Dear Shareholders,
In the interest of bringing the latest research report and findings within the travel industry, following are the key findings of Resarch And Markets on the Online Travel industry for 2007.(The same can be viewed at the following link http://www.smartbrief.com/news/ASTA/...
AGORACOM Investor Relations
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The U.S. travel market entered a new era of channel balance in 2007. This was the first year that more travel was purchased online than offline in the U.S. While online travel continues to grow faster than the market as a whole, the maturity of the channel has led to a significant slowdown in growth compared to the torrid pace of the past.
While online sales continue to grow, the pace is not the same for certain segments of the market. Depending on the channel (online travel agency or supplier-direct Web site) or the product (point-to-point air, chain hotel, cruise, complex itineraries), online is still in various stages of development. Consumer marketing is more complex due to search, social media and other Internet outlets that need to be more closely aligned with a holistic marketing program.
This report continues the detailed tracking of the largest online travel market in the world, which PhoCusWright has sized and analyzed by segment and channel since 1999.
Key Findings Include:
* While suppliers are gaining share in most segments (air, car, hotel), online travel agencies are competing via packaging and add-ons, corporate tools, distressed inventory, international expansion in Europe and Asia, independent hotel properties, U.S. chains, and cross-product and provider customer service initiatives.
* Online travel agencies are lagging in integration of Travel 2.0 tools and will need acquisitions or partnerships to catch up even as they labor to develop targeted marketing based on their massive stores of consumer behavior data.
* Alternative monetization of traffic will in the medium term reduce the overall significance of gross bookings to the bottom line for online agencies.
* Search and metasearch continue to work in favor of suppliers as they drive traffic to their Web sites to book after their comparative shopping experience.
* All travel companies must embrace the consumer desire to shift among online and offline channels.
* Packaging components such as air, car, hotel plus local tours, spa treatments, golf, events and other destination services allows hotels and online travel agencies to upsell the customer and combat commoditization. To date, this is best done by online travel agencies, although hotels are increasing their efforts.
