The U.S. travel market remains strong despite a murky economic outlook for 2013. Aided by rising prices and corporate travel demand, the industry will grow 8% in 2012 to reach a record $303 billion, according to travel industry research authority PhoCusWright, in the new report PhoCusWright's U.S. Online Travel Overview Twelfth Edition. PhoCusWright projects sustained but slowing growth through 2014.
"With uncertainty surrounding the fiscal cliff, European debt crisis and a slowing China economy, the travel industry outlook for the coming year is guarded," said Lorraine Sileo, vice president, research. "But after recovering from the recessionary losses of 2009 in less than two years, the U.S. travel market continues to show remarkable resilience."
Led by air and hotel, the online leisure/unmanaged business travel market is growing faster than the industry as a whole, jumping 11% in 2012. However, online growth is expected to slow to 7% annually for 2013 and 2014. Supplier websites are growing faster than online travel agencies in every segment, with total online supplier bookings jumping 14% in 2012, versus 6% growth for OTAs. By 2014, two thirds of online bookings will be made via supplier websites.
PhoCusWright's U.S. Online Travel Overview Twelfth Edition is a comprehensive analysis of the U.S. travel industry, providing market sizing and growth forecasts through 2014. The report focuses on the U.S. online leisure/unmanaged business travel marketplace, highlighting marketing and distribution trends for all travel segments including air, hotel, car rental, vacation packaging, rail and cruise. It tracks distribution shifts among supplier websites and online travel agencies, as well as major offline channels. For the first time, the report also includes mobile market sizing and forecasts. This comprehensive research provides a detailed overview of travel distribution in the U.S., with rich insight into trends in market share, technological innovation and consumer behavior.