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U.S. Online Travel Overview Eleventh Edition: Airlines
Report | Published: November 2011

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Publication Summary

Phocuswright's U.S. Online Travel Overview Eleventh Edition: Airlines provides an in-depth look at the current state of the U.S. airline market and projects future performance, with market sizing and forecasting through 2013. The report reviews online travel trends, innovations and data crucial to understanding the dynamics of the air segment. Topics include online agencies versus air supplier websites, ancillary services and the future of flight search. Airline passenger revenues surged in 2010 and continue to rise in 2011, but with the economy sluggish at best, such gains have come from rising fares amid strong corporate demand and reduced capacity. Amid this difficult operating environment, airline distribution is experiencing heavy turbulence, as developments with direct connects, airline merchandizing and Google's foray into flight search reshape the airfare search-shop-buy process. U.S. Travel Market Overview To put the segment-specific trends in perspective, this report includes a comprehensive overview of the total U.S. travel market. The robust "Overview" chapter includes market sizing and projections for the U.S. travel market through 2013, including breakouts for key online and offline distribution channels and all major travel segments. Purchase Phocuswright's U.S. Online Travel Overview Eleventh Edition: Airlines to gain deep insight into the current performance and future outlook of the U.S. airline market. Get a complete view of the U.S. online travel market with the full report, Phocuswright's U.S. Online Travel Overview Eleventh Edition. Also Available U.S. Overview Hotel & Lodging Online Travel Agencies

Table of Contents

Size and Structure of the U.S. Online Travel Market

Airlines: The Gloves Come Off


Percent of Leisure Travelers by Age Group

Travel Frequency Intentions by Number of Leisure Trips in Prior Year

Total U.S. Travel Market, 2006-2013 (US$B)

Total U.S. Travel Market, Year-Over-Year Change, 2007-2013

Total U.S. Travel Market by Segment, 2010

Leisure Travel Booking Channels, 2008 - 2010

Total U.S. Travel Market by Channel, 2010 and 2013

U.S. Travel Market, Year-Over-Year Channel Change, 2009-2013

U.S. Online Leisure/Unmanaged Business Travel Market, 2009-2013 (US$B)

Online vs. Total Travel Market, Year-Over-Year Growth Rates, 2009-2013

U.S. Online Leisure/Unmanaged Business and Total Travel Gross Bookings, 2009-2013 (US$B)

Online Travel Penetration of Total Travel Market, Global Markets, 2009-2013

U.S. Online Leisure/Unmanaged Business Travel Market by Segment, 2009-2013 (US$M)

Total U.S. Online Leisure/Unmanaged Business Travel Market by Segment, 2010 and 2013

Online Leisure/Unmanaged Business Growth Rates by Segment, 2010 and 2011

U.S. Online Leisure/Unmanaged Business Travel as Percentage of Total Market: Online Penetration by Segment, 2009-2013

U.S. Online and Total Leisure/Unmanaged Business Travel Gross Bookings, Growth Rates and Total Online Penetration, 2009-2013 (US$M)

Channel Market Share of Online Gross Bookings, 2009-2013

Channel Market Share of Online Gross Bookings, 2009 and 2013

Channel Market Share of Online Revenue by Segment, 2009-2013

U.S. Online Leisure/Unmanaged Business Travel Market by Channel, 2009-2013 (US$M)

U.S. Internet Leisure/Unmanaged Business Gross Bookings, 2009-2013 (US$M)

Annual Change in Revenue Passenger Enplanements and Passenger Revenue for U.S. Airlines, 2008-2010 and 1H11

Annual Change in Revenue Passenger Enplanements and Passenger Revenue for Low-Cost and Network Carriers, 1H11

Reported Airline Ancillary Revenue and Share of Total Scheduled Passenger Revenue, 2006-2010 (US$M)

American Airlines Capturing Passenger Details Earlier in the Shopping Funnel and Serving Up Trip Options Before Review and Payment


MARKET SIZE AND FORECASTS Phocuswright has been tracking the financial results of the online travel industry since 1998. This report's estimates and forecasts cover U.S.-based travel businesses, including travel suppliers (airlines, hotels, car rental companies, packagers, railways and cruise lines) and online travel agencies. The total market size includes sales of non-U.S. travel suppliers transacted via U.S.-based OTAs. All figures are in U.S. dollars unless otherwise stated. Both leisure and unmanaged business travel services are included in the online travel market size and forecast figures. Unless otherwise indicated, all online gross bookings and share figures refer to leisure/unmanaged travel. Unmanaged business travel refers to all air, car and hotel expenses associated with business travel in firms that do not have travel policies dictating the channel, type of travel, supplier or fare/rate uses. Corporate online booking systems such as Sabre Holdings/GetThere and Amadeus/eTravel are excluded from this analysis. Phocuswright builds its estimates and forecasts from discussions with more than 80 travel executives regarding their companies' Internet sales, marketing and technology investments, challenges, strategies and expectations. Their responses have been vetted and aggregated to determine market size for supplier websites and OTAs. Phocuswright also reviewed data from Securities and Exchange Commission documents, company reports, and select third-party data sources. Figures for 2009-2010 are based on actual company results. Projections for 2011-2013 are based on company interviews, consumer research and market developments. Phocuswright also considers historical growth and economic trends when developing its forecasts. Estimates and projections are for gross bookings - the retail value of travel sold over the Internet - after cancellations. Figures for airlines are based on flown (passenger) revenue. Hotel figures are based on room revenue. Figures for car rental are based on domestic U.S. revenues, excluding insurance replacement revenue. Figures for cruise lines and tour operators are based on U.S. outbound passenger revenue. Figures for rail are based on passenger ticket revenue. Where possible, travel that is researched online but booked offline using a toll-free telephone number provided on the website is excluded from online gross bookings figures. Total travel figures (online and offline) are used to determine Internet penetration for each market segment. Total travel figures are either derived from third-party sources or are Phocuswright estimates. Note that figures listed in tables do not always add precisely to column totals due to rounding. CONSUMER TRAVEL AND BEHAVIORAL INFORMATION Phocuswright fielded an online consumer survey January 19-25, 2011, through Global Market Insite, Inc., targeting the general U.S. population that has Internet access and travels for leisure. To qualify for participation in the study, respondents had to indicate that they had taken at least one leisure trip at least 75 miles from home in the past 12 months that included paid lodging and/or air travel. An additional screener required consumers to have played active roles in planning their leisure trips. Respondents who qualified are referred to as "U.S. travelers." The term "lodging" is used in this report to refer to the broad range of paid accommodations - hotels and other nightly-priced lodging products - as well as timeshares and vacation rentals. Phocuswright received 2,536 qualified responses, and the weighted respondent pool can be projected with confidence to the U.S. adult population with Internet access. A total of 6,064 respondents were surveyed to obtain baseline metrics about travelers and nontravelers within the general online population. The error interval for analysis of the U.S. traveler population is +/-1.95% at a 95% confidence level. Significant differences noted in this report were identified at a 95% confidence level.