Hotels forced to undercut internet rivals - 23-Mar-04.
More hotels are being booked online than ever before, but consumers are not booking direct with hotel websites because they are finding lower rates elsewhere on the web.
When searching for the cheapest room rate in UK hotels, a survey by KPMG found that 58% of the cheapest rates were offered by an online travel agent rather then by the hotel direct. In Western Europe as a whole the figure is about 45%.
In the US, online agents like Expedia and Travelocity offer the cheapest hotel around 10% of the time, because in 45% of cases a corporate travel agent offered the best rates, according to KPMG.
KPMG’s Global Hotel Distribution Survey 2004 researched room rates through multiple online channels and direct channels (including calls to the hotel and hotel call centre) from 310 hotels in 13 countries.
Only 2% of hotels showed consistent pricing across all direct and indirect channels. According to Mr Pattie, 14% of US hotel bookings were generated from the internet in 2003.
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