Online penetration among world’s highest

Online penetration among world’s highest
By admin


The online travel market in Australia and New Zealand will continue to boom over the next few years with penetration among the highest in Asia Pacific and even the world, according to new research.

PhocusWright’s Australia and New Zealand Online Travel Overview showed gross online leisure and unmanaged business travel bookings in Australasia grew 13% in 2011, almost double the overall travel market’s growth of 7%.

The report predicted double digit growth would continue into 2013, despite the maturing of the online market, while the overall travel market continued to grow at almost half the pace.

Air dominates the landscape, accounting for 80% of total online sales. Online air gross bookings shot up nearly 30% in 2010 and 2011 to just short of $9.7 billion, with low cost carriers set to drive growth even further.

“As LCCs expand their networks and drive sales through online channels, air passenger revenues will be the fastest-growing online segment in ANZ, soaring to $11.8 billion by 2013 and representing half of all ANZ air sales,” the report said.

However, senior director research Douglas Quinby insisted huge opportunities for growth existed in the accommodation sector which currently accounts for 17% of total online sales.

“It is the more fragmented lodging and intermediary arenas that are really heating up,” he said.

While online hotel sales increased 22% to $2.1 billion in 2011, the report showed supply issues and a significant mix of offline bookings were hindering growth. The segment is expected to slow to single digits by 2013 when the total online hotel market will reach $2.6 billion.

Meanwhile, local online travel agents (OTA) faced increased competition from their global counterparts in 2011, with traditional travel agencies moving online also posing a growing threat.

“As growth slows – and it certainly is in mature online markets such as Australia and New Zealand – home-grown online and traditional agencies are stepping up the fight, as are some of the global OTAs,” Quinby said.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]