Charuta Fadnis

Europe’s economy continues to recover from the recession. Thanks in part to increased consumer spending, the region’s travel industry reached new heights in 2015, driven by exceptional growth in the online market. Phocuswright's European Online Travel Overview Eleventh Edition provides comprehensive analysis, sizing and forecasts for Europe's total and online leisure and unmanaged business travel markets. The report examines key segments and channels, and also includes access to dedicated reports focusing on the following six individual European travel markets: France, Germany, Italy, Scandinavia, Spain and the U.K.

The French travel market got back on the road to recovery in 2015. Fueled largely by online travel gains, gross bookings were projected to grow 2.9%, reversing the previous year’s losses. With the exception of a nearly flat performance among tour operators, all segments are displaying moderate growth. Despite continuing economic and political challenges – and lingering uncertainty in the aftermath of the most recent terrorist attacks in Paris – the overall sentiment is positive.

Scandinavia’s economic recovery and strong Internet adoption are spurring gains in the region’s travel market. Following a decline in gross bookings in 2014, moderate growth in 2015 and for the next several years will drive total travel revenue to €15.6 billion by 2017. Online bookings will lead the way, including the mobile channel, which by 2017 will account for more than 20% Scandinavia’s of online travel revenue.

Rising consumer confidence in Germany is contributing to notable gains in travel, and by 2017, Europe’s largest travel market will approach €60 billion in revenue. While online travel penetration in Germany still lags the European average, the Internet is becoming a critical travel research and booking tool. In 2015, Germany’s online travel bookings are projected to jump 9%, driven in part by advances in mobile bookings across all segments.

Following years of austerity and fiscal turmoil, Spain has emerged as a darling among European economies. A revitalized travel industry, buoyed by consecutive years of record-breaking inbound tourism, is boosting employment and breathing new life into the country’s vacation hotspots. The Spanish travel market is projected to climb 7% in 2015, with similar annual advances through 2017.

With Italy’s economy finally heading into positive territory, and consumer confidence rising as a result, there is good reason to be optimistic about the future of the country’s travel market. Gross bookings increased 1% in 2014, and will improve another 2% in 2015. Every travel segment will see revenue growth in 2015 – with the exception of Italy’s traditional airlines, which continue to struggle in the face of strong competition from low-cost carriers (LCCs) and foreign airlines.

The U.K. travel market has performed well in 2015, as both the local economy and global markets gain momentum. Bolstered by an upbeat economic outlook and accelerated domestic consumer spending, suppliers are responding to an uptick in demand by investing in new facilities, products, services and online strategies. Despite pressure from both traditional competitors and disruptive newcomers, U.K. travel suppliers across segments are expected to grow through 2017.

The Middle East travel market is poised for enormous growth in the next three years, both online and off. High Internet penetration, improving technology infrastructure and a young population with an appetite for travel make the region very well-positioned for expansion. This report provides sizing and analysis of the online and total leisure travel markets in the Middle East, as well as regional projections through 2017, including distribution dynamics, technology trends shaping the market and more.

In the years since smartphones first disrupted the travel market, companies have made great strides in offering mobile functionality that makes the travel process more seamless. While corporate travel initially lagged leisure in mobile development, the industry has moved quickly to provide business travelers with better mobile tools, features and functionality. To optimize their investments, companies must understand how business travelers use their mobile devices, both for work and for play. This report offers travel managers, suppliers and intermediaries key insights into business traveler behavior in relation to mobile devices, including general behavior, device adoption, future purchase intentions, participation in social media and more.

Just as economic conditions across the U.S. and Europe have impacted consumers’ decisions about whether to travel and how much to spend, evolving digital habits have influenced how travelers discover, research and buy travel. With more and more information available online, one of the key challenges for travelers is to find sources they trust. This report examines the leisure travel destination selection process and provides insight into key motivating factors, preferences regarding offline and online information sources, and websites and apps used by travelers in the U.S., France, Germany and the U.K.