JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), finds that the U.S. online travel market has experienced strong growth over the past year and forecasts that the market will reach $68 billion by the end of 2005, up from $57 billion last year, and grow to $104 billion in 2010. In the new report entitled: "U.S. Travel Forecast, 2005 to 2010," JupiterResearch details its findings, which also indicate that revenues for the travel industry have grown in 2005 as a result of increased inventory, passenger numbers and prices across the air, car, cruise and hotel industries.
"We are seeing strong increases in revenue across all segments of the online travel industry," said Diane Clarkson, Analyst at JupiterResearch. "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," added Clarkson.
Supplier Web sites continue to represent the majority of online travel sales, capturing 56% of online travel revenue in 2005. Travel search engines such as SideStep and Kayak remain relatively new and have not yet gained sizeable traction. Supplier Web sites have not yet seen their sales significantly impacted by these search engines.
A major driver of the overall growth is business travel, which is expected to grow substantially. Increasingly sophisticated managed booking tools and increased business traveler compliance with company booking policies will spur the online managed business travel market to reach $31.5 billion by 2010, up from $15.1 billion in 2005.
"We expect the online travel market to continue its strong growth over the next five years and to represent 34% of all travel spending in 2010," said David Schatsky, Senior Vice President of Research at JupiterResearch. "The online share of total travel spending in the U.S. is quite high and its lower distribution costs are an important factor in holding down expenses for the travel industry," added Schatsky.
The complete findings of this forecast are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For more information on the forecast or JupiterResearch's Travel research service please contact Kieran Kelly, Vice President of Global Sales and Client Services at 1-800-481-1212 or firstname.lastname@example.org
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