54% of US travel to be booked online in 2007
According to PhoCusWright, 2007 for the first time transactions on the Internet will account for over half (54%) of all US travel bookings. While the US represented just one third of total online and offline travel bookings of the combined North America, Western Europe and Asia Pacific markets in 2005, the US share of online bookings was over 60% of all online bookings. Growth of dynamic packaging (the ability of consumers to easily combine airline, hotel, rental car and other product purchases online) is projected to slow significantly from 51% in 2005 to 18% in 2008. This trend is partly attributable to the current tight supply of bulk airfares and merchant hotel rates available for packages, thanks to higher load factors and occupancy as suppliers enjoyed strong sales during the recent robust economy. Hotels will be the fastest growing segment online, surpassing air travel, which until 2006 had long been the fastest growing product segment.