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New Study Says Online Travel Spending to Reach $128 billion in 2011

November 14, 2006

New Study Says Online Travel Spending to Reach $128 billion in 2011
Nov. 14, 2006 – According to a new report by JupiterResearch, "US Travel Forecast, 2006 to 2011," 38 percent of travel revenue will be made online in 2011. The report estimates that $128 billion in travel will be sold online in the United States in 2011.

"Online travel revenue will continue to grow strongly from $85 billion in 2006," said Diane Clarkson, analyst at JupiterResearch and lead author of the report. "Factors that will spur online spending are greater consumer wallet share, increasingly sophisticated products available online, and improved online compliance in business travel."

"Higher fares and an increase in people flying have driven total air revenue to $138 billion in 2006, with $49 billion of that spent online. JupiterResearch forecasts that this figure will grow to $72 billion in 2011. Additionally, hotels will continue to see a shift to online sales as more travelers shift from hotels’ telephone reservations to their websites," stated the company.

"This brisk growth in online travel revenues is accompanied by a continued shift of market share in favour of supplier sites," said David Schatsky, president, JupiterKagan.

"Online air buyers indicate a preference for airline web sites to avoid service fees and to get loyalty points. Suppliers also enjoy the perception that they will offer better service than intermediaries," said Schatsky

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