Online travel sales totaled $68 billion
last year, which was 27% of total travel revenue, according to
PhoCusWright. But thats nothing compared with whats projected for
expects that online travel revenue will
total $104 billion in 2010, accounting for 34% of total travel
Part of that
projected $36 billion increase in online sales will be due to the
growing number of new users going online.
Currently, 67% of
U.S. residents are plugged into the Internet; that percentage is
expected to grow to 73% by 2009, according to research firms
Pyramid Research, IDC and Economic Intelligence.
The U.S. is
expected to be on par with Japan in that regard.
Meanwhile, 52% of
people in the U.K. have access to the Internet; by 2009, 68% are
expected to have access.
In comparison, only
9% of people in China have Internet access; that percentage is
expected rise five points by 2009.
That may not seem
like much, but such an expansion in China would add 68 million
people to the global online marketplace, said Deloitte and New York
University in their report titled Hospitality 2010.
implementing an online strategy for emerging markets such as China
and India will be critical in maximizing direct bookings by 2010,
according to the report.
The challenge for
suppliers in the hospitality industry is to drive bookings through
their own Web sites rather than through those of online travel
agencies, said Deloitte and NYU.
As direct bookings
cost suppliers less, pulling more customers to their online
distribution channels remains a key focus, according to the report.
To stay ahead, hotel operators need to be innovative and find ways
to outsmart the intermediaries next move.
information is crucial, according to Deloitte and NYU.
With the Internet
now becoming the first touch point between the guest and the hotel,
CRM (customer relationship management) strategies will need to
engage the guest of 2010 and capture personal data, said the