US $2,250.00

PhoCusWright's European Online Travel Overview Third Edition

July 2007
USD $2,250 CAD $2,258 GBP £1147 EUR €1448

Global travel companies flocked to the European market during the post-Sept. 11, 2001 rebound in search of speedy scale and sustainable growth. These benefits were promised by the largest regional travel market in the world backed by some of the strongest travel and Internet infrastructure elements in the world. And growth is what they tapped into, alongside myriad local market players in both the intermediary and supplier arenas.

PhoCusWright's European Online Travel Overview Third Edition presents the findings from PhoCusWright research on the European online travel markets in 2006 and 2007. This effort was undertaken as a multi-part project to assess the European travel market as a whole with in-depth analyses of five individual European markets: France, Germany, the U.K., Italy and Spain. These comprise the third edition of PhoCusWright's European market research, and this report covers overall European market trends. Data presented in the report is actual for 2004-2006 and projected for 2007-2008.

Report Overview Table of Contents Methodology

REPORT OVERVIEW ^top

This complete report includes an overview of the European market as a whole PLUS the 5 country-specific reports (U.K., France, Germany, Italy and Spain).

Providing guidance in the highly fragmented European market.
What business opportunities does the marketplace offer to increase your distribution power, brand, awareness and profitability?
The most accurate, in-depth look at market size, forecasts and analysis for the European market as a whole along with the U.K., French, German, Italian and Spanish travel markets and online travel markets for the years 2004-2006 (actual) and 2007-2008 (projected), by sector, segment and channel. Get informed about the local players and their importance in each of the market segments.
Who are the main players, and how can your company gain a competitive advantage?
Along with channel analysis of European online travel agency, tour operator and supplier direct sales, PhoCusWright’s European Online Travel Overview provides segment analyses (including historical and projected segment gross bookings and growth, both online and offline) for:

Airline
Hotel
Car Rental
Rail
Packages

Eliminate critical data gaps.
How does the European channel mix match your business model and is a channel shift likely?
Purchase the complete European overview on this page (including the 5 country-specific reports), or purchase the individual market report that is pertinent to your needs:

United Kingdom
France
Italy
Spain
Germany

HIGHLIGHTS FROM PhoCusWright's European Online Travel Overview
The European travel market is marching relentlessly online in the footsteps of the U.S. travel market, but while the pace may be similar, the diversity in the markets creates important differences. European online leisure/unmanaged business travel as a percentage of the total travel market approaches 25% in 2007, the level achieved in the U.S. in 2004. Yet the individual markets of Europe, in particular the top five - U.K., Germany, France, Spain and Italy - display the variety of paths online that developing e-commerce economies take. PhoCusWright has undertaken a country-by-country research effort covering these five markets and the European market as a whole, resulting in six new reports.

Cultural, technological, strategic and fiscal forces have shaped the online markets of each of these five largest European countries, and this new set of studies delves into the drivers and the likely effects of these forces. For example:

In Germany, where Internet access is widespread and online purchasing is well established despite a relative aversion to credit card usage, travel purchase incidence is extremely low among both online buyers and frequent Internet users.
In the U.K., where Internet access is ubiquitous and online purchasing routine, more than twice as many online buyers and regular Internet users buy travel than in Germany.
Italy and Spain share similar Web connectivity profiles, but a much higher proportion of regular users of the Internet in Spain purchase travel online than in Italy.

Other highlights and points of differentiation on these markets include:

In the U.K., online buying patterns and behaviors most closely resemble those of the U.S., but the powerful tour operators have entered the field in force, and a convergence of business models with online travel agencies is heralding a reshaping of the online business model that defined the U.S. market.
In France, monolithic suppliers, a lack of local low-cost carriers and a relatively small outbound market has tempered the growth of the online segment.
In Spain and Italy, two of the largest leisure destination draws anywhere, the travel market migration to the Internet has lagged behind that of the U.K., Germany and France. Less broadband access and fewer habitual Internet users are primary factors in the slower online development of these countries’ online travel markets, as are local cultural behaviors.

TABLE OF CONTENTS ^top

Section 1: The European Online Travel Marketplace
Introduction Europe Market Assumptions
Growth Factors
Trends in European Online Corporate Travel
Conclusions

Section 2: The French Online Travel Market
Overview E-Commerce and Internet Penetration
Size of the Market
Online Travel Agencies
Suppliers
Car Rental
Tour Operators
Conclusion

Section 3: The German Online Travel Market
Overview Key Characteristics of the German Market
Size of the German Online Travel Market
Key Factors Shaping the German Market
Online Travel Agencies
Suppliers
Conclusions

Section 4: The Italian Online Travel Market
Overview Internet Penetration and E-Commerce
Size of the Market
Online Travel Agencies
Suppliers
Hotels
Tour Operators
Rail
Car Rental
Conclusion

Section 5: The Spanish Online Travel Market
Overview Key Characteristics of the Spanish Market
Internet Usage and E-Commerce
Size of the Spanish Online Travel Market
Online Travel Agencies
Suppliers
Conclusions

Section 6: The United Kingdom Online Travel Market
Overview E-Commerce and Internet Penetration
Size of the Market
Online Travel Agencies
Conclusion

Table Listing
Table 1.1 European Online Leisure/Unmanaged Business Travel Market, Gross Bookings, Growth, and as a Percentage of Total Travel Market, 2004-2008
Table 1.2 European Online Travel Market by Channel and Sector: Offline and Online Leisure/Unmanaged Business and Corporate Gross Bookings, 2004-2008
Table 1.3 Total Online Travel Market, Market Share by Region, 2005-2008
Table 1.4 European Online Travel Market by Channel and Sector: Offline and Online Leisure/Unmanaged Business and Corporate Travel Share, 2004-2008
Table 1.5 European Online Travel Market (Leisure/Unmanaged Business) by Segment and Channel, 2004-2008
Table 1.6 European Online Travel Market (Leisure/Unmanaged Business) Gross Bookings and Share, 2006
Table 1.7 European and French Online Travel (Leisure/Unmanaged Business) Growth Rates, 2004-2008
Table 1.8 European and German Online Travel (Leisure/Unmanaged Business) Growth Rates, 2004-2008
Table 1.9 European and Italian Online Travel (Leisure/Unmanaged Business) Growth Rates, 2004-2008
Table 1.10 European and Spanish Online Travel (Leisure/Unmanaged Business) Growth Rates, 2004-2008
Table 1.11 European and U.K. Online Travel (Leisure/Unmanaged Business) Growth Rates, 2004-2008
Table 1.12 European Online Travel (Leisure/Unmanaged Business) Growth Rates by Country, 2005-2008
Table 1.13 European Online Travel (Leisure/Unmanaged Business) by Channel, 2006
Table 1.14 European Online Travel Agencies and Tour Operator (Tours Only) Online Gross Bookings and Growth, 2004-2008
Table 1.15 Pan-European Online Travel Agencies Market Share, 2004 and 2006
Table 1.15a European Online Travel Agencies Growth, 2004-2005 and 2005-2006
Table 1.15b European Online Travel Agencies Estimated Market Share, 2004-2006
Table 1.15c European Online Travel Agencies Estimated Gross Bookings, 2004-2006
Table 1.16 European Airline Total Gross Bookings and Online Penetration by Channel, 2004-2008
Table 1.17 European Traditional Airline and LCC Segment and Channel Details, 2004-2008
Table 1.18 European Hotel Gross Bookings and Online Penetration by Channel, 2004-2008
Table 1.19 European Car Rental Gross Bookings and Online Penetration by Channel, 2004-2008
Table 1.20 European Rail Gross and Online Direct 2004-2008
Table 1.21 European Tour Operator Gross Bookings and Online Penetration by Channel, 2004-2008
Table 1.22 European Total and Online Corporate Travel, Share by Market, 2006
Table 1.23 European Total and Online Corporate Travel Market by Country, Gross Bookings and Online Penetration, 2005

Table 2.1 Broadband Penetration, France, Germany, Italy, Spain and the U.K., 2001-2006
Table 2.2 The French Travel Market, 2004-2008
Table 2.3 French Online Travel Market by Segment, 2004-2008
Table 2.4 Online Travel Agencies in the French Market, Estimated Gross Bookings, 2004-2006
Table 2.5 Online Travel Agencies in the French Market, Market Share, 2005-2006
Table 2.6 French Online Supplier Direct Share by Segment, 2004 and 2008
Table 2.7 French Airlines, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 2.8 Online Direct Penetration: French Airlines, European Airlines and European Suppliers, 2004-2008
Table 2.9 French Rail, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 2.10 Online Direct Penetration: French Rail, European Rail and European Suppliers, 2004-2008
Table 2.11 French Hotels, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 2.12 Online Direct Penetration: French Hotels, European Hotels and European Suppliers, 2004-2008
Table 2.13 French Car Rental, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 2.14 Online Direct Penetration: French Car Rental, European Car Rental and European Suppliers, 2004-2008
Table 2.15 French Tour Operators, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 2.16 Online Direct Penetration: French Tour Operators, European Tour Operators and European Suppliers, 2004-2008

Table 3.1 Internet Penetration, Usage and Purchasing, Germany and EU-15, 2005
Table 3.2 The German Travel Market, 2004-2008
Table 3.3 German Online Travel Market by Segment, 2004-2008
Table 3.4 German Online Travel Agencies and Tour Operators (Tours Only) Online Gross Bookings and Growth, 2004-2008
Table 3.5 Online Travel Agencies in the German Market, Gross Bookings, 2004-2006
Table 3.6 Online Travel Agencies in the German Market, Market Share, 2005-2006
Table 3.7 German Online Supplier Direct Share by Segment, 2004 and 2008
Table 3.8 German Tour Operators, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 3.9 Online Direct Penetration: German Tour Operators, European Tour Operators and European Suppliers, 2004-2008
Table 3.10 German Airlines, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 3.11 Online Direct Penetration: German Airlines, European Airlines and European Suppliers, 2004-2008
Table 3.12 German Hotels, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 3.13 Online Direct Penetration: German Hotels, European Hotels and European Suppliers, 2004-2008
Table 3.14 German Car Rental, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 3.15 Online Direct Penetration: German Car Rental, European Car Rental and European Suppliers, 2004-2008
Table 3.16 Online Direct Penetration: German Car Rental, European Car Rental and European Suppliers, 2004-2008
Table 3.17 Online Direct Penetration: German Rail, European Rail and European Suppliers, 2004-2008

Table 4.1 Internet Penetration, Usage and Purchasing, Italy and EU-15, 2005
Table 4.2 The Italian Travel Market, 2004-2008
Table 4.3 Italian Online Travel Market by Segment, 2004-2008
Table 4.4 Italian Online Travel Agency Gross Bookings Share by Product, 2006

Table 4.5 Online Travel Agencies in the Italian Market, Gross Bookings, 2005-2006 Table 4.6 Online Travel Agencies in the Italian Market, Market Share, 2005-2006
Table 4.7 Italian Online Supplier-Direct Share by Segment, 2004 and 2008
Table 4.8 Italian Airlines, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 4.9 Italian LCCs and Traditional Airlines, Online Direct Gross Bookings as a Percentage of Total Supplier Web Site Gross Bookings, 2004-2008
Table 4.10 Online Direct Penetration: Italian Airlines, European Airlines and European Suppliers, 2004-2008
Table 4.11 Italian Hotels, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 4.12 Online Direct Penetration: Italian Hotels, European Airlines and European Suppliers, 2004-2008
Table 4.13 Italian Rail, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 4.14 Online Direct Penetration: Italian Rail, European Rail and European Suppliers, 2004-2008

Table 5.1 Internet Penetration, Usage and Purchasing, Spain and EU-15, 2005
Table 5.2 The Spanish Travel Market, 2004-2008
Table 5.3 Spanish Online Travel Market by Segment, 2004-2008
Table 5.4 Spanish Online Travel Agency Gross Bookings Share by Product, 2006
Table 5.5 Online Travel Agencies in the Spanish Market, Gross Bookings, 2005-2006
Table 5.6 Online Travel Agencies in the Spanish Market, Market Share, 2005-2006
Table 5.7 Spanish Online Supplier Direct Share by Segment, 2004 and 2008
Table 5.8 Spanish Airlines, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 5.9 Spanish LCCs and Traditional Airlines, Online Direct Gross Bookings as a Percentage of Total Supplier Web Site Gross Bookings, 2004-2008
Table 5.10 Online Direct Penetration: Spanish Airlines, European Airlines and European Suppliers, 2004-2008
Table 5.11 Spanish Hotels, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 5.12 Online Direct Penetration: Spanish Hotels, European Hotels and European Suppliers, 2004-2008
Table 5.13 Spanish Rail, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 5.14 Online Direct Penetration: Spanish Rail, European Rail and European Suppliers, 2004-2008
Table 5.15 Spanish Car Rental, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 5.16 Online Direct Penetration: Spanish Car Rental, European Car Rental and European Suppliers, 2004-2008

Table 6.1 Internet Penetration, Usage and Purchasing, the U.K. and EU-15, 2005
Table 6.2 The U.K. Travel Market, Online and Total Gross Bookings, Growth and Online Penetration, 2004-2008
Table 6.3 The U.K. Travel Market, Online and Total Gross Bookings, Growth and Online Penetration, 2004-2008
Table 6.4 Online Travel Agencies in the U.K. Market, Gross Bookings, 2005-2006
Table 6.5 Online Travel Agencies in the U.K. Market, Market Share, 2005-2006
Table 6.6 U.K. Online Supplier Direct Share by Segment, 2004 and 2006
Table 6.7 U.K. Airlines, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 6.8 U.K. LCCs and Traditional Airlines, Online Direct Gross Bookings as a Percentage of Total Supplier Web Site Gross Bookings, 2004-2008
Table 6.9 Online Direct Penetration: U.K. Airlines, European Airlines and European Suppliers, 2004-2008
Table 6.10 U.K. Airline Passenger Levels, 1995-2006
Table 6.11 Share of Travel by EEA14Passengers in the U.K., 1998 and 2006
Table 6.12 U.K. Hotels, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 6.13 Online Direct Penetration: U.K. Hotels, European Hotels and European Suppliers, 2004-2008
Table 6.14 U.K. Tour Operators, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 6.15 Online Direct Penetration: U.K. Tour Operators, European Tour Operators and European Suppliers, 2004-2008
Table 6.16 Specialist Travel Sites in the U.K.
Table 6.17 U.K. Rail, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 6.18 Online Direct Penetration: U.K. Rail, European Rail and European Suppliers, 2004-2008
Table 6.19 U.K. Car Rental, Total and Online Direct Gross Bookings and Online Direct Penetration, 2004-2008
Table 6.20 Online Direct Penetration: U.K. Car Rental, European Car Rental and European Suppliers, 2004-2008

METHODOLOGY ^top

PhoCusWright's European Online Travel Overview Third Edition presents the findings from PhoCusWright research on the European online travel markets in 2006 and 2007. This effort was undertaken as a multi-part project to assess the European travel market as a whole with in-depth analyses of five individual European markets: France, Germany, the U.K., Italy and Spain. These comprise the third edition of PhoCusWright's European market research, with an overview of Europe and five sections focusing on the individual country markets.

To evaluate the markets, PhoCusWright interviewed executives from over 100 European-based airlines, hotels, tour operators, rail companies, online travel agencies, traditional travel agencies and travel technology companies. European estimates and projections include the first 15 European Union (EU) countries as well as Norway and Switzerland.

Unless otherwise indicated, all Internet sales are based on gross bookings – that is, the total transaction value of the products sold online – for leisure and unmanaged business travel sites (i.e., consumer-facing Web sites that sell to individuals, including unmanaged business travelers purchasing outside of corporate travel policies). PhoCusWright includes in these figures bookings that are researched online but may have been completed offline as a direct result.

All financial information is based on data obtained from company interviews or publicly available financial reports. Estimates and projections are based on executive interviews, third party information, Web traffic results, economic indicators, market trends and PhoCusWright analysis.

PhoCusWright market size estimates and projections are based on the local market results of pan-European online travel agencies, the results of local online travel agencies, and total gross sales reported by local suppliers. Data is actual for 2004-2006 and projected for 2007-2008.

Non-hospitality suppliers’ online sales are assigned to the market in which the supplier is headquartered. For example, all online business generated by Lufthansa worldwide is associated with Germany, while all Air France online revenue is associated with France. Hospitality suppliers' gross bookings are based on revenues generated by properties in the country source market. Room revenue for hotels and guesthouse/bed and breakfast establishments are included.

All currencies are in European euros (€) converted at the average rate for the period they represent. References to the "travel market" are understood to cover the total travel market, and "traditional travel agency" refers to principally offline travel agencies.