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The Battle for Loyalty - Online Travel Agencies vs. Suppliers:
Expedia / Hotels.com vs. Marriott / Starwood / Hilton
Online travel agencies are feeling the pressure as consumers are beginning to migrate to lodging suppliers to research and book travel. This competitive lodging report explores this trend and addresses the following questions:
- Will the trend towards suppliers continue or will OTAs prevail?
- Are users likely to research lodging on one travel site and purchase on the other?
- What factors impact the purchase decision – price, content, functionality, rewards?
- How effective are loyalty programs for attracting and retaining customers?
- Are loyalty members really loyal?
 Highlights
- Consumers are initially more likely to prefer purchasing from a supplier directly, than an OTA; Although, after experiencing the sites, overall purchase intent on leading OTAs outperforms suppliers
- Supplier loyalty programs are a key differentiator; Loyalty members will pay more for hotel accommodations and are twice as likely to return, purchase and recommend as non-loyalty members
- However, loyalty membership does not guarantee purchases; 48% of Marriott Rewards members and 44% of Starwood Preferred Guest members would prefer to purchase from Expedia or Hotels.com than the supplier after experiencing each of the sites
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Table of Contents
» Download Free Abstract
Branding and Loyalty for Online Travel Agencies: Expedia v. Orbitz v. Travelocity
As the online travel market becomes more and more competitive, many of our clients and other industry leaders are looking to understand the importance and impact of brand and loyalty on conversion. Branding and Loyalty for Online Travel Agencies addresses this need and answers the following questions:
- What are consumers looking for in an online travel experience?
- Do consumers remember and recognize a unique brand identity?
- Does loyalty exist among online travel agencies, or are consumers simply shopping on price?
- Where and how will online travel companies invest in building a brand vs. new features vs. competitive pricing strategies?
Highlights
- In March 2005, more than 18.7M consumers visited Expedia.com, followed by 17.7M to Orbitz and 12.6M to Travelocity.
- Select travel suppliers who made the top 15 ranking include Southwest, Delta, American Airlines, United, and NWA.
- Consumers are twice as likely to prefer Expedia or Travelocity compared to Orbitz for purchasing leisure travel online.
- Among Expedia and Travelocity "loyalists", 40% are likely to switch to another site to make a purchase; Travelocity shows the highest switching behavior.
- The most preferred travel tagline is: "Best Prices, Best Places, Guaranteed." (Hotels.com)
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Table of Contents
- Report Highlights
- Background
- Objectives
- Detailed Findings
- Behavioral Analysis
- Consumer Attitudes
- Overall Preference
- Task Performance
- Customer Loyalty
- Brand Affinity
- Best Practices
- Methodology
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» Download Free Abstract
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