Although online travel agencies (OTA) exist on tourism market since 1996, they represent only a fraction of coverage in scientific tourism literature. Oligopolistic type of OTA market and relations between OTA and hospitality industry are referred mainly in industry journals and press releases. This paper tries to summarize existing knowledge about OTA market and investigate its position in Polish hospitality distribution channels. As previous research indicated that OTA cooperate mainly with business tourism establishments as a research area were chosen 20 Polish cities with highest population number. The number of Polish hotels from official record of Ministry of Sport and Tourism were compared with the number of hotels from a site of an OTA which has the highest market share (Booking.com). Over 90% of Polish hotels cooperate with Booking.com (almost all among 3,4 and 5 star hotels). Given the fragmented nature of Polish hospitality market and growing dependence of online distribution channels, it indicates a strong bargaining power of OTA. For that reason those contracts should be subject of industry specific regulations.
Wykorzystanie mediów społecznościowych jako narzędzia marketingu turystyczneg...
Online Travel Agencies on Polish Hospitality Market
1. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Adam Pawlicz
Uniwersytet Szczeciński
Online Travel Agencies on Polish
Hospitality Market
2. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Online travel agency (OTA)
• Combines utility of traditional middleman and online
access
• When selecting hospitality service customers look at:
Search engines
Other customers opinions
Credibility of retailer
Mobile access
• Brand is not anymore important (both hotel and
OTA)
3. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
OTA market worldwide (mld USD)
115
157
0%
5%
10%
15%
20%
25%
30%
0
20
40
60
80
100
120
140
160
180
2011 2012 2013 2014 2015
Online
%Mobile
↑ 37%
Tourism arrivals (2011-2015) =↑
19%
World GDP (2011-
2015) =↑ 1,5%
4. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
OTA market – oligopoly example
• Four biggest OTA in USA (Expedia, Priceline, Orbitz
Worldwide i Travelocity) 95% market share
• In Europie four biggest OTA control 45% of the
market
• According to HOTREC already in 2013 20% of hotel
reservations were made via OTA
5. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
OTA market in Europe (hospitality services)
OTA OTA brand Market share (%)
Priceline
Agoda 0,9
Booking.com 60,9
HRS
HRS 8,9
Hotel.de 3,8
Tiscover 0,2
Expedia
Expedia 9,2
Venere 3,3
Hotels.com 1,6
Σ 88,8
6. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Research
• Aim: to calculate the quotient of hotels cooperating
with Booking.com to the total number of hotels in 20
Polish cities with highest population number
• Data were compared from:
Booking.com
CWOH (official registry of Polish hotels)
• November 2015
7. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Structure of hospitality industry in Poland and
20 biggest cities (CWOH)
Class 20 cities % Poland %
5* 40 6% 68 3%
4* 125 19% 344 13%
3* 320 48% 1356 50%
2* 146 22% 710 26%
1* 41 6% 210 8%
Σ 672 100% 2690 100%
8. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Classes of hotels in CWOH and Booking.com in
20 biggest cities
Class CWOH % Booking.com %
5* 40 6% 39 6%
4* 125 19% 134 21%
3* 320 48% 338 52%
2* 146 22% 122 19%
1* 41 6% 20 3%
Σ 672 100% 653 100%
avarage 2,97 3,08
9. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Main findings
• Number of hotels in Booking.com makes 97%
(=653/672) of all hotels in 20 biggest cities in Poland
• Almost all hotels with 3, 4 and 5 stars sell their
services via Booking.com
• Hence it might be difficult for hotels to negiotiate
contract details with OTA
10. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Recomendations
• Hotels own marketing has little influence on OTA
distribution channel
• Developing own distribution channels is costly
• A recommended strategy for average independent
city hotels is to standardise product, abandon own
distribution and concentrate on the price as a
competetive advantage
• This means a return to marketing product
orientation
11. Pawlicz, A. (2016). Wybrane aspekty funkcjonowania OTA na
polskim rynku hotelarskim. Ekonomiczne Problemy Turystyki,
34(2), 155–165.
Thank you for your attention
adam.pawlicz@wzieu.pl
https://szc.academia.edu/AdamPawlicz
https://www.researchgate.net/profile/Adam_Pawlicz
www.turystykawmiescie.org
European Journal of Service Management (13pt)
www.wzieu.pl/sm