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Online: Hilton's own sites deliver big bucks
Hilton takes online charge
Hilton Hotels Corporation expects more than $2.5 billion in revenues generated from bookings on its proprietary websites for the full-year 2006 compared to $709 million five years ago, in 2002. Bookings through its websites have increased at a steady 30 percent year over year since 2002, and accelerated to a 39 percent increase in the third quarter of 2006 versus the third quarter of 2005. This represents a 60 percent increase in revenues and a 43 percent increase in room nights for third quarter 2006 vs. prior year, according to the company.
It further shared that website bookings currently represent 17.2 percent of the company's overall distribution of bookings, compared with 9.1 percent in 2002, making it the most dominant central delivery channel for the company. In contrast, contribution of third-party online agencies has remained flat at three percent of reservations, and now represents just 15 percent of the company's Internet business.
Acknowledging that company's brand site bookings have increased at a staggering pace since 2002, Tom Keltner, president - brand performance and development group, Hilton Hotels Corporation said. "With its acquisition of the lodging assets of Hilton Group plc and a growing international presence, website bookings outside of North America represent the next frontier for significant growth, where we are in the process of implementing our successful online distribution strategy and enhanced features."
02 November 2006