Growing online industry will still have to try harder

Growing online industry will still have to try harder: "Growing online industry will still have to try harder


Online sales continue to go up but the industry will have to compete even harder in the future to capture individual travelers, says Jeffrey Grau, eMarketer senior analyst.

'With most US travelers are already using the internet, online travel distributors will compete more aggressively for their business,' said Mr Grau.

US leisure/unmanaged business travel sales will total $78 billion this year, up over 20% from the prior year, according to Mr Grau's study called 'Online Travel in the US: Pursuing Customer Loyalty.'

Online travelers are an 'affluent and highly educated segment' of users who visit multiple sites to learn about destinations, find the best rates and book reservations,' he said.

These travelers are technology savvy and less price sensitive than general leisure travelers, he added.

'Online travelers will increasingly rely on social technologies such as RSS, blogs, customer reviews and wikis to plan trips,' he said.

The strong economy and more enthusiastic attitudes about flying have fueled a recent surge in spending, but a softening economy and high energy costs could depress travel spending in the near future, according to Mr Grau. "