In 2005 42% of all travel sale transactions in the USA (airline seats, hotel rooms, car rentals, cruises, tours and other services) will take place online, according to PhoCusWright. That’s about $94 bln worth of travel sales out of a total US travel market estimated at $224 bln 2005. By 2007, online’s share of the total will move to 55%, or $136 bln.
USA Today notes that while US airlines’ revenue grew nearly 48% to $132 bln 2004 from $89 bln in 1994, the proliferation of cheap seats caused the industry’s average revenue per available seat mile to fall to 11.7 cents in 2004 from 12.65 cents in 1994. That 7.5% drop has been a huge factor in US carriers’ more than $35 bln in losses since 2000.