Research from Onyx Payments Underscores Strength of Online Travel Agents
Dallas, Texas (PRWEB) March 09, 2016 -- Onyx Payments, the world's leading provider of commission payment processing, reconciliation and related data for hotels and travel distributors, today announced new research confirming the strength of online travel agents (OTAs) within the hospitality industry.
According to an Onyx Payments study, OTAs now represent the second-largest travel booking channel (after direct hotel channels) with a 24-percent share of bookings in the EU-3 countries of France, Germany and the United Kingdom. The recent growth in share of bookings was taken from global distribution systems, traditional travel management companies and hotel call center bookings.
"OTAs have clearly established themselves as a dominant booking channel and are here to stay, with new entrants and consolidation signaling this channel’s maturation,” said Mark Dubrow, CEO at Onyx Payments. “Over the past five years, OTAs in the EU-3 grew solid double digits, and were one of only two channels that grew in that period. With this healthy competition, we anticipate continued innovation across the entire industry as players find new ways to reach the buyer.”
The study, which looked at the market share of booking channels across the EU-3 and the United States between 2010 and 2015, found that:
• OTAs are the second-largest channel in the EU-3, experiencing a 14-percent increase in booking volume to reach a 24 percent market share by 2015. The channel is projected to grow an additional 15 to 20 percent by 2020. This growth will be driven by consumers’ continued preference for digital platforms and websites that provide extensive information about bookings – particularly in the EU markets where supply is more fragmented than in the United States.
• In the United States, the OTA channel has seen a dramatic increase of over 50 percent to comprise a 17 percent share in 2015. OTAs are projected to grow an additional 20 to 25 percent by 2020. Despite the higher prevalence of chain hotels in the United States, OTAs are now the third-largest channel in the United States.
• Direct hotel website bookings have increased 25 percent to comprise a 15 percent share in 2015 in the EU-3, while the channel has increased 15 percent to comprise a 23 percent share in the United States in the same time period. This growth has been driven by increased investment to build and retain loyalty and to discourage commoditization of hotel offerings through the traditionally low-cost OTA channel for direct bookings.
“While direct hotel bookings certainly provide a low-cost distribution channel, we encourage hotels to examine their revenue management practices to optimize their channel mix and maximize their yield-per-booking regardless of distribution channel,” said Dubrow.
Onyx Payments connects hotels and OTAs through an end-to-end commerce suite that addresses the ever-changing business needs of both segments, eliminating commission processing and reconciliation barriers and increasing transparency between hotels and travel distributors.
In 2014, Onyx Payments substantially expanded its market footprint by acquiring Norwegian commission reconciliation services leader Net Trans Services and international payment processing provider Worldwide Payment Services (WPS). The company is continuing to innovate to simplify complexity of transactions in the hospitality marketplace through "friction-free" commerce.
About Onyx Payments
Onyx Payments is the world’s leading provider of commission payment processing, reconciliation and data for hotels and travel distributors. The company strives to build long-lasting relationships with its partners, and is passionate about providing quality customer service, consultative insight and cost-effective solutions. Originating in 1992, the company facilitates in excess of $1 billion in payments annually, partnering with more than 60,000 hotel properties and 200,000 travel booking providers in more than 160 countries around the globe. In addition to its headquarters in Dallas, Onyx Payments has regional hubs in London, Manila, Seville, Spain and Tønsberg, Norway. For more information, visit http://www.onyxpayments.com.
Liz Cies, Idea Grove, +1 (972) 850-5855, [email protected]
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