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UK Online Leisure Travel Industry Will Be Worth

UK Online Leisure Travel Industry Will Be Worth

According to a new report by Forrester Research the UK online leisure travel market will grow from just £592 million in 2000 to upwards of £3.7 billion in 2005, representing 14% of total leisure travel sales in 2005.

The report also indicates that suppliers will need to refine their services more in order to cater for the different web consumers which Forrester has identified – Hardshells, Softshells and Backpacks: Hardshells make up the top 3% of spenders in this market and 20% of all holiday spending. Airline websites will score big with this sector if offering special deals for internet bookings, sending flight information to WAP phones and so on. Backpacks will use the net as a means of finding the cheapest offers and represent a large group of consumers, no-frills airlines will be popular with this group. Softshells representing the majority of the online travel market, 56%, and spend the least on leisure travel. They use conventional travel agents to book their holidays but may be persuaded by high street tour operators through offers in their brochures to take advantage of slightly lower prices if they book online.

Jaap Favier, senior Forrester analyst, says “As new opportunities arise online for UK travel players, the industry itself faces an overhaul due to the Net. The number of Internet users booking flights online will grow fourfold between 2000 and 2005 from 1.6 million to 5.7 million, and the online flight market in the UK will account for 45% of the total £3.7 billion industry in 2005. To reach and keep the British online travel shopper, Web travel sites will have to understand the specific travel needs of the various online shoppers.”

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