Online travel market: tighten your seat belt
The fast-growing online travel market has been a huge success but there’s trouble in its future path, says eMarketer.
They estimate that in the US, online consumer travel sales were $79 billion last year and will grow at a 17% annual rate to reach $146 billion in 2010.
Growth is slowing, however.
And while 17% is respectable growth, it falls short of the 28% annual growth rate posted from 2002 to 2006.
eMarketer is not alone in its opinion, however.
PhoCusWright, Forrester Research and comScore NetWorks all agree that online travel sales growth is declining.
And that’s not the only problem.
“The travel industry is undergoing a revolution that is redefining the rules of engagement between travel firms and consumers,” says Jeffrey Grau, Senior Analyst and the author of the new US Online Travel: The Threat of Commodization report. He adds:
“In addition, a tighter market will exacerbate the fierce competition between online travel agencies and travel suppliers in an already commoditized market.”
Lower industry entry barriers are paving the way for new online travel business models, said Mr Grau. He added:
“In this dynamic environment, current industry players must stay alert or risk being blindsided by new competitors that fall under their radar screens.”
The online travel market is a hotbed for experimentation, with new travel sites popping up weekly.
“Internet-savvy consumers are exploiting powerful online resources to find information about travel products and pricing,” says Mr Grau.
Report by David Wilkening
David
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 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026