by WEX Travel
The primary message gleaned from several recent reports on the global travel market is one of continued growth despite ongoing challenges. But, what does that mean for individual travel companies and their ability to tap into a constantly changing marketplace?
Leveraging technology and adaptability are critical to future success, especially for winning a greater share of rapidly growing online bookings. While suppliers generally gain more online bookings, travel companies are seeing a higher growth rate.
Research conducted by Phocuswright (Global Online Travel Overview Fourth Edition and European Online Travel Overview Twelfth Edition) identified two specific areas of opportunity for online travel companies: mobile bookings and hotel bookings.
Mobile bookings are predicted to make up one-third of online travel company bookings by 2020. Winning more of these bookings is dependent on strong technology capabilities, which requires good working capital and a healthy cash flow.
Hotel distribution is an attractive segment for increased bookings, particularly in markets with many small independent properties. Smaller brands are also garnering greater attention because luxury travelers are choosing them for a more personalized and creative guest experience.
Travel companies aiming to gain ground in both mobile bookings and hotel distribution will want to look at how they are paying suppliers. Having the right payment strategy leads to improved cash flow, reduced staff time and happy suppliers (across the globe) who are paid in their local currency.
Infographic: Opportunities to Win Bookings in Today’s Challenging Marketplace
- Globally, 2016 online bookings increased by 10.7% over 2015, which is faster than the overall market’s increase of 4.8% for the same time period.
- 6 in 10 bookings will be made online by 2020 in Europe.
- Mobile bookings (9% of all European bookings from online travel companies in 2016 are estimated to increase to 14% by 2020.
- 63% of global online hotel bookings were made with online travel companies in 2015.
Our whitepaper, Stay Ahead in 2017 With the Right Payment Strategy, provides further insight into challenges facing the industry and explores how your payment strategy can help give you the power to keep ahead of the competition in winning customers.