The Internet has changed the way consumers’ book travel and accommodation. This shift in consumer behavior has led to a surge in online bookings around the world and inherently meant a transformation in how hotels get their rooms to market.
Supporting this growth are recent figures released by SiteMinder, whose connectivity distribution platform, RDX (Room Distribution Exchange), processed USD$4.2billion in booking revenue for hotels from July 1 2012 to June 30 2013, doubling from USD$2.1 billion for the same period in the previous year.
“A rapidly expanding global property base and strong diversification in distribution channels are behind the rapid growth in year-on-year booking revenue,” David Williams, Executive Sales and Marketing Director, SiteMinder.
The USD$4.2 billion in revenue was generated by a record 10.5 million in hotel reservations that SiteMinder’s RDX platform processed over the past year, equating to an average of USD$390 for each booking, an increase of nearly $50 per booking compared to the previous period’s data.
SiteMinder’s CEO and Founder, Mike Ford, said the revenue increase continues to show that Online Travel Agent (OTA) bookings are a critical component to a hotel’s strategy and that the RDX’s distribution diversification into other channels – such as traditional wholesalers, GDS and meta sites such as Google and Trip Advisor – have helped drive this figure up over the past year.
“As the hotel distribution landscape continues to evolve, it is imperative that technology providers give their hotel clients extensive distribution opportunities. We have worked hard to ensure RDX is at the cutting edge of the distribution technology pack,” said Mr Ford
Over 50 technology companies now use SiteMinder’s RDX platform to power their distribution including MICROS, hetras, Sceptre Hospitality and Genares who have adopted the robust and reliable RDX platform to deliver enhanced distribution to their hotel customers.
“In the past 12 months, we have experienced extensive global growth, opening offices across Asia and Europe to provision our ever increasing client numbers. We’re extremely proud to be behind the revenue success that hotels have achieved using the RDX platform for their distribution. Our growth only highlights the importance of technologies like RDX in today’s distribution landscape and how they continue to redefine distribution globally,” said David Williams.