Gus Gardner, Associate Travel and Tourism Analyst at GlobalData, comments: “The pandemic has caused a significant shift in consumer booking habits. A previous survey in Q3 2019** showed that OTAs were the most popular booking option, followed by direct booking with a hotel or airline. However, some OTAs have been extremely slow to issue refunds and have received a raft of bad press as a result. This has knocked travelers’ confidence to book through intermediaries.
“Direct booking channels are likely to have experienced an increase in popularity due to the fragility of booking a trip in the current situation. Travelers now desire the highest level of flexibility, and it is no wonder that direct booking channels’ flexible terms, easy changes and quick refunds are winning travelers over.
“Further, the ability to make changes online places the power back into the traveler’s hands and streamlines the whole process. By booking directly, the traveler cuts out the middleman, considerably speeds up the change/refund process, and increases their satisfaction.”
Some OTAs such as Lastminute.com have been slow to issue refunds, and the negative press received has not helped traveler confidence. In fact, in lastminute.com’s case, the UK Competition and Markets Authority threatened legal action unless it met a 14-day refund timeline.
Gardner concludes: “Confidence in OTAs’ ability to issue refunds has quickly dented confidence. The slow responses have been incredibly frustrating and have resulted in a slight shift away from this booking method.”
* GlobalData Live Tracker Verdict Poll of 156 respondents, Live since 19 April 2021.
** GlobalData Q3 2019 Consumer Survey, 29,744 global respondents. 44% of respondents preferred booking through an OTA, 36% directly with a hotel and 34% directly with an airline.
Tags: GlobalData
