Comment: High street agents losing out to OTAs
Global online travel retail sales rose 11% increase in 2011 as a result of a general shift in bookings from high street travel agencies to online travel retailers, says online travel analyst Angelo Rossini.
"In 2011, online travel retail sales recorded the highest percentage increases in Australasia, Eastern Europe and Asia Pacific. North America led online travel retail sales in 2011, but recorded weaker growth in percentage terms as its online travel retail category is approaching maturity.
|
Online Travel Retail Sales by Region: 2010-2011
US$ million
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Source: Euromonitor International |
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US players continue to lead online
Expedia maintained its global leadership in the online travel retail category in 2011, however Priceline.com gained ground as the second leading player with its sales recording a sharp increase of 57% in the same year.
Priceline.com also strengthened its position as the leading online travel agency in the hotels category. Priceline.com’s strong performance was mainly driven by sales of its Booking.com and Agoda brands in Europe and in emerging economies, especially Asia Pacific and Latin America. The company also benefited from the good performance of Booking.com in North America, a new market for the brand.
|
Top Online Travel Retail Companies: Global Sales 2010-2011
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Source: Euromonitor International estimates, company reports
Emerging economies to drive future growth
Prospects are very positive for the online travel retail category over the 2011-2016 period, with growth expected at a 6% CAGR (compound annual growth rate) in constant value terms.
While online travel retail is approaching maturity in North America, it still has much room for growth in emerging economies like Asia Pacific, Eastern Europe and the Middle East and Africa. These regions are expected to achieve the best performances as healthy economic growth will favour the travel and tourism industry and a rapid rise in internet penetration and the popularity of e-commerce will favour online travel retail sales in particular.
Possible threats to online travel agencies in the next few years include the negative outlook for the economy in Western Europe and the rise of meta-search engines. Google and Microsoft are making inroads into travel meta-search engines through Google Hotel Finder, Google Flights and Bing Travel. A possible future development may see some meta-search engines favouring suppliers over OTAs.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps