By K.C. JonesInformationWeek
The company reported Wednesday that supplier Web sites accounted for 72% of online hotel spending during Q1 of 2008. That's a three-percentage point increase in dollar share from last year. Hotel market share through online travel agency sites like Expedia and Orbitz dropped three percentage points from a year ago, to 28%, comScore reported.
Small economy brands, like Best Western (which rose 1.2 points) and Choice Hotels (which rose .6 points), drove the increase, according to comScore. The Marriott hotel chain, which has economy and premium brands, saw the largest increase (1.3 points), according to the report.
"The current economy has many consumers and business travelers tightening their belts, and the travel industry is certainly feeling the impact," comScore VP Kevin Levitt said in a news announcement. "Customers are becoming more cost-conscious, seeking modestly priced alternatives for their hotel stays."
Intercontinental Hotels Group's economy brand, Holiday Inn Express, increased its total number of paid search link exposures by 16%, while its premium brands, like Crowne Plaza (down 41%) and Intercontinental (down 26%), reduced exposures, which comScore said reflects a larger trend.
"With consumers shifting their spending toward lower-cost alternatives, it makes sense that marketers would be shifting their ad spending accordingly to achieve better marketing ROI," Levitt said.
Among agency sites, Orbitz saw the steepest drop (1.8 points) from 4.8% in Q1 last year to 3.0% in the same period this year. Travelocity was close behind, with a 1.5-point drop from 7.9% in Q1 of 2007 to 6.4% in Q1 of 2008.
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