European Online Travel Outpaces U.S.

    July 11, 2007

Online travel reservations in Europe grew 30 percent in 2006, according to analysts in a July 9, 2007 New York Times Article.

Compared to European online travel growth, U.S. online travel has hit a plateau.

Jake Fuller of Thomas Weisel Partners said over all reservations at Expedia, Travelocity and Priceline would reach $33 billion in 2007, an increase of 7 percent from 2006.

Fuller added that about 30 percent of domestic travel reservations are made online and that it could grow as high as 50 percent. Online travel accounts for a about a fifth of sales in Europe, and 12 percent in Asia.

Michelle Peluso of Travelocity said the European market can be more profitable than the domestic market because travelers in Europe usually make reservations for both hotel rooms and airline tickets. Wholesale pricing allows travel agencies to package both reservations types together, with a markup for the customer and a profit for the agency.