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BizReport : Research archives : November 15, 2006

Travel Spending Going Online

Moving part of the advertising budget to online travel sites could help boost revenue in the future. That according to a new study from Jupiter Research that indicates online travel spending will rocket in the next few years.

by Kristina Knight

The study, called US Travel Forecast 2006 to 2011, estimates that online travel spending will jump to more than $125 billion in 2011, which is more that double the amount that will be spent this year. Another surprising find is that 38% of all travel revenue will be earned online by 2011. The study estimates that higher fares and more flight travel will drive the increased spending. This year, online travel spending is expected to be $49 billion.

Diane Clarkson, analyst at JupiterResearch and lead author of the report said (via MarketingVOX), "Factors that will spur online spending are greater consumer wallet share, increasingly sophisticated products available online, and improved online compliance in business travel."

Hotel reservations are another change that will spark the increased online spending, according to the report. As more hoteliers create better online hubs, fewer customers will call in reservations, preferring instead to point and click their way to a reservation.

Tags: online marketing, online spending, travel spending

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