HOTREC / Survey on the Dependence of European Hotels on Online Agencies
HOTREC (the Association of European Hoteliers) and the University of Applied Sciences Western Switzerland Valais (HEV-SO Valais-Wallis) conduct a joint study of the European hotel distribution market every two years.
The first results, based on observations gathered from more than 3,400 hotels across Europe, including hotels that are members of our Association, show that hotels’ dependence on online platforms continues to grow, while the share of direct bookings is declining. The largest player in the Online Travel Agency (OTA) market is still Booking.com, which has increased its dominance compared to 2015 and reached a 66% market share.
Of the 3 OTAs that currently control 92% of the online market in Europe (and more in some countries), the two largest, Booking.com (66.4%) and Expedia (16.6%), continue to gain ground in the market. The third largest player, HRS (9%), has continued to lose ground over the past 2 years. At the same time, the share of bookings made through OTAs rose from 23.1% to 26.1% over the past two years.
As for relations with OTAs, the majority of hotel operators (50%) feel under pressure to accept the platforms’ terms and conditions (for example, regarding cancellation policies and special discounts). Small and independent hotels are under more pressure than large hotels or hotel chains.
Regarding disputes with OTAs, 70% of hotels believe there is no fair and effective resolution to disputes.
