Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations & terms
- Abbreviations
- Terms
Executive Summary
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- Travel market rebounding
- Internet connections on the rise, allowing for greater access
- Business travel trending up
- Air travel remains largest segment, but is losing ground
- Competition is tough, leading to a fight for inventory
- Adspend up
- Booking tools show promise
- Key demographics
- Growth of online booking to continue
Market Drivers
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- Travel market rebounding
- Travel expenditures
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- Figure 1: Travel expenditures in the U.S., at current and constant prices, 2000-05
- Person trips
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- Figure 2: Number of domestic, inbound and outbound person trips, 1999-2005
- Business travel trending up
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- Figure 3: Total person trips for business and leisure travel, 1998-2006
- Figure 4: Graph: Total person trips for business and leisure travel, 1998-2006
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- Figure 5: Likelihood that virtually all bookings will be completed online in five years, according to business travelers, 2004
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- Figure 6: Frequent business travelers’ use of selected travel tools, past 12 months, 2002 and 2004
- Internet use and penetration
- Increase in broadband penetration
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- Figure 7: U.S. broadband household projections, 2000-10
- Increase in household computer penetration
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- Figure 8: Household ownership of personal computers, 2001-04
- Travel among PC households
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- Figure 9: Travel planning in households with personal computers, 2002-05
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- Figure 10: Internet activities*, May-November 2004
- The online traveler
- Generational influences
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- Figure 11: American generations, 2000-10
- Figure 12: Graph: American generations, 2005-10
- Baby Boomers
- Gen X and Echo Boom
- Women
- Internet promotes last-minute travel
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- Figure 13: Last-minute travel, May 2004
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- Figure 14: Reasons for last-minute travel, May 2004
- Internet-based competition heats up
- Hotels set accreditation standards for online travel agencies
- Metasearchers improve Internet functionality
- Expanding options encourage Internet use
- Bookers vs. lookers
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- Figure 15: Travel sites used by travel planners and bookers, July 2004
Market Size and Trends
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- Figure 16: Total U.S. retail sales of Internet travel, at current and constant prices, 2000-05
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- Figure 17: Graph: Total U.S. retail sales of Internet travel, at current and constant prices, 2000-05
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Market Segmentation
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- Introduction
- Travel components
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- Figure 18: Annual revenue for the online travel insustry, by travel component, 2003 and 2005
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- Figure 19: Graph: Annual revenue for the online travel industry, by travel component, 2005
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- Figure 20: Annual revenue for the online travel insustry, by type of travel and retail channel, 2003 and 2005
- Travel products and services booked online
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- Figure 21: Travel products/services purchased online, 2002-04
- Air travel
- Hotel/motel reservations
- Greater control of third-party distributors
- Occupancy tax issues
- Car rentals
- Other travel products
Supply Structure
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- Introduction
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- Figure 22: Online travel agency market share, 2004
- Figure 23: Graph: Online travel agency market share, 2004
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- Figure 24: Unique visitors to U.S. travel sites, 2002 and 2005
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- Figure 25: Internet sites used for travel booking, 2002-04
- Internet-based Independent Travel Sites
- IAC/InterActive Corp.
- Expedia
- Hotwire.com
- Hotels.com
- Sabre
- Travelocity
- Cendant
- Orbitz
- Priceline
- Metasearchers
- Other online travel suppliers
- Brick & Mortar/Internet Travel Agency Sites
- American Express
- Carlson Wagonlit Travel
- Airlines
- American Airlines
- Delta Air Lines
- United Airlines
- Northwest Airlines
- Continental Airlines
- US Airways
- Southwest Airlines
- Hotels/Motels
- Marriott International
- Accor Lodging
- Hilton Hotels
- Cendant Corporation
- InterContinental Hotels
- Choice Hotels International
- Best Western International
Advertising and Promotion
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- Introduction
- Website/email advertising trends up
- Airlines
- Hotels
- Cruise lines
- Search engine marketing
- Website enhancements
- Best price guarantees
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- Figure 26: Travel provider best price guarantees, July 2005
- Personalized customer satisfaction
- Internet companies branching out
- Trip enhancements
- Pop culture and celebrity endorsements
- Emotional resonance
The Consumer
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- Introduction
- Number of round trips taken in the past 12 months
- Key findings
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- Figure 27: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by demographics, July 2005
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- Figure 28: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by gender, July 2005
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- Figure 29: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by age, July 2005
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- Figure 30: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by race/Hispanic origin, July 2005
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- Figure 31: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by household income, July 2005
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- Figure 32: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by marital status, July 2005
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- Figure 33: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by presence of children, July 2005
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- Figure 34: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by number of people in household, July 2005
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- Figure 35: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by region, July 2005
- Travel booked online
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- Figure 37: Mean number of trips booked online in the past 12 months, by type of travel, by demographic characteristics, July 2005
- Online travel shopping habits and preferences
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- Figure 38: Online travel shopping techniques, by age, July 2005
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- Figure 39: Online travel shopping techniques, by household income, July 2005
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- Figure 40: Online travel shopping techniques, by race/Hispanic origin, July 2005
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- Figure 41: Online travel shopping techniques, by number of people in household, July 2005
- Use of email alerts and opinions about online pricing
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- Figure 42: Opinions on online pricing and email alerts, by age, July 2005
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- Figure 43: Opinions on online pricing and email alerts, by household income, July 2005
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- Figure 44: Opinions on online pricing and email alerts, by race/Hispanic origin, July 2005
- Online travel planning and trip management features
- Pre-booking features
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- Figure 45: Use of online travel planning pre-booking features, by age, July 2005
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- Figure 46: Use of online travel planning pre-booking features, by household income, July 2005
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- Figure 47: Use of online travel planning pre-booking features, by race/Hispanic origin, July 2005
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- Figure 48: Use of online travel planning pre-booking features, by number of people in household, July 2005
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- Figure 49: Use of online travel planning pre-booking features, by region, July 2005
- Post-booking features
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- Figure 50: Use of online travel planning post-booking features, by gender, July 2005
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- Figure 51: Use of online travel planning post-booking features, by age, July 2005
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- Figure 52: Use of online travel planning post-booking features, by race/Hispanic origin, July 2005
- Destination planning features
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- Figure 53: Use of online travel and destination planning features, by age, July 2005
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- Figure 54: Use of online travel and destination planning features, by household income, July 2005
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- Figure 55: Use of online travel and destination planning features, by race/Hispanic origin, July 2005
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- Figure 56: Use of online travel and destination planning features, by number of people in household, July 2005
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- Figure 57: Use of online travel and destination planning features, by region, July 2005
- Summary
Future and Forecast
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- Future trends
- U.S. Travel trends
- Leisure travel
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- Figure 58: Travel expenditures in the U.S., at current prices, 2001-06
- Business travel
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- Figure 59: Frequent business travelers’ use of online tools, past 12 months, 2002 and 2004
- Internet travel
- Internet access to increase…
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- Figure 60: U.S. broadband household projections, 2000-10
- …leading to a more tech-savvy consumer
- Flights remain segment leader, but other products gain in popularity
- Competition is tough, and only the strong will survive
- A friendly face of technology
- Market Forecast
- Internet travel bookings
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- Figure 61: Forecast of total U.S. sales of Internet travel bookings, at current and constant prices, 2005-10
- Figure 62: Graph: Forecast of total U.S. sales of Internet travel bookings, at current and constant prices, 2005-10
- Forecast factors
Appendix: Trade Associations
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