SHERMAN, Conn. -- The European Online Travel Marketplace Report,
published by the research firm PhoCusWright, estimated that the
European on-line travel market will more than triple from an
estimated $2.9 billion worth of bookings in 2000 to more than $10.9
billion in 2002.
Sound like a lot?
The numbers might look impressive, but according to Lorraine
Sileo, vice president, information services, "On-line travel in
Europe is just a fraction of the entire European travel market --
1% or under.
"Even the major airlines claim that on-line [bookings] represent
only 1% of their total bookings, although they expect that
percentage to grow to 20% to 50% in [the next] three to five
In contrast, in the U.S., Sileo said that on-line bookings
comprise 7% of travel revenue.
The report contained several findings that create a distinct
picture of the on-line travel business in Europe, including the
following:Unlike in the U.S., where agencies reign in the on-line travel
world, supplier Web sites dominate the on-line travel market in
Airlines, tour operators, hotels, railways and car rental
companies represented 74% of the European on-line travel market in
2000.Airline Web sites and tour operator sites controlled 28% and
27%, respectively, of the market in 2000. On-line travel agencies
earned a 26% market share; railways, 9%; hotels, 7%, and car rental
earned the top spot among on-line booking agencies in Europe, with
$150 million in projected gross bookings.
The acquisition of Degriftour by Lastminute.com made
Lastminute the second-largest on-line travel agency in Europe, with
estimated combined gross bookings of $116 million.
All of these companies are based in the U.K., where laws are the
most conducive in Europe to on-line commerce, said Sileo.Airline Web site sales totaled $810 million in 2000, and $382
million of airline tickets were sold through on-line travel
The two airlines with the most on-line bookings -- EasyJet and
Ryanair -- book 100% of their Internet sales via their own Web
sites. Each sells at least half of all its tickets on line.
For additional information, contact PhoCusWright at (860)
350-4084, or log on to www.phocuswright.com.