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Online travel spending on way to $128 billion
By the year 2011, JupiterResearch says, $128 billion in travel will be sold online in the U.S.
“Online travel revenue will continue to grow strongly from $85 billion in 2006,” said Diane Clarkson, analyst at JupiterResearch and lead author of the report. She added:
“Factors that will spur online spending are greater consumer wallet share, increasingly sophisticated products available online, and improved online compliance in business travel.”
Higher fares and an increase in people flying have driven total air revenue to $138 billion in 2006, with $49 billion of that spent online. JupiterResearch forecasts that this figure will grow to $72 billion in 2011.
Hotels will also continue to see a shift to online sales as more travelers shift from hotels’ telephone reservations to their website, according to the report.
“This brisk growth in online travel revenues is accompanied by a continued shift of market share in favor of supplier sites,” said David Schatsky, president, JupiterKagan.
Report by David Wilkening
David
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