Asia Pacific (APAC), Latin America (LATAM), Eastern Europe and the Middle East are eroding Europe’s and the US’ share in online travel transactions, according to Global Online Travel Overview Third Edition, a new report by travel industry research authority PhoCusWright.
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. And as online penetration in these mature markets begins to plateau, the most rapid growth in online bookings belongs to the emerging markets.
The report found that the these still-emerging regions currently have an online penetration rate of less than 30%, while in Europe and the US more than four in 10 travel transactions occur online. However, the emerging markets represent the greatest opportunity for expansion as many travellers 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 US
Despite significant regional differences, online travel has clearly taken hold in all of the world’s major travel markets, the report added.
Lorraine Sileo, PhoCusWright’s senior vice president, research, said, “From a total market perspective, APAC, Eastern Europe, the Middle East and LATAM have collectively advanced more rapidly than Europe and the U.S. 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.”
The third editon of the Global Online Travel Overview compares online and total travel bookings for six global regions – the US, Europe, Eastern Europe, APAC, the Middle East and LATAM. It 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
• Image credit (travel keyboard): graja/Shutterstock
