Online travel agents sales are surging in contrast with a lacklustre performance from the traditional agency sector, according to exclusive credit card research for TravelTrends.biz.
Julie Prolov, senior consultant at Quantium, revealed at TRAVELtech that there’s been a 55% increase in spend with Australia’s online travel agents since 2010, compared with a 1% rise at traditional travel agents over the same period.
She said that traditional agencies still dominate travel retail in Australia with 73% share of spend compared with online travel agents at 27%.
However if present growth trends continue, online travel agencies will have the edge in market share within five years.
Ms Prolov said retail, both OTAs and TTAs, commands 30% of all travel spend in Australia.
Accommodation is the biggest sector with 34% of spend, followed by airlines (27%), traditional travel agents (22%), online travel agents (8%), car hire (6%) and cruising (3%).