Online Travel — A $146 Billion Market By 2010
According to a report by
eMarketer, U.S. customers spent $79 billion on online travel last
year. And the research firm predicts that spending in this category
will grow at around 17% a year for the next five years, totaling
$146 billion by 2010.
One of the most notable recent
changes is the explosion of social networking sites, where people
can share information and itineraries, post travel blogs, and upload
videos of their trips.
The report disclosed that online
travel agencies are facing increasing pressure, as consumers who use
social networks now offer fellow travelers their own advice and
recommendations. And that’s in addition to the pricing pressure from
airlines and hotels, which sell directly to consumers from their own
web sites.
Travel providers, such as online
agencies Expedia and Travelocity, will have to be more creative in
their packages the report concluded...and be able to move “from a
service model based on mass consumption, to one centered on creating
customized packages for groups of travelers with unique interests
and needs.”