Research shows online travel revenues declining

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Travel industry research firm PhoCusWright is reporting that although online travel bookings seemed recession-proof, the economic downturn is finally making an impact on the sector, and revenues are expected to decline for this year.

The company noted that the value of online leisure and unmanaged business travel bookings was likely to fall by three per cent during 2009, to $93 billion. According to PhoCusWright, this is the first year-on-year decline it has seen since beginning to track online travel in 1998.

Online leisure travel and unmanaged business travel include all bookings that are made for leisure or personal purposes and travel for business that is not regulated by a comprehensive company travel policy. Generally, those who are self-employed or working at small businesses fall into the unmanaged business travel category.

PhoCusWright has said that online travel bookings currently account for more than one-third of the total travel market, and added that the online segment is “now more or less mature and far more susceptible to broader swings in the economy.”

Although online travel bookings are expected to decline in 2009, the PhoCusWright report noted that the segment “it will still far outperform the broader travel market and return to positive growth much sooner.”

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