Online Travel Forecasts for 2010 and Beyond

With the effects of the recession still being felt in the travel industry, one question many are asking is: how will these developments affect the prospects of online travel sites for 2009 and beyond? Well, it is quite apparent that the global economic troubles won’t end anytime soon. In fact, according to the Travel Industry Association (TIA), there will be a drop of at least 1.3 percent in leisure travel this year. This prediction is still quite optimistic because a number of research companies believe the drop will be bigger. Aside from leisure travel, business travel is down as well because companies are cutting back on costs.

Fortunately, there is a silver lining through all the doom and gloom. Travel analysts believe that online travel sales will still grow by 10.5 percent this year. Online travel sites are expected to be winners during the downturn. Around $116.1 billion will be derived from sales from the internet. The growth will mainly be driven by the shift in behavior from offline to online booking preferences.

Because of this trend, the competitiveness and even the survival of many travel companies depend on how well they manage their online marketing initiatives and distribution strategies. For 2009, over 55 percent of all travel bookings will be done through the Web. In North America alone, around 40 percent of hotel reservations will be done online.

It seems that many travel companies and organizations are on the right track. A 2008 McKinsey survey found that 91 percent of Senior Marketing Executives in the travel industry plan to maintain or focus more on online advertising by cutting back on traditional media expenses. The executives recognize that a significant number of their clients use the internet. Another benefit of online advertising includes its lower costs and measurable effectiveness.