FOR IMMEDIATE RELEASE
Contact:
Douglas Quinby
+1 860 350-4084 x390
dquinby@phocuswright.com
U.S. Online Travel Market to Decline in 2009, but Outperform All Other Distribution Channels
PhoCusWright’s U.S. Online Travel Overview Ninth Edition reveals market sizing and forecasts for all major travel segments and distribution channels through 2011
Sherman, Conn. USA, October 29, 2009—The U.S. online leisure/unmanaged business travel market is significantly outperforming every other distribution channel in 2009, according to travel industry research authority, PhoCusWright Inc., in its soon-to-be-released report, PhoCusWright's U.S. Online Travel Overview Ninth Edition. Amid a severe economic downturn, U.S. online leisure/unmanaged business bookings will decline 7% while the total U.S. travel market will post a 16% drop.
"For the first time since PhoCusWright began tracking the remarkable trajectory of the Internet in travel distribution, online travel will decline in 2009. But the 7% drop in online travel vs. far steeper double-digit declines for the total travel market and offline channels indicates that travelers are increasingly turning to the Web to shop and purchase travel amid the recession," says Douglas Quinby, senior director, research at PhoCusWright.
The sharp fall-off in traveler demand and spend this year will reduce the size of the overall market to pre-2005 levels. However, the pullback has not been as severe for Internet distribution channels, which have outshined other sectors in 2009. As a result, online travel's share of the total travel market will surge from 35% in 2008 to 39% in 2009, with online travel agencies (OTAs) proving far more recession-resistant than supplier Web sites.
"By honing in squarely on consumer concerns in 2009, heavily promoting deals and last-minute special offers and eliminating many booking and customer service fees, online travel agencies have deftly outflanked recessionary pressures and are outperforming every other distribution channel. OTAs are taking back some share from travel supplier Web sites this year," adds Quinby.
With 2009 coming to a close, all eyes are focused on the turnaround and outlook for 2010 and 2011. PhoCusWright projects very modest growth for the travel industry in 2010, but the outlook varies for travel segments and distribution channels. PhoCusWright's U.S. Online Travel Overview Ninth Edition provides market sizing and forecasting for key online and offline channels (online travel agencies, supplier Web sites, traditional travel agencies and offline supplier direct) and all major travel segments (airlines, hotels, car rental, vacation packaging, cruise and rail) through 2011.
Introductory pricing (save US$500) is available through November 30. The report will be available to Global and European Edition seatholders (expected publication date is November 6).
About PhoCusWright Inc.
PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning and tactical decision-making.
PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior. Every day around the world, senior executives, marketers, strategists and research professionals from all segments of the industry value chain use PhoCusWright research for competitive advantage.
To complement its primary research in North and Latin America, Europe and Asia, PhoCusWright produces several high-profile conferences and trade shows in the U.S. and Germany, and partners with conferences in Canada, China and Singapore. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce.
The company is headquartered in the United States with Asia Pacific operations based in India and local analysts on five continents.
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© 2009 PhoCusWright Inc., Sherman, CT USA
+1 860 350-4084 www.phocuswright.com
