24 September 2008

Debunking those online travel industry myths

You've heard them - many started by those with vested interests, but let TravelMole in the USA debunk some of those travel industry myths for you!

The # 1 Online Travel Myth: The number of online travel buyers in the U.S. is declining.

In fact, that number is on the rise, as documented in The PhoCusWright Consumer Travel Trends Tenth Edition recently published by the travel industry research firm PhoCusWright Inc.

PhoCusWright debunked five online travel myths at its first-ever Analyst Forum, held September 10 in New York City.

In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

In addition to the misconception that online travel buyers are declining, The PhoCusWright Analyst Forum corrected these five other online travel myths:

Online Travel Industry Myth #2. More and more online travel shoppers use supplier sites than online travel agencies.

While this belief is widespread in the travel industry, it is simply untrue. In terms of popularity, online travel agencies are making a comeback.

Online Travel Industry Myth #3. Travel agencies are experiencing a resurgence as travelers return to traditional purchasing channels.

Not so. In reality, even many formerly exclusive offline buyers are migrating online for travel shopping and buying, according to CTTS10.

Online Travel Industry Myth #4. The next generation of travelers prefers to do everything online.

The truth is, less than half of what 18-28 year olds spend on travel is spent online, according to The NEXTgen TravelerÃ¢'~¢ report, jointly published by PhoCusWright and Y partnership.

Online Travel Industry Myth #5. Social networks and travel reviews have the greatest influence on travel decision-making.

The NEXTgen TravelerÃ¢'~¢ report reveals that while social media is widespread, destination Web sites and online travel agencies are favored by nearly half of next generation travelers during the travel shopping process.

Online Travel Industry Myth #6. Online travel markets need high credit card and Internet penetration to succeed.

The structure and ambitions of the travel marketplace are even more important drivers than infrastructure. Case in point is India, one of the most dynamic online travel marketplaces today, where roughly 98% of the India population do not use credit cards or have access to the Internet.

"Nobody wants to make strategic errors based on bad information," said Lorraine Sileo, vice president, research for PhoCusWright.

"Through this Analyst Forum, we were able to educate attendees about online travel myths and the realities in consumer behavior and to paint a picture of the new distribution landscape so that they can better assess their channel.

A Report by The Mole