Number of U.S. online travel buyers up 17% in 2003

March 17, 2004 |

More than 35 million Americans purchased travel online in 2003, five million more than in 2002, according to The PhoCusWright Consumer Travel Trends Survey.

More than 35 million Americans purchased travel online in 2003, five million more than in 2002, according to The PhoCusWright Consumer Travel Trends Survey Sixth Edition, a new report that examines online travel shopping and purchasing behaviors. Findings reveal that the U.S. online travel market is not yet near saturation as travel shopping and buying continue to shift from offline to online channels.

However, the battle for online consumer wallet share between channels is more intense than ever for several reasons: consumers are taking fewer trips overall, purchase decisions are more complex, and hybrid (online/offline) shopping is more prevalent. Online travel buyers are as likely to purchase from a supplier (online and offline) as an online agency.

Suppliers now represent more than one-third of the airline and nearly one-fourth of the hotel Web sites that are most often used for online travel buying.

Dynamic packaging options and tools, as well as other segmented marketing approaches, will be the keys to success, given the increasing sophistication of today’s online travel buyer. More than three-quarters of those who made a combination purchase online created their own air, car and hotel packages by selecting the components separately, rather than opting for the convenience of pre-packaged options. However, 59% of those surveyed for this report say they are interested in purchasing packages online in the future - an open invitation for upselling and cross-selling strategies.

Other key findings from the report include:

- One-third of online travelers are not loyal to specific Web sites for leisure purchases, and these disloyal consumers are more likely to consult with suppliers (online or offline) rather than online travel agencies.

- In 2003, 45% of online travel buyers purchased all of their travel online.

- When purchasing air, 93% of online travelers visit two or more Web sites before making these price-driven decisions. Only 69% shop multiple Web sites for a hotel room.

Report findings are based on interviews with 504 “online travelers” in the U.S. in fall 2003. Online travelers are adult Americans who have flown by commercial airline in the last year and used the Internet in the last month. There are 54 million online travelers in the U.S. - one-fourth of the U.S. adult population. Of this group, 65% purchased travel online in 2003.