Negotiated Hotel Rates Outperform Internet Prices

Growth in the average daily rate for U.S. hotel bookings in 2004 made through third-party Internet sites was 6.9 percent, according to statistics released yesterday by TravelClick, a lodging industry consulting firm that specializes in electronic distribution. By comparison, average U.S. negotiated rates for 2005 rose by only 3.9 percent, according to PricewaterhouseCoopers. This indicates that, despite the pressure buyers have been under to allow travelers to book on third-party Web sites, negotiated rates remain the most cost-effective booking mechanism.

TravelClick found that the number of leisure and business room nights in 2004 booked through the third-party sites increased 10.6 percent from 2003 bookings.