In a new study by insight specialist, BVA BDRC, commissioned by the Expedia Group, OTAs are revealed to be a valuable research tool for Australian tourism operators.
The study assessed assessed the booking behaviours and spend activity of travellers to and within Australia. The study found that OTAs are a significant contributor to Australian tourism, supporting one in four of the industry’s jobs, and accounting for $7.1 billion of the $28.4 billion spent by international tourists in Australia over the 2017/18 financial year.
In addition to generating economic value via bookings, OTAs also provided a platform for Australian tourism operators to expose offerings to travellers that they may have otherwise not known about or considered.
For Australian hotels more specifically, OTAs were shown to provide a significant boost to bottom lines with bookers via these platforms spending an average of $385 (19%) more on paid accommodation per trip. In general, travellers also showed a clear preference for staying in hotels, as two thirds of travellers will include a hotel during their stay.
Abhijit Pal, Head of Research at Expedia Group, comments: “This is a critical piece of research that provides tangible economic figures on the positive impact OTAs have in supporting Australian tourism.”
“OTAs facilitate travel by bringing premium, high value visitors to and within Australia, who can really influence the profitability of tourism across the nation. While this is felt across both domestic and international travel, it’s the capability of OTAs to seamlessly bridge Australia to the world that is providing the most substantial impact.
“Tourism is Australia’s second largest export industry, and is considered all the more valuable because international travellers are spending foreign currency in the country, and this translates to new dollars circulating within the economy.”
With online travel agents predicted to be the fastest growing booking channel, expanding eight – 10 per cent annually through 2022 , Drew Bowering, Senior Director, Market Management at Expedia Group in Australia said it was important to articulate the 360o benefits for Australian hotel partners.
“As the world operates increasingly online, and prevalence of OTAs continues to grow, global leaders in travel such as Expedia Group are set up to provide a win-win for both travellers and Australian hotels. On the consumer front, Expedia Group branded sites provide a user-friendly way to compare options based on price, availability and guest reviews to ensure they’re booking the best option.”
“While for Australian accommodation providers, OTAs can not only deliver high value travellers but also help them drive incremental revenue through access to advanced tools and real-time data insights, unlocking new opportunities through technology on behalf of travel suppliers.”
