Local Hotels
Small and medium-sized European hotels may still increase online bookings
Europe is famous for its group of small hotels medium, independent and boutique, every nook and corner is populated with different categories of hotels in small and medium-sized companies recognized for his legacy, specialization and uniqueness. In all these years, these hotels have benefited from growth in the tourism industry and little by little over time have shifted from traditional channels and has created their online presence. Europe has always been one of the major tourist destinations in the world and travelers from the U.S., Europe and Asian countries have contributed always an important part in the numbers of inbound travel.
2 years ago ie 2008 …
In 2008, target = "_blank"> PhoCusWright, the travel industry research firm predicted bright prospects of online travel bookings in the countries of northern Europe. According to the online edition of Travel Overview Fourth, PhoCusWright found that Europe will remain a growth double-digit online travel in the next 2-3 years.
- Spain will experience the fastest growth in online bookings 17% in 2007 to 26% in 2010 due to change lanes and hotel segments of the traditional Internet channels.
- Italy will grow by 22% over the same period almost half of free time online in the country / unmanaged business travel sales are generated by low cost airlines.
- France is expected an increase of 16% to € 7.3 billion in 2008, as online travel agencies (OTA) were growing at an even faster pace, as both large chains and hotels independent make extensive use of this sales channel
- Scandinavia is expected to "cross the chasm" in 2010, making it the second European market to generate half of its reserves in line (after the United Kingdom).
… PhoCusWright gave similar bright prospects for travel reservations line in most other European countries. However, in the last two years the picture has changed completely …
The current scenario in 2010 …
Everything was on a growth path as predicted by PhoCusWright, until …
… The financial crisis affected the area euro. First there was the cloud of ash from Iceland who led the entire travel industry to an end and suddenly with Greece's worst financial crisis affecting the European market and countries especially Northern Europeans. In the last 15-20 days, stock markets in Europe have collapsed, affecting markets around the world. The euro hit a low 14-month high against the dollar. Previously companies went bankrupt, now the countries are turning belly up. Experts believe it is only the tip of iceberg and some economies comes soon as the eurozone countries have a total value of public debt 6000000000000 pounds. EU crisis could debt extended to banks in Portugal, Spain, Italy, Ireland and the UK, according to Moody's. The rating agencies have downgraded the debt of Spain and Portugal, well as that of Greece. 20% unemployment rate in Spain is the highest in the developed world. Standard & Poor's downgraded the long-term rating of Spain sovereign credit to 'AA' from 'AA +'. There could be a further deterioration.
Its effect on the market Online travel and especially for medium-sized independent hotels, boutique and …
These local hotels being beaten severely, not only the financial crisis and glooming and travel industry, but also the growing presence of global giants, especially in the U.S. seeking European expansion sources of growth beyond that already dominate the market. Recently, Otto & Co. reported that Four Seasons Hotels Inc., Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc., are stepping up their expansion efforts in Europe.
These big names to their financial capacity could completely overshadow the presence local players on the internet – the one and only means by which smaller players to reach potential customers worldwide. Whether positioning listings in search engines or OTA or online ads and social media platforms, large hotels aggressively market to be visible to most of the target looking for accommodation in the region. Taking into account how local European giants, and the global ones that are extending their reach in this region, quite obvious that all the leading portals, keywords, titles, search engine results and OTA, etc. and these brands involved will be all in the space digital.
In addition, worldwide, international visits fell an estimated 4.7%. Overnight visits to European destinations fell by 6% in 2009 deleting two years of gains, while international travel around the world fell an estimated 4.7% against the headwind of global recession. Losses were more severe in Europe, which shed about 6% of the volume of visitors in Q1 2010. This marks a continuing trend of global losses of market share in Europe West, whereas emerging Europe continues to gain market share. Similar is the situation for the traveling U.S. entry and other important contributors other European countries like Germany, France, UK, Russia, etc.
(Source: European Tourism in 2010: Trends and Prospects (Q1/2010), the Commission European Travel, April 2010)
Another factor contributing to this poor performance is that travelers tend toward shorter vacations in the distance and duration. This has resulted in the collapse of prices for rooms.
Micro, Small and Medium Hotels need to expand beyond of the top global OTA
Amidst this scenario, the hotel industry across Europe are struggling hard to maintain its existence and fascinating numbers, 2008 by PhoCusWright is nothing but a mirage. In view of these factors, it is clear that all local players and independent experience a significant decline in its line reservations. big question is how these small hotels, boutique and independent media can survive and maintain their existence in this highly competitive environment and recession.
To deal with any crisis, the best option is to find the best practices of history. There are numerous examples of companies expanding their reach to emerging economies The terms of the world lobby usually as the third world, namely Asia. Especially from the perspective of the travel industry, Asia is of great importance and the underlying opportunity European Hospitality Industry.
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Source: European tourism in 2010: Trends and Prospects (Q1/2010), the European Travel Commission, April 2010
Each year, most of the passengers out of the Asian countries like India, China, Korea, Japan, travel, etc. European countries for commercial and leisure. This region has experienced one of the fastest adoption rates of online travel bookings. Now the question is where these travelers buy their package – mainly OTA of local, national or regional.
However, contact a local travel agent is a thing of the past in Asia. These countries have seen a revolution digital in recent times, not just the Internet penetration in Asia has increased, but digital field as a whole, such as mobile phones and media sites social has led to a dramatic increase in online travel bookings via Asia. Today, online travel bookings to contribute a share majority of total reserves made this region.
Small and medium hotels need to go beyond the top global OTA and Regional loved and get straight to the top OTA across Asia and will be available and included in the platform where the most tourists book their packages. These OTA local and specialist in Asian countries have association agreements with their counterparts across Europe to offer travel packages and accommodation of the region.
Some of the top regional OTA hotels I would recommend small and medium businesses to partner in Asia are as follows: –
- India: MakeMyTrip, Yatra, Travel Guru, Cleartrip.com
- China: Chinatravel.com, Topchinatrip.com
- Australia: Wotif.com, Qantasholidays.com, Checkin.com, Directflights.com, Flightcentre.com, Roamfree.com
- Singapore: Asiatravel.com, Holidaycity.com, Zuji
- South East Asia: Agoda.com, Sprice.com. Ratetogo.com, Priceline.com
Therefore, the mantra of success for hotels small and medium enterprises in Europe to cope with the growing dominance of global brands and declining stocks online is expanding its reach to countries Asia and member of the OTA and local expertise in this region.
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