Internet Travel Booking - US - September 2005

Table of Contents

• Introduction and Abbreviations
• Introduction
• Other relevant reports
• Definition
• Abbreviations & terms
• Abbreviations
• Terms
• Executive Summary
• Travel market rebounding
• Internet connections on the rise, allowing for greater access
• Business travel trending up
• Air travel remains largest segment, but is losing ground
• Competition is tough, leading to a fight for inventory
• Adspend up
• Booking tools show promise
• Key demographics
• Growth of online booking to continue
• Market Drivers
• Travel market rebounding
• Travel expenditures
  • Figure 1: Travel expenditures in the U.S., at current and constant prices, 2000-05
• Person trips
  • Figure 2: Number of domestic, inbound and outbound person trips, 1999-2005
• Business travel trending up
  • Figure 3: Total person trips for business and leisure travel, 1998-2006 Figure 4: Graph: Total person trips for business and leisure travel, 1998-2006
  • Figure 5: Likelihood that virtually all bookings will be completed online in five years, according to business travelers, 2004
  • Figure 6: Frequent business travelers use of selected travel tools, past 12 months, 2002 and 2004
• Internet use and penetration
• Increase in broadband penetration
  • Figure 7: U.S. broadband household projections, 2000-10
• Increase in household computer penetration
  • Figure 8: Household ownership of personal computers, 2001-04
• Travel among PC households
  • Figure 9: Travel planning in households with personal computers, 2002-05
  • Figure 10: Internet activities*, May-November 2004
• The online traveler
• Generational influences
  • Figure 11: American generations, 2000-10 Figure 12: Graph: American generations, 2005-10
• Baby Boomers
• Gen X and Echo Boom
• Women
• Internet promotes last-minute travel
  • Figure 13: Last-minute travel, May 2004
  • Figure 14: Reasons for last-minute travel, May 2004
• Internet-based competition heats up
• Hotels set accreditation standards for online travel agencies
• Metasearchers improve Internet functionality
• Expanding options encourage Internet use
• Bookers vs. lookers
  • Figure 15: Travel sites used by travel planners and bookers, July 2004
• Market Size and Trends
  • Figure 16: Total U.S. retail sales of Internet travel, at current and constant prices, 2000-05
  • Figure 17: Graph: Total U.S. retail sales of Internet travel, at current and constant prices, 2000-05
• Market Segmentation
• Introduction
• Travel components
  • Figure 18: Annual revenue for the online travel insustry, by travel component, 2003 and 2005
  • Figure 19: Graph: Annual revenue for the online travel industry, by travel component, 2005
  • Figure 20: Annual revenue for the online travel insustry, by type of travel and retail channel, 2003 and 2005
• Travel products and services booked online
  • Figure 21: Travel products/services purchased online, 2002-04
• Air travel
• Hotel/motel reservations
• Greater control of third-party distributors
• Occupancy tax issues
• Car rentals
• Other travel products
• Supply Structure
• Introduction
  • Figure 22: Online travel agency market share, 2004 Figure 23: Graph: Online travel agency market share, 2004
  • Figure 24: Unique visitors to U.S. travel sites, 2002 and 2005
  • Figure 25: Internet sites used for travel booking, 2002-04
• Internet-based Independent Travel Sites
• IAC/InterActive Corp.
• Expedia
• Hotwire.com
• Hotels.com
• Sabre
• Travelocity
• Cendant
• Orbitz
• Priceline
• Metasearchers
• Other online travel suppliers
• Brick & Mortar/Internet Travel Agency Sites
• American Express
• Carlson Wagonlit Travel
• Airlines
• American Airlines
• Delta Air Lines
• United Airlines
• Northwest Airlines
• Continental Airlines
• US Airways
• Southwest Airlines
• Hotels/Motels
• Marriott International
• Accor Lodging
• Hilton Hotels
• Cendant Corporation
• InterContinental Hotels
• Choice Hotels International
• Best Western International
• Advertising and Promotion
• Introduction
• Website/email advertising trends up
• Airlines
• Hotels
• Cruise lines
• Search engine marketing
• Website enhancements
• Best price guarantees
  • Figure 26: Travel provider best price guarantees, July 2005
• Personalized customer satisfaction
• Internet companies branching out
• Trip enhancements
• Pop culture and celebrity endorsements
• Emotional resonance
• The Consumer
• Introduction
• Number of round trips taken in the past 12 months
• Key findings
  • Figure 27: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by demographics, July 2005
  • Figure 28: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by gender, July 2005
  • Figure 29: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by age, July 2005
  • Figure 30: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by race/Hispanic origin, July 2005
  • Figure 31: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by household income, July 2005
  • Figure 32: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by marital status, July 2005
  • Figure 33: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by presence of children, July 2005
  • Figure 34: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by number of people in household, July 2005
  • Figure 35: Incidence and number of personal/leisure and business round trips taken in the past 12 months, by region, July 2005
• Travel booked online
  • Figure 37: Mean number of trips booked online in the past 12 months, by type of travel, by demographic characteristics, July 2005
• Online travel shopping habits and preferences
  • Figure 38: Online travel shopping techniques, by age, July 2005
  • Figure 39: Online travel shopping techniques, by household income, July 2005
  • Figure 40: Online travel shopping techniques, by race/Hispanic origin, July 2005
  • Figure 41: Online travel shopping techniques, by number of people in household, July 2005
• Use of email alerts and opinions about online pricing
  • Figure 42: Opinions on online pricing and email alerts, by age, July 2005
  • Figure 43: Opinions on online pricing and email alerts, by household income, July 2005
  • Figure 44: Opinions on online pricing and email alerts, by race/Hispanic origin, July 2005
• Online travel planning and trip management features
• Pre-booking features
  • Figure 45: Use of online travel planning pre-booking features, by age, July 2005
  • Figure 46: Use of online travel planning pre-booking features, by household income, July 2005
  • Figure 47: Use of online travel planning pre-booking features, by race/Hispanic origin, July 2005
  • Figure 48: Use of online travel planning pre-booking features, by number of people in household, July 2005
  • Figure 49: Use of online travel planning pre-booking features, by region, July 2005
• Post-booking features
  • Figure 50: Use of online travel planning post-booking features, by gender, July 2005
  • Figure 51: Use of online travel planning post-booking features, by age, July 2005
  • Figure 52: Use of online travel planning post-booking features, by race/Hispanic origin, July 2005
• Destination planning features
  • Figure 53: Use of online travel and destination planning features, by age, July 2005
  • Figure 54: Use of online travel and destination planning features, by household income, July 2005
  • Figure 55: Use of online travel and destination planning features, by race/Hispanic origin, July 2005
  • Figure 56: Use of online travel and destination planning features, by number of people in household, July 2005
  • Figure 57: Use of online travel and destination planning features, by region, July 2005
• Summary
• Future and Forecast
• Future trends
• U.S. Travel trends
• Leisure travel
  • Figure 58: Travel expenditures in the U.S., at current prices, 2001-06
• Business travel
  • Figure 59: Frequent business travelers use of online tools, past 12 months, 2002 and 2004
• Internet travel
• Internet access to increase...
  • Figure 60: U.S. broadband household projections, 2000-10
• ...leading to a more tech-savvy consumer
• Flights remain segment leader, but other products gain in popularity
• Competition is tough, and only the strong will survive
• A friendly face of technology
• Market Forecast
• Internet travel bookings
  • Figure 61: Forecast of total U.S. sales of Internet travel bookings, at current and constant prices, 2005-10 Figure 62: Graph: Forecast of total U.S. sales of Internet travel bookings, at current and constant prices, 2005-10
• Forecast factors
• Appendix: Trade Associations
• Appendix: Research Methodology
• Consumer Research
• Greenfield Online
• Presentation & Definition
• ICR Surveys EXCEL
• Simmons National Consumer Surveys
• Technometrica TechnoExpresssm
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• Definitions
• Forecasts
• Appendix: What is Mintel?
• Mintel Group
• Mintel Reports
• Mintel Premier
• Mintel ECLIPS
• GNPD
• Menu Insights
• Comperemedia
• Brokertrack
• Mintel Services
• Applied Research
• Mintel Consulting
• POS+