Owning a Tourism Business is awesome

3 May 2007

US Online Travel: The Threat of Commoditization

It is still far from a tailspin, but the US online travel industry is undergoing a revolution that is redefining the rules of engagement between travel firms and their customers. Internet-savvy consumers are exploiting powerful online resources to find new travel products and pricing options.

The US Online Travel report analyzes the progress of this still growing, but slowing, bellwether Internet sector.

The good news: eMarketer estimates that online consumer travel sales hit $79 billion in 2006 and will grow at a 17% annual rate before reaching $146 billion in 2010. While that is respectable growth, it falls short of the 28% annual growth rate posted from 2002 to 2006.

The bad news: A tighter market will exacerbate the fierce competition between online travel agencies and travel suppliers in an already commoditized market.

eMarketer Reports—On-Target and Up-to-Date

The US Online Travel report aggregates the latest data from a wide range of marketing and communications researchers with eMarketer numbers, projections and analysis to provide the information you need to make the right business decisions.

See full details here....

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