The European online travel market rising to over EUR 50 billion this year

Aug 05, 08 | 1:58 am

The relatively steady growth of the overall European travel market since 2002 masks a true explosion in online sales. According to a recently published EyeforTravel Research report, the steady growth over the past 5 years is in fact fully accounted for by its online channels, as offline sales neither increased or decreased, with a CAGR of 0%. EyeforTravel reports the online market to have grown at a 41% CAGR in the 2002-2007 review period. Online market expenditure on travel products approached an estimated Euro 50 billion in 2007, a more than five fold increase from just under EUR 10 billion in 2002, representing a substantial CAGR of 41%. Online sales now account for a fifth (20%) of all travel sales, coming from under a twentieth (4%) in 2002. Offline travel expenditure still accounts for the vast majority of sales, but remained relatively stable in 2007, at around EUR 205 billion. The online travel market is closing in on the offline market in Europe but there still remains much room for growth in the online marketplace.

Around 20% of European households now have broadband connections, highest penetration in Nordic and Middle Europe and fastest growth recognised in Eastern and Southern European nations. In 2007 figures well over half of Europeans have claimed to have accessed the Internet in the last 3 months, 5% more than 2006 and a CAGR of 11% over the last 5 years. The Nordic region is the most internet savvy, with 81% internet penetration. Growth is more accelerated in the less saturated markets of Eastern and Southern Europe where online populations have grown with a CAGR of 22% and 13% respectively over the last 5 years. Growth in credit card penetration in Europe has been reported and the number and value of card transactions has been growing at a 13% CAGR since 2000. Amy Scarth, head of research at EyeforTravel also highlights that there is "an expanding demographic of Internet users across Europe looking for different products and certainly creating new opportunities for diverse online travel products and innovative marketing". The online sales ‘revolution' is not only extending to the emerging markets, there is a marked democratisation of the internet within all markets, with different population segments going online, notably the female population and ‘silver surfers'.

Further information about the European online travel market can be found in EyeforTravel's European Online Travel Report 2008 https://secure.firstconf.com/travel/reports/europe2008-purchase-fm.asp 
   

Contact:

Amy Scarth
Head of Research
EyeforTravel Ltd
Email: amy@eyefortravel.com
www.eyefortravel.com