According to a study commissioned by ETTSA (European Technology and Travel Services Association), Online Travel and the technology that powers travel distribution are maintaining strong growth prospects even in spite of tough economic conditions. (Article courtesy : EyeforTravel News)
As per this study, during the dramatic economic recession period in 2009, there was dip of 10 % or € 26 billion in sales in the European travel market. However online travel sale grew in 2009 – 2010 and is expected to grow again in 2011.
Online travel represents a relatively bright spot on the European travel landscape. Internet booking channels markedly outperformed the broader industry from 2006 through 2009, posting sales gains every year as more consumers turn to the Internet for shopping and booking.
Some other interesting points from this study.
Online travel sales have grown significantly in the last decade, and their market share is now one third of all travel sales in the EU.
OTAs have been star performers, with 6% growth in 2009 despite the recession. They are expected to nearly double their share of total travel sales to 11% by 2011 (from 6% in 2006).
The OTAs are growing particularly fast in the emerging economies of Central and Eastern Europe, and will become even more important as travellers broaden their demand for regional and international travel.
The GDSs are integral to the OTA business model. Most OTAs today rely on a GDS to access and book flights, rail, hotels, cars, packages, and cruises.
The GDSs represent one fifth of total travel sales in Europe. This is a slight decrease over recent years, mainly attributable to the growth in direct sales on airline websites.
Western Europe represents about 90% of total travel sales in the EU, and the EU NE12 (Member States that joined in 2005 and 2007) represent 10%. Central and Eastern Europe have experienced stronger growth than Western Europe, however, in both total travel sales and online travel sales.
Although the European travel industry saw a 10% decline in revenues in 2009 due to the global economic recession, a restrained recovery is expected for the years to come, with 1-2% growth predicted for 2010 and 2011.
Author: Anup Ravindran
Anup works as Project Lead in Teknokraaft and heads our OTA team.