Travel spending online continues to grow at a rapid rate. On Monday, a leading market research firm announced that travel spending will increase to $128 billion by 2011. Companies leading the charge by distributing better travel products online combined with higher consumer spending means that tourism businesses must align themselves for servicing this market in more meaningful ways.
Online travel revenues this year are expected to reach $85 billion, increasing by close to 50% in five years, JupiterResearch said. By 2011, 38% of travel revenue will come from the Web.
Diane Clarkson, JupiterResearch analyst in a statement said “Factors that will spur online spending are greater consumer wallet share, increasingly sophisticated products available online, and improved online compliance in business travel.”
What’s most important to note is JupiterResearch stated that hotels will continue to see a shift to online sales as more travelers shift from hotels’ telephone reservations to their websites as well as seeing a shift in buyers’ preference from third-party Web sites to those of the actual suppliers.
