With the mergers of TUI/First Choice (September) and Thomas Cook/MyTravel (June), four of the five leading European tour operators will become the two top players in the market. The strategy of these four travel giants seems clear: gain back online market share by demonstrating their abilities to deliver higher value for customers than their online rivals.
Internet distribution has become much more significant for the tour operator market, as evidenced by the success of online travel agencies. Internet sales reached about one fifth of prepackaged gross bookings in 2006, and are projected to approach 30% in 2008. This report sizes the European tour operator market and describes the market forces and strategic trends impacting growth.