Online Travel Is Going Places

Online Travel Is Going Places: "Online travel will comprise 33% of all travel bookings by 2006, according to a PhoCusWright report released last week.
Online travel revenues will increase by 34% to reach 52.8 billion in 2004, compared to $39.4 billion in 2003. This represents a large increase from 1998, when early online travel sites accounted for just $3 billion in revenues, but still a far cry from the $120 billion worth of online travel revenues that come in through the phone...

While the pioneers of the online travel market, including Sabre (owner of Travelocity), Microsoft (spun off Expedia) and Preview Travel (bought by Sabre) struggled through early losses to lead the market today, competition from other travel sites like Orbitz, Hotwire and CheapTickets, as well as from the airlines, rail and rental car companies themselves, is helping the market explode. Meanwhile, hotels, travel agencies and tour companies are still just dipping their toe into the market, trying to find their own model, and still relying on third-party sites.

Worldwide, growth is still slow in Europe and Asia, but as the US market becomes settled and the best business models are established, and as young people used to e-commerce become prime travel bookers, those regions should see online travel markets emerge. "