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PhoCusWright Releases 2008 Travel Industry Trends
(Market Wire Via Thomson Dialog NewsEdge) SHERMAN, CT, February 1 / MARKET WIRE/ --
Each January, PhoCusWright analysts assess the
global travel marketplace to produce a list of predictions about
anticipated changes in market dynamics, technology innovation and traveler
behavior worldwide. The most frequently cited trends this year: travel
metasearch and the development of mobile travel applications.
The traditional walled garden that has long plagued the telecommunications
industry is finally being penetrated, which will make application
development highly appealing. And as global travel companies expand into
Europe and Asia, mobile is likely to become an increasingly important
differentiator. Mobile ad spend is expected to skyrocket in the coming
years -- a phenomenon that many travelers will welcome. The PhoCusWright
Travel 2.0 Consumer Technology Survey indicates that 30% of travelers would
like to receive special offers about local restaurants and activities via
their mobile devices during their trips. This interest is expected to grow
as more appealing, media-rich offerings become available.
Travel metasearch looks promising in 2008 due to the twin forces of
consolidation and innovation. New entrants such as Farecast and the planned
merger of Kayak and Sidestep are likely to provide the increased press and
consolidated consumer power that metasearch needs to go mainstream. As more
consumers become aware of and start using travel search engines, the
overall efficiency of the travel market will increase. The end result for
travel suppliers will be continued pricing pressure on airfares and hotel
rates.
Other 2008 trends include:
Continued Consolidation: Likely travel industry consolidation targets
include areas where multiple service providers offer undifferentiated
services and where growth is stagnating, emerging markets where successful
travel startups are likely to be gobbled up by larger fish (read: India),
and niche sectors that require mergers in order to reach critical mass.
Travel Companies Get Social: The travel marketing potential of social
networks makes their commercialization inevitable. Initiatives like
Google's OpenSocial will help to drive growth, providing incentive for
travel companies to develop applications.
Media-Based Pricing Shakes Things Up: Online travel agencies will adapt
their business strategies to capitalize on all their search traffic. In
late 2007, Expedia took a bold first step, announcing a new pricing model
that blends transaction pricing with media pricing. Other online travel
agencies will be watching Expedia's business model experimentation closely
-- a second online travel agency could be making a similar move in the
coming year.
On-Plane Wireless Communication: It will take a few years until all flights
have wireless connectivity, but the efforts of Aircell in equipping
airlines with in-flight Wi-Fi will produce a major uptick in usage, with
American Airlines and Virgin America, among others, coming on board in
2008.
Older Travelers Lured Online: Better travel applications will target the
50+ generation to encourage online bookings among this demographic, and
will be geared toward attracting those who previously tended to shop, but
not book, online. This trend will be particularly impactful in Europe,
where older travelers have been reluctant to embrace online travel.
This 2008 Trends article, "In With the Old, In With the New," is one of
many publications available to PhoCusWright's Global Edition subscribers.
The Global Edition is a syndicated research service featuring an efficient
feed of business and competitive intelligence for the corporate and leisure
travel, tourism and hospitality marketplace.
About PhoCusWright Inc.
PhoCusWright is the travel industry research authority on the evolving
dynamics that influence how travelers, suppliers and intermediaries
connect. Independent, rigorous and unbiased, PhoCusWright enables companies
to make smart, profitable decisions.
PhoCusWright provides global marketplace intelligence, offering an array of
qualitative and quantitative research through subscription services,
individual reports and sponsored assignments. Areas of emphasis include
consumer travel planning behavior as well as industry segmentation, sizing,
forecasting, trends and analysis. Clients represent all facets of the
industry value chain from around the world.
The company is headquartered in Connecticut, USA, with offices in New York,
Duesseldorf and Mumbai.
? 2008 PhoCusWright Inc., Sherman, CT USA
+1 860 350-4084 www.phocuswright.com
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Contact:
Lorraine Sileo
PhoCusWright Inc.
+1 860 350-4084 x130
email: lsileo@phocuswright-dot-com
Copyright ? 2008 Market Wire, Incorporated
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