According to a market survey sales results in the travel agency sector show a marked improvement - The survey was conducted by the Swiss Federation of Travel Agencies and Credit Suisse.

Competition from internet bookings is increasing, although it is not equally strong across all travel products. This is also the conclusion reached by a broadly based survey carried out by ELVIA Travel Insurance.

Competition from the internet is forcing travel agencies to improve quality, which can only be positive from the consumers' point of view. However, the pace of economic growth looks likely to slow somewhat in the course of the year.

The economic outlook for the travel agency sector nevertheless remains intact. The strongest growth segment in the travel business is Asia.

The travel industry has posted substantially better results for the third year in a row. This is one finding of the latest survey of members of the Swiss Federation of Travel Agencies.

Slightly lower employment figures in the industry meant that productivity rose again. This is reflected not only in the extrapolated turnover - which rose by 10.8% - but also in earnings, which were up by 50%. The robust economy and the absence of negative external factors were the main drivers behind this positive trend.

Asia Is the Major Growth Market

In the coming months, the strongest growth region in terms of turnover according to the travel agencies surveyed is Asia.

 However, demand for travel within Europe and the Americas also looks likely to be brisk. Broken down by destination, the top overseas travel spots are Thailand, the US and China. Among European countries (including the Mediterranean region) Greece, Spain and Croatia seem likely to be the favorite destinations.

Competition from the Internet: The Travel Agencies are Banking on Quality

In their study "Reisebüros: Qualitätssteigerung dank Internet" (Travel Agencies: Better Quality Thanks to the Internet), Credit Suisse economists address the challenges and prospects for the Swiss travel sector.

According to the results of the survey, more than four out of five travel agencies expect to see internet travel sales grow in the coming year. One-third of travel agencies responded that they felt strong competition from internet sales. Better and better online platforms allow customers to compare prices more easily and thereby increase competitive pressure.

Simple products (e.g. flights and hotels) are often booked via the internet. However, the internet is still not a serious competitor when it comes to tours and more complex products.

The internet has the potential to gain additional market share in the future, especially as regards standardized products. Professional, personal advice and the optimum matching of products to customer needs are vital success factors for the travel agencies. From the consumers' perspective these trends are seen as entirely positive.

ELVIA Survey: The Importance of the Internet as a Booking Channel Is Rising

Since 1994 ELVIA Travel Insurance has been carrying out an annual representative survey of the booking and travel behavior of Swiss travelers. According to the survey, it is clear that the internet is becoming more and more important as a booking channel for travelers.

More than 25% of travelers now book their vacation via the internet, almost as many as go to a traditional travel agency. For most of those surveyed, the quality of advice now plays a much more important role than price in their choice of agency. The last-minute travel segment has not really been able to gain a foothold.

Over two-thirds of those surveyed still made their travel arrangements more than four weeks in advance.

When choosing an airline, most customers were still mostly strongly influenced by price. More than 80% of those surveyed want the airlines to offer a fixed price that includes all surcharges etc.

 Despite price sensitivity, traditional airlines are more popular with customers than their no-frills competitors. One reason for this is likely to be security, which has again grown in importance for respondents since last year.

Swiss travelers continue to suffer from a degree of travel anxiety. For 35% of those surveyed, unrest or terrorism in their destination represents the greatest security risk. Almost half of customers therefore research the political situation in their target region before they set off. In contrast, fear of accident and illness has fallen.