MORE than half of all Australian travel purchases will be made online by 2010, according to researcher Frost & Sullivan.
It says Australian online travel sales will have a compound annual growth rate of 27 per cent over the next five years.
This sharp growth curve will lift online travel revenues from A$1.4 billion or 18 per cent of the overall travel market in 2005, to A$4.6 billion (54 per cent) by the end of this decade.
These findings form part of Frost & Sullivan’s Australian Household e-Commerce Market Report.
In a general sense, it found that the convenience of online booking engines has grown in direct correlation to suppliers improving their websites and consumer uptake of broadband.
“In terms of suppliers, the market in Australia is likely to consolidate hugely over the next one to three years,” the report said.
“Sophisticated online booking engines are leaving the rest for dead, and the usability demands on them are only going to increase.”
The report also slammed the lack of top-quality content.
“Relevant content in general but for accommodation sites in particular is mostly poor.
“This is the next major battleground for online travel players – up to date, highly detailed and entertaining content (short videos, virtual tours etc) about holiday services and destinations will become a significant conversion tool.”
It concluded: “More needs to be made of customer communities (travel experience reviews, video diaries etc) – travel sites generally are high on convenience but low on loyalty.”
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