Consumers are continuing to use the Internet to make their travel arrangements, but usage has declined over the past few years, The Conference Board and TNS report today.
"Consumers conducting travel research online continue to outnumber those booking online," says Lynn Franco, Director of The Conference Board Consumer Research Center. "Among consumers whose online travel arrangements increased this year, ease of use and instant availability are the key drivers."
Among those using the Internet to make travel arrangements, the ability to book airfares online garnered the highest level of satisfaction, with 48 percent of customers claiming they are "extremely" satisfied. The ability to make car rental arrangements online also received high marks with nearly 42 percent of customers saying they are extremely satisfied.
The Consumer Internet Barometer - produced by The Conference Board, the global business research and membership organization, and TNS, a global market insight and information group - surveys 10,000 households across the country and tracks who's doing what on the Internet.
More women than men, 21 percent versus nearly 19 percent, used travel websites solely to research their travel arrangements. However, more men than women, 34 percent versus 33 percent, researched and also booked their travel arrangements via a travel website. In terms of satisfaction with travel websites, only 30 percent of consumers expressed a high level of satisfaction with these sites, although an additional 55 percent say they are somewhat satisfied.
Two out of every ten consumers say they have used the Internet more this year than last to research travel arrangements, while 18 percent have increased their online bookings. Ease of use was the primary reason behind the boost in online usage, followed by instant availability. Past experience and promotions are also among the top reasons consumers cited for their increased usage. Conversely, nearly one out of every four consumers say they used the Internet less than last year for making travel arrangements.
"Clearly, there appears to be room for continued growth in the online travel arena," says Franco.
RESEARCH CONTINUES TO OUTPACE BOOKING BY NEARLY TWO TO ONE
The proportion of consumers planning to use the Internet in the next three months to research travel continues to outnumber those intending to book online by nearly two to one. Overall activity, however, has declined over the past three years. Women are more likely than men to research travel activities online, but both are equally likely to book travel arrangements online.
Lodging is the most researched activity while airline tickets are the most booked online. Currently, 27 percent of men versus 29 percent of women intend to research lodging online, while 25 percent of men versus 27 percent of women intend to research airline rates/availability online. When it comes to booking, close to 18 percent of men and women plan to book airline tickets online and 16 percent intend to book lodging online. Close to 30 percent of consumers said they do not intend to research nor book travel arrangements online in the next three months.
About This Survey:
The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the second quarter of 2007.
Logos, product and company names mentioned are the property of their respective owners.
Reader Comments:
|
I take them with a grain of salt....
studies like this one claiming that online travel research continues to outpace booking. By definition there will always be more shoppers than buyers anywhere, after all not everybody that walks into a department store always buys something either. I'm not knocking the Conference Board which has a pretty good research track record but it's not really surprising news that online travel growth rates are slowing. It's an obvious sign of a maturing industry. What is more significant to me is that there seems to be a stagnating level of innovation in online travel that has an effect on how travelers evaluate the overall experience. Most OTA sites are offering a very similar user interface and pretty much standardized set of features. Of course, there are new alternatives to the major sites appearing on the scene but most of them don't have the recognition by the public at large and don't show up high on any rankings so far. The result is that the general traveling public is basing the evaluation of their experience on what is offered to them by the market leaders, OTAs or major suppliers. These travel services providers are challenged to innovate or acquire some of the new players that are starting to offer an improved user experience. As I've claimed previously, it comes down to a truly amazing one-stop experience with a seamless integration of all phases of DREAM - LEARN - PLAN - GO to get the industry to the next level. Where is the iPhone of travel - A truly innovative approach to easily research, plan and book a vacation on a fully integrated, real-time basis? 2007-07-16 Joe Buhler |
|
|
|