Hotel Online
News for the Hospitality Executive


PhoCusWright Reports that U.S. Online Travel Penetration Stalls:
Corporate Market Leads Recovery

Offline Travel Distribution Will Grow Faster Than Online for the First Time
Since the Rise of Online Travel

November 11, 2010 - Corporate travel led the U.S. travel market's 2009 plummet and is now fueling its recovery, in a dramatic swing that is temporarily disrupting the overall market's shift to online channels. In 2010, offline travel distribution will grow faster than online for the first time since the rise of online travel, according to PhoCusWright's U.S. Online Travel Overview Tenth Edition. The U.S. online leisure/unmanaged business travel market will grow 8% in 2010 while the traditional travel agency/travel management company (TMC) channel, powered by the business travel rebound, will jump 15%.

"Corporate travel's wild ride over the past two years has caused an unusual shift in trend, with online channels growing more slowly than the total U.S. travel market for the first time," says Douglas Quinby, PhoCusWright senior director, research. The phenomenon reflects the peculiar dynamics of this recession, but the reversal will be short lived. "In 2011, the long-term arc of continued shift from offline to online channels will resume," Quinby adds.

Following an historic 15% annual decline in 2009, the U.S. travel market in 2010 will regain over half of what it lost, jumping 10% to surpass US$255 billion. Yet the recovery will be uneven and slow, with 2010 travel sales still falling short of 2006 levels. The total market will continue to rise annually over the next two years, finally reaching record highs again in 2012.

Online leisure and unmanaged business travel fared better than the overall travel market in 2009, falling just 5%, as travelers sought bargains online. Led by online travel agencies, 2010 gains will push online travel ahead of record 2008 levels. Yet online leisure/unmanaged business penetration of the total travel market will be stagnant at 38% in 2010.

PhoCusWright projects a restrained recovery through 2011, varying by travel segment and distribution channel. Purchase PhoCusWright's U.S. Online Travel Overview Tenth Edition to gain rich, actionable insight in the U.S. travel market. The report provides market sizing and forecasting through 2012 for all major travel segments (airlines, hotels, car rental, vacation packaging, cruise and rail) and key online and offline distribution channels (online travel agencies, supplier websites, and traditional travel agencies/offline supplier direct).

For futher details please visit:

About PhoCusWright Inc.

PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning and tactical decision-making.

PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior. Every day around the world, senior executives, marketers, strategists and research professionals from all segments of the industry value chain use PhoCusWright research for competitive advantage.

To complement its primary research in North America, Europe and Asia, PhoCusWright produces several high-profile conferences in the U.S. and Germany, and partners with conferences in the U.K., China and Singapore. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce.
The company is headquartered in the United States, with offices in Germany and India.


Tahnee Perry
+1 860 350-4084 x385

Also See: TRAVDEX – the travel technology event of 2010. Your competition will be there – will you? / February 2010

TRAVDEX explained. Your competition knows about it – do you? / January 2010

TRAVDEX™ and Hospitality Upgrade Partner on Travel Technology Trade Show / October 2009

PhoCusWright Selects as Demonstrator at the Travel Innovation Summit on November 17, 2009 / March 2009

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds| One-on-One |
Viewpoint Forum | Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.