Online travel booking hits all-time high

Online travel booking hits all-time high

In U.S. booking through the Internet will account for one third of the total travel booking by consumers for personal and vacation purposes in 2005. The importance of the Internet as a distribution channel for the travel industry will continue to grow.

The Internet has emerged as a key distribution channel for the travel industry as more and more consumers are finding it a reliable means for travel booking. According to a report titled 'Internet Travel Booking in the U.S.', the Internet has provided consumers with greater leeway to research, plan and make their own travel arrangements. This could be one of the reasons why spending on travel has soared.

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Online travel booking is inclusive not only of flight bookings but also of online hotel booking and car rentals. Online travel companies have provided a wider choice and a greater degree of convenience to the consumer by disseminating travel content and pricing information. Though the resulting transparency has made the consumer more price conscious but the Internet will continue to boost the growth of the travel industry.

Not only has the number of online travel agencies increased but the competition between them has also stiffened. Travel companies are vying for the attention of the online customer. They are going for better content, better features and greater promotion. In turn customers are getting better information and services.

The above mentioned report concentrates on leisure travel, but the trend holds good for business travel as well. A survey conducted by Accenture, a consulting firm, reveals that as much as three-quarters of business travels is booked online. This trend has gained momentum only in the last five years before which online booking for business travel was virtually zero. The Internet will continue to be an important interface between customers and the travel industry.