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Despite rising oil prices and airfares, aggregate gross bookings of the three public U.S. OTAs – Expedia, Orbitz and Priceline – made notable increases in 1Q12. However, near-term headwinds lie in wait.
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Despite the economic difficulties of 4Q11 – rising fuel prices and airfares, a stronger U.S. dollar, and ongoing financial drama in Europe – online travel agencies delivered mostly strong performances, with solid growth in international markets. The outlook for 2012 is exciting but uneven, with OTAs fighting hard for U.S. share and making gains in Europe.
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While online travel agency growth is slipping in more mature markets, it is gaining strength in emerging markets. Local OTAs are taking the lead in the latter – but don't count global OTAs out yet, as they are investing heavily in these markets in efforts to catch up.
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Online travel is no longer the domain of wealthy nations with pervasive computer and Internet access. It is universal. Any traveler with a computer, tablet or mobile device can make an online transaction - from just about anywhere. This publication compares total and online leisure/unmanaged business travel gross bookings in the U.S., Europe, Asia Pacific and Latin America.
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While 2010 brought needed relief to Europe's online travel industry, growth for the year will be minimal. The recession slashed a wound across European nations that will not heal overnight - but it also pushed more travelers online to search for deals, boosting penetration in historically lagging markets. PhoCusWright's European Online Travel Overview Sixth Edition provides in-depth analysis and sizing for the total market and online leisure/unmanaged business travel, including trending by segment and channel for Europe overall as well as six key individual markets - France, Germany, Italy, Scandinavia, Spain and the U.K.
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