US online travel to generate $68 bln in 2005, $104 bln in 2010
JupiterResearch finds that the US online travel market has experienced strong growth over the past year and forecasts that the market will reach $68 bln by the end of 2005, up from $57 bln 2004, and grow to $104 bln in 2010. 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 bln by 2010, up from $15.1 bln in 2005.