PhoCusWright Unveils Revised Forecasts for the U.S. Total and Online Leisure/Unmanaged Business Travel Market Through 2010
April 24, 2009
PhoCusWright revealed updated market numbers from PhoCusWright's U.S. Online Travel Overview: Update 2009-2010 in a Webinar held yesterday. A sign that online travel has come of age, the online leisure/unmanaged business travel market is projected to decline 3% to US$93 billion in 2009. This marks the first time since PhoCusWright began tracking the marketplace in 1998 that online travel has fallen year-over-year. Representing more than one third of the total travel marketplace, the online leisure/unmanaged business travel market is now more or less mature and far more susceptible to broader swings in the economy and the total travel marketplace.
While online travel will decline in 2009, it will still far outperform the broader travel market and return to positive growth much sooner. With the recession in full swing and leisure and corporate travelers alike pulling back, the total U.S. travel market will decline 11% in 2009 to approximately $241 billion. This returns the total market to pre-2006 levels, when U.S. travel supplier revenue reached $251 billion. The drag on the total travel market is driven primarily by an even sharper decline in the corporate travel and groups and meetings markets.
"The travel industry has been experiencing significant declines in both traveler demand and revenue since the financial crisis unfolded; but not all travelers—and not all segments of travel—have been affected in the same way," said Douglas Quinby, PhoCusWright's senior director, research. "Companies mapping their strategies for 2009 and beyond must understand how different segments of the traveler population are responding to current economic conditions and the impact those responses will have on both product selection and booking channel."
The newly released PhoCusWright's U.S. Online Travel Overview: Update 2009-2010 delivers revised market sizing and forecasts for the U.S. total and online travel markets (including segmentation by travel product category and channel), in-depth analysis of shifting online travel agency and supplier Web site dynamics, and discussion of the traveler segments that will be traveling less—and more—in 2009. The Update 2009-2010 is included in PhoCusWright's Research Subscription: Global Edition.
Consumer segmentation is critical to understanding the significant changes the industry will undergo in the upcoming year. PhoCusWright's Consumer Travel Report Part One: Behavioral Trends examines U.S. traveler intentions for 2009 by describing the changes they plan to make in comparison to 2008. The findings highlight just how differently various segments of travelers are adjusting their trip behaviors in 2009, and what the industry can expect in terms of shift in consumer demand. PhoCusWright's Consumer Travel Report Part Two: Psychographic Trends relates traveler behavior to psychographic attitudes and values and will be released in May. Introductory pricing is available through April 28. The two parts are available separately or packaged together and are also included in the Global Edition.
