Online Travel Booking on the Rise
After the 9/11 attacks on the World Trade Center, worldwide travel, especially U.S. travel, took a very big hit. People were scared to fly, so they looked for alternative vacations. When consumers did start booking flights again, many switched to online purchasing. Certain trends in the online travel industry have emerged since 2002; these trends are discussed below. The results of these trends show that eCommerce is now a large part of the travel industry and is a worthwhile investment for travel suppliers and agencies alike.

Online Purchases are Increasing
Since 2002, worldwide and continental US travel has rebounded. Before 9/11, the US travel industry was worth approximately $206 billion annually. At the end of 2004 it had almost recovered to this level, and is expected to grow by 5% in 2005. Within this industry, online travel bookings have grown from 15% of sales in 2002 to a projected 32% growth for 2005, according to PhoCusWright Inc. Forrester Research has found that approximately 30 million US households will purchase travel online in 2005, spending approximately $53 billion US.

eMarketer estimates a growth rate of 20% annually between now and 2007, and Forrester Research indicates the online travel industry in the US will be worth almost $111 billion by 2009, with 46.4 million US households purchasing travel online.

Troubles for Travel Agencies
With the increase in online bookings, many “traditional” travel agencies have been adversely affected. Plunkett Research states that in 2000, there were more than 30,000 agencies in the US; by 2003 the number had dropped to slightly more than 20,000 agencies, a overall decrease of more than 30%. Agencies have had to change how they do business: some specialize in less-well-known destinations, others have transitioned to by-the-hour “consultants,” and others have switched to online booking or call centers. Traditional agencies will continue to face troubles as more consumers switch to booking online travel.

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