Industry stats: from 2002-2005

Trent Blizzard | 9 July 2005 |

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Overall Travel Market Stats

Over 192 million North Americans are active Internet users (Nielsen) and 37 million of them have already purchased travel online.

Price, Jason and Max Starkov. Developing a Total Email Marketing Strategy.

Nearly 37 million of America’s more than 162-million active Internet users have already purchased travel online. Online travel bookings exceeded $23 billion in 2001, and are expected to reach $63 billion by 2005. (PhoCusWright)

Six in ten online travel buyers have purchased a hotel room or rented a car online.
Nearly one-third of online travel buyers say the Internet was responsible for their travel purchases last year.

Moran, Stacy. Consumer Trends: Evolution of the Online Traveler - PhoCusWright’s FYI. WiredHotelier.com 3 April 2003. Retrieved April 8, 2004 from <http://www.wiredhotelier.com/news/4015397.html>

Hoteliers are the best direct salesmen with an estimated 75% of all reservations sold directly to consumers. Online, the industry direct sales average 52% (PhoCusWright, 2002) with many hoteliers reporting less than 5%.

This year over 13% of all revenues in hospitality will be generated from the Internet. Three years from now the Internet will generate over 20% of all hotel bookings (PhoCusWright).

Roughly 52% of all online bookings in 2002-2003 will be completed directly through hotel-sponsored websites. Forrester Research confirms that people who book online prefer to use a supplier website over intermediaries.

Starkov, Max. Website Optimization - The Blueprints For A Robust Direct-To-Consumer Online Distribution Strategy. WiredHotelier.com 6 Feb. 2003. Retrieved April 8, 2004 from http://www.wiredhotelier.com/news/4014686.html

According to the 2002 PAII Industry Study, occupancy rates slipped by four percent from 2000 to 2002 (comparisons made with the same inns), and now stand at 38 percent, an average for all U.S. B&Bs. Despite the drop in demand, the average daily rate (ADR) paid by B&B/country inn guests increased during this period to $136.70. The net result was a 2.8% growth in total revenues for the B&B/country inn segment compared to declines in the hotel sector.

Soule, Sandra. Market Forecast 2004. Innkeeper News Bedandbreakfast.com Nov. 2004. Retrieved April 8, 2004 from <http://www.innkeepersonly.com/innkeepernews/November-03/index8.asp>

In 2003, 45% of online travel buyers purchased all of their travel online, according to The PhoCusWright Consumer Travel Trends Survey Sixth Edition,

PricewaterhouseCoopers estimated that the Web last year generated an extra $715 million in hotel business. But increased price competition spurred by the Web cost hoteliers $2 billion in potential revenue, meaning the Web on the whole cost hoteliers about $1.3 billion in revenue.

Only about 10% of hotels were booked online last year, according to PWC.

Hotels want to break Web site habit. Reuters, 22 Jan. 2004.

Retrieved April 8, 2004 from
<http://www.usatoday.com/travel/news/2004-01-22-hotels-web_x.htm>

Nearly 26 million U.S. households — 43 percent of Web travel households — will book leisure travel online in 2002, 12% more than in 2001. In 2002, when Web travelers will spend just under 30% of their leisure travel budgets online, leisure travel will drive $22.6 billion in revenue. By 2007, 32% more households will spend 39% of their travel budgets online, generating $49.7 billion.

Greenspan, Robyn. Travel Industry Boosted by Bargain-Hunters.

In total, 35 million Americans bought travel online in 2003, up 17% from 2002.

Moran, Stacy. Online Travel Buyers Are Divided as to Which Type of Site Gets the Sale - Supplier or Online Travel Agency - PhoCusWright’s FYI.

Company Barclaycard annual Travel in Business survey reveals a 49% rise in overall business travel bookings via the internet since 2000 when only 17% of business travelers booked travel online.

Davies, Phil. Growing online threat to business travel agents.

This year over 16% of all revenues in hospitality will be generated from the Internet (14% in 2003). Two years from now the Internet will contribute over 24% of all hotel bookings (CSFB). Forecasters predict that in 2005 Internet hotel bookings will surpass GDS bookings. An estimated 53%-54% of all Internet bookings in hospitality will be direct to consumer.

Starkov, Max and Jason Price. 2004 the Year of Direct Online Distribution - Now is the time to fight back with a smart Direct-to-Consumer Internet Strategy. WiredHotelier.com 3 Feb 2004. Retrieved April 8, 2004 from

<http://www.wiredhotelier.com/news/4018427.html>