Emerging markets grabbing bigger piece of the online travel pie. Tuesday, 29th July 2014 Source : PhoCusWright Inc.
After years of controlling the lion's share of the world's online travel transactions, the global dominance of Europe and the US is finally waning.
As online penetration in these mature markets begins to plateau, the most rapid growth in online bookings belongs to Asia Pacific (APAC), Latin America (LATAM), Eastern Europe and the Middle East.
According to a new report by travel industry research authority PhoCusWright, Global Online Travel Overview Third Edition, these regions have an online penetration rate of less than 30%, while in Europe and the U.S. more than four in 10 travel transactions occur online.
These still-emerging markets represent the greatest opportunity for expansion as many travelers are turning to the online channel for the first time.
Over the next two years, APAC and LATAM will see online travel sales climb by 14-16% annually – but they won't be the fastest growing regions.
The Middle East – with its young population and high mobile ownership – and Eastern Europe will lead with online bookings growth at 20-25% annually for the next two years. Both regions are advancing four times as fast as the online market in the U.S.
"From a total market perspective, APAC, Eastern Europe, the Middle East and LATAM have collectively advanced more rapidly than Europe and the U.S.," says Lorraine Sileo, PhoCusWright's senior vice president, research.
"In the online segment, the growth in emerging markets is even more pronounced; while APAC, Eastern Europe, the Middle East and LATAM accounted for just a third of online bookings in 2013, together they grew more than 30% over two years, more than twice as fast as the developed markets."
PhoCusWright's Global Online Travel Overview Third Edition compares online and total travel bookings for six global regions: the U.S., Europe, Eastern Europe, APAC, the Middle East and LATAM. The report features market sizing and growth forecasts through 2015 for the total and online leisure travel markets.
Key topics include:
Global market share by region
Online travel penetration and regional growth potential
Analysis of supplier-intermediary dynamics and variation by region
Market trends for key countries in each region
Despite significant regional differences, online travel has clearly taken hold in all of the world's major travel markets.
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