The internet has been a major factor of disruption for many different industries, but it has been especially true for change in markets that sell products and services to consumers in that Internet based business models have created a new route to market and eliminated the need for intermediaries. In addition, business success in the travel industry is deeply affected by the advent of social media, and the instant online comparative shopping it enables and that consumers of travel services employ on a regular basis.
The days when corporate marketing messages and advertising was the key to steering consumers to product offerings are over, and increasingly consumers, especially those on the internet, use the shared experience of other consumers like themselves, to determine and steer purchase decisions. Travel agents rarely have any influence anymore and a large majority of travel purchase decisions are made directly by the final consumer.
The Online Travel Industry Landscape
Thus, today we observe all of the following:
- Travel aggregation sites like Expedia, Travelocity, TripAdvisor, Kayak and others which allow a consumer to compare prices of air/rail fares, hotels and sightseeing services all in a single environment are generally preferred to individual airline and hotel chain sites.
- The worldwide online travel agencies (OTAs) had gross bookings exceeding $150 billion in 2013, representing 38% of the global online market and 13% of the global travel market. The online travel sales figure is estimated to be growing at 12% annually…
Read more by downloading our white paper “The Business Benefit of Translating User Generated Content in the Travel Industry”