The Power of Internet Distribution Systems (IDS / OTA) Generates more than 30% of all sales through IDS 18% of the hotels show a proportion of IDS in the distribution mix between 20 and 30% generated a turnover of 7.6 Billion Euros in the three countries. (Germany, Austria and Switzerland) The total amount of commissions paid to intermediaries by the hotels totals almost 1.3 Billion Euros

Aggregated Booking Channels 10.2% Traditional distribution 34.7% Electronic requests 27.0% Real-time online booking 28.0% Tourism partners

Travel agencies vs. the Internet Global booking trends Britons choice for 78 percent of their trips 47 per cent increase in internet bookings over 2008 Only 15 per cent of foreign trips were booked through travel agencies, almost two-thirds less than in 2008

In China and Russia more and more people are making use of the internet to book their trips instead of going to travel agencies 2008 to 2012 the market share of internet bookings in China more than doubled, rising from 19 to 39 percent Over the last five years Russians’ market share has nearly quadrupled, rising from nine to 42 percent

Dr. Martin Buck, director of Travel & Logistics at Messe Berlin “For many years, a trend towards the internet becoming the most important medium for booking trips has displayed in nearly all markets. Above all flights, followed by accommodation but also travel insurance or car hire are booked online. In countries where obtaining a visa is difficult and for long-distance trips travel agencies continue to play an important role.

People prefer to talk (hospitality is a person to person business ) When there is an error, it can fast respond and fix problems FACE-to-face haggling with a travel agent can cut the cost of a holiday by a quarter

FACE-to-face haggling with a travel agent can cut the cost of a holiday by a quarter It’s a huge 25% discount