Internet revenues for global hotel giant InterContinental increased during 2008, with 20% of total room revenues coming from web bookings, equivalent to around $3.2bn. The full-year results released this morning also show that 86% of the internet revenues come directly from IHG owned web sites. In 2007, internet revenues accounted for 17% of total room…
InterContinental Hotels claims one in five revenues come via online
Internet revenues for global hotel giant InterContinental increased during 2008, with 20% of total room revenues coming from web bookings, equivalent to around $3.2bn.
The full-year results released this morning also show that 86% of the internet revenues come directly from IHG owned web sites.
In 2007, internet revenues accounted for 17% of total room revenues, or $2.6bn. The proportion of bookings in 2007 which came through its own web channels was similar to this year at 85%.
Other insights into IHG’s distribution patterns show that it has increased the proportion of revenues from its own channels – call centres and front-desk as well as its own web sites – to 48% from 45% last time.
Similarly, its Priority Club Reward scheme members accounted for 37% of total room revenues in 2008 compared with 35% in 2007. It increased membership by 5m to 42m during 2008.
CEO Andrew Cosslett said that “the trading environment is very tough…and we see no signs of improvement at this stage.” The business has identified four priorities for the year, one of which is to increase market share. “The $1bn marketing and reservations system fund has been reprioritised,” it said.
The other priorities are to open more rooms, relaunch the Holiday Inn brand and reduce costs.
