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Online security fears boost high street sales
Traditional travel agents are winning the battle against their online rivals, new research shows.
As many as one in seven people would rather put their trust in high street travel agents than book a holiday online, the poll by IT services company LogicaCMG shows.
Almost one in five claim the reason they don’t book online is because they are not convinced that travel companies keep their financial and personal details secure.
But more than half (51%) would be persuaded to book online if there were larger discounts offered. One in 10 would be further encouraged to book online if there was a simpler transaction process.
The poll of 1,700 online users revealed that one in six consumers said hearing word of mouth through a friend or family member who had bought online successfully would further encourage them to buy from that brand. The findings outline the importance for companies to protect their brand from security failures, LogicaCMG claims.
The company’s principal security consultant Dave Martin said: “Over a million UK consumers have already been victims of security breaches whilst carrying out online transactions. Because of fears about internet security, more consumers are using the internet for researching than actually booking their travel online.
“This is having a major impact on travel industry profits –every phone booking can cost a company around £30 whereas an online booking can cost a company less than 75p. This is the reason why many travel companies now impose surcharges for non-internet bookings.”
The online travel market is expected to reach 17% of the total £28 billion UK travel sector by 2007, according to ABTA. Online travel is estimated to be worth £4.8 billion by 2007.
Report by Phil Davies
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