Exclusive Insight: Why hotels lost ground online

by Tom Johansmeyer on

Yesterday, you probably saw that hotels are getting hit pretty hard by online travel agencies, as customers have been hunting for deals aggressively. The latest data from PhoCusWright puts branded hotel websites at 54 percent of the online channel, down from 59 percent two years ago. And a few weeks ago, we took a look at the competition between online travel agent and airline brands as we head into a travel market recovery.

Well, it looks like hotels are going to stage a similar comeback as the economy improves.

I reached out to Douglas Quinby, Senior Director, Research, at PhoCusWright yesterday to find out a bit more about the supplier/online travel agent dynamic in the hotel space.

Quinby wrote to me by email, “The interesting thing about this shift away from branded hotel websites to OTAs over the course of the recession – and this has happened with airline sites too – is not that hotel brands are not important, but that those travelers who care most about hotel brands, the frequent leisure and business travelers and true brand loyalists, were the ones that pulled back the most.”Essentially, hotels’ best customers started to stray, as cost became increasingly important given prevailing economic conditions. It isn’t surprising, of course: when you have fewer dollars, each comes with greater gravity.

Quinby continued, “When money is tight, price becomes more important, and the OTAs have deftly outflanked the recession by focusing on that infrequent leisure travel and what they care about most: deals!”

As business travelers come back into the market, it seems, the share of total travel spending going to the suppliers will again increase, as corporate travel budgets get a little looser and those making the buying decisions get a bit more freedom again. Quinby notes that this goes for frequent leisure travelers as well, with both categories leading to “improving performance in supplier websites.”

There’s no doubt that online travel agencies will need to increase their brand investments to compete effectively with hotel suppliers in 2011. Let the games begin!

So, how do you book hotels: with a branded hotel website or an online travel agent? Leave a comment to let us know!

Word Lens: the iPhone app that will change travel

by Stephen Greenwood on

There aren’t many apps that come along and significantly alter the way we live or travel, but this is one of them. The future is here.

Word Lens, released yesterday by QuestVisual, is an iPhone application that analyzes text in either Spanish or English and produces live translations in real time on your iPhone’s screen. Just point your iPhone’s camera at a sign, menu, or document and the application will display the translated text on top of the given object; arguably the most useful iteration of augmented reality to date.

Founders Otavio Good and John DeWeese have been hard at work for 2 1/2 years to make this a reality, and promise to expand with more languages soon. The app is available for free in the iTunes store, but the Spanish to English and English to Spanish dictionaries each cost $4.99.

At the moment, the application only processes text word-for-word, so there is no grammatical evaluation. But this is still useful for deciphering road signs, menus, and the multitude of printed text that one encounters when traveling in a foreign country.

DeWeese commented that they are also looking into non-latin character sets such as chinese, which is (understandably) “a few orders of magnitude more complex”.

So if you have an iPhone, head on over to the app store and download it for free to try out the demo and believe the magic yourself. If not, check out the video below.

Photo of the day (12.16.10)

by Meg Nesterov on


What charmed me about this photo from Thimphu, Bhutan, other than the pleasant colors and lines, was the caption. Flickr user AndreaKW translated the suggestion box’s Dzongkha script as literally “thoughts box” and I love the idea, much less pressure than coming up with constructive suggestions. A thoughts box could have notes like “Next time, pack fewer shoes” or “Why don’t I ever eat meat on a stick at home?” or even the classic “Help! I’m trapped in a thoughts box!” The possibilities are endless, especially for traveler interaction, like the postcards from strangers project.

Have any photos to leave in our thoughts box? How about adding them to the Gadling group on Flickr? We might just choose one of your shots as our Photo of the Day.

Virgin Galactic sets sights on orbital spaceflight

by Stephen Greenwood on

The stakes in the commercial space race just got a little loftier. Today, Virgin Galactic officially announced plans to team up with two U.S companies in pursuit of developing a commercial manned orbital spacecraft.

Backed by fearless entrepreneur Richard Branson, Virgin Galactic has chosen to support Sierra Nevada Space Systems (SNC) and Orbital Sciences Corporation (OSC) under NASA’s Commercial Crew Development Program (CCDEV2); an initiative designed to stimulate the development of privately-operated space vehicles. This falls in line with the comments Branson made in our exclusive interview at Spaceport America, saying that NASA’s role should transition to apportioning out money to private space companies.

Since it’s conception in 2004, Virgin Galactic has primarily worked alongside Mojave-based company Scaled Composites to develop a reusable sub-orbital craft, dubbed “SpaceShipTwo”. This design will take passengers over 62 miles into space, but lacks the power required to completely escape the Earth’s atmosphere, resulting in about 5 minutes of weightlessness. Orbital flights would give passengers a much longer weightless experience and views of the entire surface of the Earth.

SNC and OSC are following Scaled’s lead by researching designs that will utilize lifting-wing bodies and runway landings in an effort to minimize cost and maximize passenger safety.

While the first iteration of SpaceShipTwo, VSS Enterprise, has yet to make a rocket-powered manned test flight, Branson commented on the importance of looking ahead. “We are now very close to making the dream of sub-orbital space a reality for thousands of people at a cost and level of safety unimaginable even in the recent past…Today’s anouncement is an important step along the way of acheiving our ultimate and long term goal.”

We are indeed living in exciting times for private space exploration. Now go ahead and leave the inevitable “when can I afford it?” remarks in the comments section below!

Daily Pampering: Las Vegas hotels break out the mega-suites

by Melanie Nayer on

Admit it: You have always wanted to live like a high-roller, at least for one night in Las Vegas. There’s no shame in it – we all secretly have the desire, and it’s hard not to say no when Las Vegas hotels create suite packages and deals that make you feel like you’re top royalty.

At Las Vegas’ Rumor Boutique Hotel, however, the luxe life is little more in reach (well, depending on how many friends you want to share it with). The hotel recently announced their new mega-suites – The Swinger, The Gossip, The Camouflage, and The Diva – each one with a unique selling point. Whether you choose to whoop it up “Hangover”-style or unleash your inner-diva, you won’t be disappointed. But for the purposes of this Daily Pampering, we’re focusing on the bathroom: Every suite is also equipped with an “ultra-lounge/party bathroom” featuring a 10-person, open shower with two rain showerheads and a plush u-shaped couch that comfortably seats 10.

That’s right. You and 9 of your closest friends (or new friends you picked up that night in Vegas) can get cozy and clean under the rain showerheads of this “suite” bathroom. In addition to the sexy shower, each suite is 1,000 square feet with iPod docking stations, wet bar, mini refrigerator, four-seater high boys with a glass top, two custom-made couches, 60-inch plasma in the bedroom/living room area and a 32-inch plasma in the bathroom.

The price for this Daily Pampering: Weekday rates start at just $350 and $500 on weekends. Our suggestion: Tell your friends to bring their own soap.

Want more? Get your daily dose of pampering right here.