Feb 9, 2010
  • Research and Analysis on Digital Marketing and Media
  • Objective Analysis of Internet Market Trends
  • Data from Over 4,000 Worldwide Sources


Print  |  E-Mail  |  RSS  |  More Articles   

Online Travel Up, Customers Down

NOVEMBER 9, 2007

Traditional agencies still booking business.

FBLI
Share

The number of North American consumers who take leisure trips is falling even as online travel revenue continues to climb, according to Forrester Research data cited in The New York Times. Forrester found that 9% fewer people will book travel online in 2007 compared to 2005.

eMarketer senior analyst Jeffrey Grau said that the drop in online travel customers could prompt change in the industry.

Need data for presentations? eMarketer subscribers can download charts instantly — over 50,000 choices.
Learn About an eMarketer Subscription

"Online travel distributors' booking tools were made for mass consumption of uniform goods," Mr. Grau said. "They have yet to switch to to an era of individual consumption of unique goods."

Consumers and Internet Users in North America Who Take One or More Leisure Trips per Year, 2005-2007 (% of respondents)

The Times also cited PhoCusWright, which found that online travel booking by Internet-using travelers had fallen to 62% in 2006 from 68% in 2005. Bookings among those who usually arranged travel offline increased to 31% in 2006 from 25% in 2005.

“Customers are tired of spending two or three hours trying to find the airline or hotel or vacation package that meets their needs," said Henry Harteveldt, Forrester analyst, in the Times.

Online travel revenues are still strong because average booking amounts have risen, according to Forrester.

eMarketer predicts continued growth in US online travel through 2010, when revenue will reach $145.8 billion.

US Online Leisure/Unmanaged Business Travel Sales, 2003-2010 (billions and % increase vs. prior year)

Mr. Grau said that personalized service from traditional travel agencies was still very much in demand, presenting a challenge for online travel distributors.

"[They] must become more flexible by allowing travelers to put together travel packages that fit their unique needs," he said.

Learn about other potential pitfalls in the online travel industry. Read eMarketer's US Online Travel: The Threat of Commoditization report.

 

Get more articles like this one delivered every day.
Click here for the eMarketer Daily newsletter.

Access More Articles Read More Articles     Email Article E-Mail This Article     Print Article Print
Subscribe to RSS Feed RSS Feed     Share
Add eMarketer to your Google Toolbar Add eMarketer to Google Toolbar
eMarketer Total Access Subscription
See how leading marketers use eMarketer to develop successful new digital marketing and media strategies. Get Total Access.

Advertisement

Advertisement

Follow eMarketer on Twitter