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Web 2.0
11/17/2005
JupiterReseach reports that online travel revenues will rise nearly 20% this year.
"We expect the online travel market to continue its strong growth over the next five years and to represent 34% of all travel spending in 2010," said David Schatsky, a Jupiter analyst.
Stating that growing numbers of online consumers and increased awareness of online travel services could drive 9% compound annual growth over the next five years, Jupiter estimates that online travel spending in the US, for both leisure and business, will rise to $104 billion by 2010.
Travel research firm PhoCusWright predicts that the growth in the industry will be even faster. Its projections cover leisure and unmanaged business travel.
The shift to online travel booking and purchases is being driven in part by supplier companies in the hotel, airline and car rental industries. By using online pricing and packaging incentives, they are hoping to garner a greater share of the business, as well as reduce the cost of telephone call centers.
Jupiter data indicates a gradual shift towards buying direct rather than through travel aggregator sites, such as Expedia and Travelocity.
In spite of recent industry excitement about "metasearch engines," such as SideStep and Kayak, which compare fares from numerous competiting travel sites, only 3% of the consumers surveyed by Jupiter reported using them.
For an in-depth look at the industry, see eMarketer's recent report: Online Travel Worldwide.
Source: eMarketer