PhoCusWright Research: All U.S. Online Travel Buyers Aren't
Created Equal
Choice of Online Travel Agency, Supplier
Sites Differs By Trip
Though supplier Web site usage in the U.S. has gained momentum, more online travelers*
still use online travel agencies than buy direct, according to the latest
consumer survey results from PhoCusWright Inc. But
channel usage varies depending on the type of traveler, the destination, and
the products being purchased. Online buyers have formed definite allegiances to
certain types of Web sites when purchasing different leisure travel components.
These findings and others are now published in a new research report from PhoCusWright Inc., The PhoCusWright
Consumer Travel Trends Survey Eighth Edition.
For example, consumers are much more likely to use an intermediary for
combination purchases** than supplier sites - three in 10 travelers who
typically buy travel online use an online travel agency for these products,
compared to one in 10 who use a supplier site. They're also more likely to use
an online travel agency to purchase add-ons such as sightseeing tours and event
tickets. Their behavior changes, however, when making individual air and hotel
purchases. When purchasing these individual components, they often rely more on
supplier Web sites than online travel agencies. Among online travelers who
usually buy travel online, supplier Web sites are the top choice for their
online hotel and car rental purchases. This suggests that online buyers still
use multiple Web sites for individual components.
Other Findings
Suppliers Offer More Luxury. Those online travelers purchasing direct from
suppliers (either online or offline) are significantly more likely to stay at
luxury accommodations than are online travel agency purchasers (39% vs. 30%).
International Travelers Still, Slightly, Prefer the Phone. While the
Internet is actively being used for domestic and international travel, offline
channels remain the most popular means for international purchases. In fact,
more than four in 10 online travelers usually purchase it offline, versus the
one third who usually purchase international travel online.
Airline Travelers Mostly Likely to Switch. Because
air is perceived as a commodity purchase, online travelers are easily swayed by
lower prices to purchase directly from an airline. This "switching"
occurs at a rate (55%) almost double that of other components such as hotels
(31%) and car rental companies (24%).
Enough About Value, Where's The Lowest Price? The
number one reason why online travel shoppers switch sites is still,
overwhelmingly, price. Half of all online shoppers (51%) switched to an
alternative method when purchasing travel for this reason. The next two most
influential forces, convenience and selection, were each at less than 10%.
*Online travelers were identified through successive waves of ICR's EXCEL
Omnibus in September 2005. Online travelers are U.S. adults who have taken a
commercial air trip in the past year, stayed at a hotel in the past year AND
used the Internet in the past 30 days.
**Combination purchasers are those purchasing more than two components (air,
and/or car and/or hotel) for the same trip in a single purchase.
About PhoCusWright Inc.
PhoCusWright Inc. is an independent travel,
tourism and hospitality research firm specializing in consumer, business and
competitive intelligence. The company conducts and publishes primary work
focused on strategic assessment and segment forecasting, offers a wide range of
custom research and strategic consulting services and produces a series of
high-profile executive conferences. With pioneering roots in sizing the
market's notable online sector, clients now emanate from six continents across
all facets of the industry's value chain and they use PhoCusWright's
information on a daily basis.
(C) 2006 PhoCusWright Inc., Sherman, CT USA
Source: Business Wire
