PhoCusWright has been following the trajectory of online travel since its inception. At a recent forum in New York, executives took at a look at trends and found:

3 Forces For a Perfect Storm
PhoCusWright CEO Philip Wolf sees three forces creating the “perfect storm”
    1) Travelers Choice of Empowerment – with millions of consumers clicking million of times on millions of sites
    2) A proliferation of business models that are blurring together: media sites for travel information; referral sites for referring to booking sites; booking sites; and itinerary sites that keep track of personal itineraries – all taking on elements of one another.
    3) Traditional Value Chain Disrupted: It’s hard to tell who’s who anymore. Transaction sites look like advertising sites; search portals look like online travel agencies (OTA’s); supplier sites look like social media sites.
   

 Plus, Sileo Takes Aim at 6 Online Travel Myths

Lorraine Sileo, vice president for PhoCusWright, took aim at 6 online travel myths, offering facts to dispel each of the following
1. Number of online travel buyers is declining: That number is on the rise
2. More online travel shoppers use supplier sites than online travel agencies. In terms of popularity, online travel agencies are making a comeback.
3. Travel agencies are experiencing resurgence as travelers return to traditional purchasing channels. In reality, even many formerly exclusive offline buyers are migrating online for travel shopping and buying.
4. The next generation of travelers prefers to do everything online. The truth is, less than half of what 18-28 year olds spend on travel is spent online.
5. Social networks and travel reviews have the greatest influence on travel decision-making. While social media is widespread, destination Web sites and online travel agencies are favored by nearly half of next generation travelers during the travel shopping process.
6. Online travel markets need high credit card and Internet penetration to succeed. The structure and ambitions of the travel marketplace are even more important drivers than infrastructure. Case in point is India, one of the most dynamic online travel marketplaces today, where roughly 98% of the population does not use credit cards or have access to the Internet.

Future of Travel Agencies
   

Highlights from Douglas Quinby, a senior PhoCusWright researcher and editor of a Phocus Wright Report covered in greater detail by Luxury Travel 360.
    * Travel agents moving from booking 41% of travel in 2006 to a projected 33% in 2009
    * The breakdown of all travel bookings in 2009 will be: 53% directly with suppliers, 33% with traditional agencies; and 14% with online agencies
    * Corporate is where the dollars are. Leisure agencies, comprising 69% of agencies handle $65 billion in sales; corporate agencies, with only 7% by number handle $44 billion in sales.