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Travel Industry Worldwide Table of Contents 3 Methodology 7 The eMarketer Difference 8 The Benefits of eMarketer’s Aggregation Approach 9 “Benchmarking” and Projections 9 I Travel Trends 11 A. Business Travel 16 B. Leisure Travel 23 II Technology Applications and Initiatives 25 A. Travel Distribution 26 B. Self-Service Kiosks 35 C. In-Flight E-Mail Update 36 III Travel Advertising and Marketing 37 A. Offline 38 B. Online 41 IV Total Travel Market: Size and Growth 53 A. Leading Tourism Markets – Arrivals 54 B. Leading Tourism Markets – Spending 56 US 58 V Online Travel Market 61 A. North America 63 US 63 Canada 73 B. Europe 74 Revenues 74 Category,Channel and Country Breakdown 77 C. Asia-Pacific 81 D. Travel Service Vendors 84 North America: US and Canada 84 Europe 93 Traditional Agencies & Consolidation 94 3 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Travel Industry Worldwide VI Travel Segments 97 A. Air Travel Market 98 Competitive Environment: FSCs vs. LCCs 98 Worldwide Airline Traffic & Leading Airports 104 Leading Airlines 106 B. Hotel/Hospitality Market 112 Hotel Performance Benchmarks 113 Traveler Preferences 116 Emerging Technologies: Broadband Hotels 121 C. Car Rental Market 125 Revenues and Fleet Size 125 Leading Companies and Markets 126 Traveler Preferences 129 VII Traveler Demographics & Preferences 131 A. Business Travelers 132 US 132 Europe 138 B. Leisure Travelers 140 North America: US 140 North America: Canada 155 Europe 159 Index of Charts 165 4 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Travel Industry Worldwide October 2003 Welcome to eMarketer Dear Reader: Noah Elkin Senior Analyst, eMarketer The Travel Industry Worldwide TM report from eMarketer examines the dramatic shifts that the global [email protected] travel industry has experienced in the past two years. It covers the major leisure and business travel eMarketer, inc. 75 Broad Street categories in both the online and offline segments at a time when the industry is facing some of its New York, NY 10004 toughest challenges in years. T: 212.763.6010 F: 212.763.6020 With the travel industry now poised for recovery, this report, which examines current trends in travel spending and traveler demographics as well as new technology applications and initiatives, is an invaluable reference tool for tracking what are sure to be dramatic changes in the year ahead. The pages that follow contain statistics, lists and detailed information that are critical for developing business and marketing plans, creating presentations, answering vital “need-to-know- now” questions from clients or management and making informed decisions about ventures that affect all aspects of your company’s marketing operations. Like all eMarketer reports, Travel Industry Worldwide TM presents statistical information aggregated from a broad range of authoritative research sources, totaling more than 60 in all in this report. In addition, readers may wish to consult eMarketer’s eStat Database, which contains thousands of additional statistics on virtually every aspect of the global travel industry, in order to get the most complete picture of trends as well as consumer preferences in the leading travel markets around the world. If you have any questions or comments concerning eMarketer or any of the material in this report, please call, fax or e-mail us. Noah Elkin Senior Analyst Written by Noah Elkin Also contributing to this report: Reuse of information in this document, without prior authorization, Yael Marmon, director of research is prohibited. If you would like to license this report for your Tracy Tang, researcher organization, please contact David Iankelevich at David Berkowitz, senior editor [email protected], or 212.763.6037. Allison Smith, senior editor Kwanza Osajyefo Johnson, data entry associate Dana Hill, production artist 5 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Travel Industry Worldwide Methodology 7 The eMarketer Difference 8 The Benefits of eMarketer’s Aggregation Approach 9 “Benchmarking” and Projections 9 I Travel Trends 11 II Technology Applications and Initiatives 25 III Travel Advertising and Marketing 37 IV Total Travel Market: Size and Growth 53 V Online Travel Market 61 VI Travel Segments 97 VII Traveler Demographics & Preferences 131 Index of Charts 165 7 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Travel Industry Worldwide Methodology eMarketer’s approach to market research is founded on a philosophy of Travel Trends aggregating data from as many different sources as possible. Why? Because Technology Applications and Initiatives there is no such thing as a perfect research study and no single research Travel Advertising and Marketing source can have all the answers. Moreover, a careful evaluation and Total Travel Market: weighting of multiple sources will inevitably yield a more accurate picture Size and Growth than any single source could possibly provide. Online Travel Market Travel Segments Traveler Demographics & Preferences The eMarketer Difference Index of Charts eMarketer does not conduct primary research, it therefore has no testing technique to defend, no research bias and no client contracts to protect. eMarketer prepares each market report using a four-step process of aggregating, filtering, organizing and analyzing data from leading research sources worldwide. Aggregate Analyze Filter Organize ©2001 eMarketer, Inc. www.eMarketer.com Using the Internet and accessing a library of electronically-filed research reports and studies, the eMarketer research team first aggregates publicly available e-business data from hundreds of global research and consultancy firms. This comparative source information is then filtered and organized into tables, charts and graphs. Finally, eMarketer analysts provide concise and insightful analysis of the facts and figures along with their own estimates and projections. As a result, each set of findings reflects the collected wisdom of numerous research firms and industry analysts. “I think eMarketer reports are extremely useful and set the highest standards for high quality, objective compilation of often wildly disparate sources of data. I rely on eMarketer’s research reports as a solid and trusted source.” — Professor Donna L. Hoffman, Co-Director, eLab, Vanderbilt University 8 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Travel Industry Worldwide Methodology The Benefits of eMarketer’s Aggregation Travel Trends Technology Approach Applications and Initiatives Objective: information is more objective than that provided by any single Travel Advertising and Marketing research source Total Travel Market: Size and Growth Comprehensive: gathered from the world’s leading research firms, Online Travel Market consultancies and news organizations Travel Segments Authoritative: quoted in leading news publications, academic studies and Traveler Demographics & Preferences government reports Index of Charts All in one place: easy to locate, evaluate and compare Readily accessible: so you can make quick, better-informed business decisions Above the hype: accurate projections that business people can use with confidence Time saving: there’s no faster way to find Internet and e-business stats, online or off Money saving: more information, for less, than any other source in the world “Benchmarking” and Projections Until recently, anyone trying to determine which researcher was most accurate in predicting the future of any particular aspect of the Internet did not have a definitive source with which to do this. For instance, over 10 firms predicted e-commerce revenues for the fourth quarter 1998 online holiday shopping