JupiterResearch, an analyst of online
business trends, predicts in a new report that $128 billion worth
of travel will be purchased online in 2011, up from $85 billion in
2006. Jupiters U.S. Travel Forecast, 2006 to 2011 also notes an
increasing share of online business is shifting from retailers to
The report predicted
that 38% of all travel will be purchased online by 2011, up from
30% in 2006.
Jupiter based its
predictions on the continuation of the current growth rate, which
is 9% compounded per year.
along with increases in inventory and load factors, will drive
total airline revenue to $281 billion in 2006, according to the
leisure and business travel.
It estimated 2006
airline ticket sales will total $138 billion, $49 billion of which
will come through online bookings. Jupiter predicted that number
will grow to $72 billion by 2011.
The forecast noted an
ongoing shift in market share on travel bookings from online
retailers to supplier sites. Supplier sites now account for 57% of
all online leisure travel revenue. Jupiter expects that percentage
to grow to 62% by 2010.
A factor in that
shift is the growing popularity of travel metasearch engines, or
scrapers, such as Sidestep and Kayak. The study found that scrapers
remain a relatively small factor in the online travel market, but
they tend to drive traffic to supplier sites instead of to retailer
To compete, retailers
have to meet consumers expectations for best prices and high
functionality, the report said.
On the business
travel side, the study found little shift from unmanaged to managed
business travel in 2006, but among companies that are managed the
movement has been toward stricter management. That is, more
companies within the managed travel sector are requiring strict
compliance to the use of designated travel partners.
frequent business travelers expressed more satisfaction with price
and service than their strictly managed counterparts.