believe that a Web site like Orbitz.com (ORBZ), which sponsored the study, will give them better prices than they will get by calling a hotel directly (40 percent) or visiting a hotel's Web site (35 percent).

Meanwhile, JupiterResearch (JUPM) reported online shoppers check an average of 2.5 sources, including travel agents and Web sites, before making a buying decision. "Online travel consumers continue to be price-sensitive and increasingly demanding," said Diane Clarkson, a Jupiter analyst.
"Best-rate guarantees have begun to benefit suppliers in increasing direct online bookings. If airfare prices are equal, consumers are more likely to use an airline site than any other type of site to book their travel." she added.

Orbitz promotional bumph re above surveys
" (ORBZ), the site that makes it easy to find great travel deals, today announced the results of a national survey of travelers with internet access that reveals the majority (91%) want to comparison shop multiple hotel brands when booking a hotel. According to the Orbitz Hotel Survey, conducted online by Harris Interactive(R), nearly half of consumers (49%) believe web sites like Orbitz offer the lowest hotel rates more than calling hotels directly (25%) or using hotel websites (22%) do.

Amid industry discussion on where consumers find the best hotel deals, with online agencies or through hotels directly, the survey found that over the next 12 months, more online travelers (43%) anticipate using third-party sites like Orbitz most frequently for hotel reservations than calling a hotel directly (40%) or using hotel websites (35%).
"More than half of all hotels booked online are booked by a third-party agency such as Orbitz," according to a 2004 study by PhoCusWright. The study also confirmed, "Third-party sites offer compelling deals and shopping options and will continue to represent the greater share of hotel Internet bookings."
Low prices aren't the only reason consumers turn to sites like Orbitz when booking hotel rooms. Besides price, the majority (65%) of travelers look for the ability to search for hotels near a specific address, and another 33 percent value the ability to search for hotels by specific amenities such as a pool or fitness center -- features that are both available on Orbitz.
"This study confirms that the vast majority of travelers want to shop multiple hotel brands when booking a hotel," said Kurt Weinsheimer, vice president of Hotels at Orbitz. "At Orbitz, travelers get a one-stop shop for hotels, and our unique Matrix display makes it easy to compare different brands and properties by location, price and quality. Plus, our OrbitzSaver rate guarantee means travelers have access to the lowest prices available online."
The Harris Interactive(R) survey also validates that many consumers do not want to call hotels directly to haggle over rates. Among those who look at hotel rates online, 27 percent said they wouldn't call because there was no guarantee the rate would be lower; 21 percent indicated that they would avoid calling to request a lower rate because they were uncomfortable negotiating by phone; another 17 percent said they didn't have the time to make such a call; and 8 percent said they didn't want to spend the money on the call.

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