With the old model of Online Travel Agents (OTAs) such as Hotels.com or Travelocity, the consumer visited the site, did a hotel search, selected a room, paid with credit card, and booking was complete.
But with consumer's increasing use of search engines to shop for rooms online, the traditional funnel has begun to significantly change. Not only is Google showing it's dominance in referral traffic (I'm assuming organic referrals, but won't rule out PPC referrals) but it's quickly approaching the majority of all unique (first time visitors) referral traffic as seen in the below line graph, but the bar chart at the bottom highlights the steady growth in direct consumer traffic from the search engines.
What does this mean for you? That both search engine optimization and online paid marketing are the dominate channels in which to acquire new customers.
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