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June 16, 2007

Overall, Internet travel sales in the five major travel markets of Europe, France, Germany, Italy, Spain and the UK is expected to total nearly $49 billion in 2007, up 27 percent from last year.

Jeffrey Grau, analyst and author of a new report, European Online Travel says "however, over the next four years, as the European online travel market matures, sales growth in the sector will steadily decline. As could be expected, this means competition for online travel dollars is going to increase significantly."

After peaking two years ago, personal travel and tourism spending growth, both online and offline by the 25 European Union member states entered a moderate phase, as evidenced by data published by the World Travel & Tourism Council.

Grau added that "in 2007, spending by the EU-25 members is expected to grow only 2.4 percent over 2006. The newest members of the European Union — Eastern European nations such as Poland and the Czech Republic — will play a key role in stimulating future growth."

Tourists staying in Europe are most likely to be in-country residents, followed by non-residents from other European countries. No matter where they go, it is good news for European travel service providers, as Europeans take their leisure time seriously and have more vacation/travel time than Americans.

Overall, the average working adult in the U.S. earns far fewer vacation days than his or her counterpart in Europe, according to Expedia.

Grau said "at any rate, a number of powerful economic, business, technology and consumer trends are affecting the travel industry in general, and the European online travel sector specifically."

"In order to succeed over the long haul, travel companies will need to create travel products for consumers who place high expectations on their travel experiences and expect a high degree of service and selection," said Grau.

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Source: eMarketer