KPMG's Global Hotel Distribution Survey PDF Print E-mail

KPMG's Global Hotel Distribution Survey

Since 1999 KPMG in the U.K. has conducted an annual survey of hotels to monitor the development of corporate online bookings and pricing across the distribution channels. In 2004 the survey was extended to include hotels around the world including North America, Europe, Asia, South Africa and Australasia. In 2005 KMPG have added more countries to the global survey including Russia, Austria and Dubai.

The survey reviews hotel room rates offered to customers across the core direct and indirect distribution channels i.e.,

  • direct call to the hotel
  • hotel Web site
  • hotel central reservation
  • online intermediaries
  • corporate agents

The survey also aims to identify the key distribution trends emerging across each region and to determine the distribution strategies currently adopted.


The key survey findings of the Global Hotel Distribution Survey 2005 has been:

Cheapest channel to book a room

  • Booking via an online intermediary agent resulted in the cheapest price in 36 percent of cases (35 percent in 2004), although this varied between regions.
  • When contacting hotels, you are more likely to obtain the cheapest deal via the hotel Web site in 45 percent of cases (compared to CRS and calling the hotel direct).
  • Overall, there is a 55 percent chance of finding the lowest room price online rather than through traditional channels.
  • A corporate traveler in the U.S. and Canada is likely to obtain beneficial rates by contacting a corporate travel agent.
  • For Eastern and Western Europe, including the U.K., it is more likely that the online intermediary sites will offer the best deals.

Pricing across channels

  • Hotels are not pricing inventory consistently over all distribution channels. Only one percent of cases showed consistent pricing across direct and indirect channels (two percent in 2004).
  • 17 percent of prices were consistent for direct hotel channels which is a marginal improvement on last year (15 percent in 2004).
  • The variance in room rates across all channels as a percentage of the lowest rate available has improved and was 30 percent in 2005 (50 percent in 2004).
  • The U.S. continued to display the smallest price differentials between channels at 21 percent.

Incentives and conditions of booking

  • Some 43 percent of hotel groups surveyed advertised best Web rate guarantees on their Web sites which is an increase of over 40 percent on last year (30 percent in 2004).
  • Of the hotels displaying price guarantees, only 27 percent delivered on their promise.
  • 97 percent of hotels surveyed attached a cancellation policy to the booking.
  • Other incentives offered by hotels to book with direct channels include bonus loyalty points, discounted use of business centre and meeting room and free internet usage.

pdf Global Hotel Distribution Survey 2005 0.17 Mb


The key survey findings of the Global Hotel Distribution Survey 2004 has been:

Pricing

  • Booking via an online intermediary agent resulted in the cheapest price in 35 percent of cases (although this varied between regions).
  • A corporate traveler in the USA is likely to obtain beneficial rates by contacting a corporate travel agent. For all other regions it is more likely that the online intermediary sites will offer the best deals.
  • Some 30 percent of hotel groups surveyed offered best Web rate guarantees. Of these hotels, only 28 percent delivered on their promise.
  • Hotels are not pricing inventory consistently over all distribution channels. Only two percent of cases showed consistent pricing across direct and indirect channels. Further, only 15 percent of prices were consistent for direct channels.

Channel performance

  • The standard of hotel Web sites is generally superior to the online agents in terms of providing information about the hotel and local area. The process of booking via a hotel is also generally faster than booking via online agents.
  • Hotel Web sites hosted in Canada and the USA achieved the highest ranking in terms of functionality and performance.
  • Customers receive the most accurate information about availability by calling the hotel direct and are able to open the most productive dialogue with reservation staff either to confirm facilities or to discuss preferences.
  • The service provided by Central Reservations varies depending on the brand as opposed to the region. Language can be an issue especially for non-English speaking customers.
  • Hotels do not always provide consistent information relating to availability across distribution channels.

pdf Global Hotel Distribution Survey 2004 0.10 Mb