The online travel market is still going strong in the
U.S., despite wider challenges such as higher fuel costs, a
new study has shown.
The market is expected to hit $68 billion in 2005, a
notable jump from the $57 billion recorded last year,
JupiterResearch said in a study released Thursday. The
growth is due to enhanced inventory, an increase in the
number of passengers, and competitive prices on flights,
cars, cruises and hotels, the market research firm said.
Jupiter expects that
growth to continue over the next five years. By 2010, the
online travel market will surge to $104 billion, making up
34 percent of all travel spending, the research frim said.
Supplier Web sites like Orbitz continue
to grab most of the market, netting 56
percent of online travel revenue in
2005. Newer travel search engines such
as SideStep and
Kayak haven't been able to make much
of a dent in the suppliers' market
share, Jupiter said.
Overall, business travel dominates
online sales. New booking tools are
expected to boost the online business
travel market to $31.5 billion by 2010,
from $15.1 billion in 2005, Jupiter
said.
"We are seeing strong increases in
revenue across all segments of the
online travel industry," Diane Clarkson,
an analyst at Jupiter, said in a
statement. "Higher fuel costs will
remain a major challenge for the travel
industry in the near future, as the
industry struggles to compensate for
additional costs while remaining
price-competitive."
