Your SlideShare is downloading. ×
North American
Online Travel Report 2009
    - Cruise Focus -
EyeforTravel Research
    7-9 Fashion Street
    London
    E1 6PX
    UK

    For queries contact:
    amy@eyefortravel.c...
North America Online Travel Report 2009




                                                                             T...
List of Figures



    List of Figures
    Figure 1.1:    North America Total Volume of Travel, 2002-2012F                ...
North America Online Travel Report 2009




                                                                              ...
List of Figures



    Figure 2.21:   US Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F          ...
Executive Summary
                    North America Online Travel Report 2009



Executive Summary
> North American Travel...
Executive Summary



     Growth in the value of the outbound travel market has been higher than the domestic
     travel ...
Executive Summary
                    North America Online Travel Report 2009



and Japan. A slightly higher proportion o...
Executive Summary



     have been reported and a 29.3% CAGR calculated for the 2002-2007 period. Between
     2008 and 2...
Upcoming SlideShare
Loading in...5
×

Cruise Online Distribution Focus North America 2009

510

Published on

Published in: Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
510
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Cruise Online Distribution Focus North America 2009"

  1. 1. North American Online Travel Report 2009 - Cruise Focus -
  2. 2. EyeforTravel Research 7-9 Fashion Street London E1 6PX UK For queries contact: amy@eyefortravel.com www.eyefortravelresearch.com EyeforTravel Ltd, April 2009 2 © EyeforTravel Research. All rights reserved.
  3. 3. North America Online Travel Report 2009 Table of Contents Table of Contents List of Figures 4 Methodology 7 Executive Summary 11 Chapter 1: North American Travel Market Analysis 15 North American Travel Market Overview 15 US vs. Canada Travel Market Analysis 35 US Travel Market Analysis 43 Canadian Travel Market Analysis 52 Chapter 2: North American Cruise Sector Analysis 61 North American Cruise Sector Overview 61 US Cruise Market Analysis 66 Canadian Cruise Market Analysis 75 3 © EyeforTravel Research. All rights reserved.
  4. 4. List of Figures List of Figures Figure 1.1: North America Total Volume of Travel, 2002-2012F 15 Figure 1.2: North America Volume of Travel - Domestic vs. Outbound (%), 2002-2012F 15 Figure 1.3: North America Volume of Domestic Travel, 2002-2012F 16 Figure 1.4: North America Volume of Outbound Travel, 2002-2012F 16 Figure 1.5: North America Travel Market Gross Value, 2002-2012F 17 Figure 1.6: Spend per Trip in US$ (North America), 2002-2012F 17 Figure 1.7: North American Travel Market - Sector Breakdown (US$), 2002-2012F 18 Figure 1.8: North American Travel Market - Sector Breakdown (%), 2008 18 Figure 1.9: North American Travel Market - Sector Breakdown (%), 2002-2012F 19 Figure 1.10: North American Travel Market - Y-o-Y Growth by Sector, 2002-2012F 20 Figure 1.11: North American Travel Market - CAGR by Sector, 2002-2007 and 2008-2012F 20 Figure 1.12: Online Penetration of the North American Travel Market, 2002-2012F 21 Figure 1.13: Value of North American Travel Market - Online vs. Offline, 2002-2012F 22 Figure 1.14: Sector Breakdown of North American Online Travel Market (%), 2008 23 Figure 1.15: Sector Breakdown of North American Online Travel Market (%), 2002-2012F 23 Figure 1.16: North American Online Travel Market - CAGR by Sector, 2002-2007 and 2008-2012F 24 Figure 1.17: Online/Offline Distribution Values - North American Airline Market, 2002-2012F 25 Figure 1.18: Online/Offline Distribution Values - North American Hotel Market, 2002-2012F 25 Figure 1.19: Online/Offline Distribution Values - North American Car Rental Market, 2002-2012 25 Figure 1.20: Online/Offline Distribution Values - North American Bus Market, 2002-2012F 26 Figure 1.21: Online/Offline Distribution Values - North American Cruise Market, 2002-2012F 26 Figure 1.22: Online/Offline Distribution Values - North American Railway Market, 2002-2012F 26 Figure 1.23: Online/Offline Distribution Values - North American Package Market, 2002-2012F 27 Figure 1.24: Value of the North American Travel Market - Domestic vs. Outbound, 2002-2012F 27 Figure 1.25: North American Travel Market - Domestic vs. Outbound (%), 2008 28 Figure 1.26: North American Travel Market - Domestic vs. Outbound (%), 2002-2012F 28 Figure 1.27: North American Travel Market - Y-o-Y Growth Domestic vs. Outbound (%), 2002-2012F 29 Figure 1.28: Spend per Trip (North America Averages) - Domestic vs. Outbound, 2002-2012F 29 Figure 1.29: North American Online Travel Market - Domestic vs. Outbound (%), 2002-2012F 30 Figure 1.30: North American Online Travel Market - Domestic vs. Outbound (%), 2008 31 Figure 1.31: Value of the North American Online Travel Market - Domestic vs. Outbound, 2002-2012F 31 Figure 1.32: North American Online Travel Market - Y-o-Y Growth Domestic vs. Outbound (%), 2002-2012F 31 Figure 1.33: North American Domestic Online Travel Market - Sector Breakdown (%), 2002-2012F 32 Figure 1.34: North American Domestic Online Travel Market - Sector Breakdown (%), 2008 33 Figure 1.35: North American Domestic Online Travel Market - Sector Breakdown Values (US$), 2002-2012F 33 Figure 1.36: North American Outbound Online Travel Market - Sector Breakdown (%), 2002-2012F 34 Figure 1.37: North American Outbound Online Travel Market - Sector Breakdown (%), 2008 34 Figure 1.38: North American Outbound Online Travel Market Value - Sector Breakdown (US$), 2002-2012F 34 Figure 1.39: US vs. Canada Total Volume of Travel, 2002-2012F 35 Figure 1.40: US vs. Canada Total Volume of Travel (%), 2002-2012F 35 Figure 1.41: US Volume of Domestic Trips, 2002-2012F 36 Figure 1.42: US Volume of Outbound Trips, 2002-2012F 37 Figure 1.43: Canada Volume of Domestic Trips, 2002-2012F 37 Figure 1.44: Canada Volume of Outbound Trips, 2002-2012F 37 Figure 1.45: Value of the North American Travel Market - US vs. Canada, 2002-2012F 38 Figure 1.46: North American Travel Market - US vs. Canada (%), 2002-2012F 39 Figure 1.47: Average Spend per Person per Trip - US and Canada, 2002-2012F 39 Figure 1.48: North American Online Travel Market - US vs.Canada (%), 2002-2012F 40 Figure 1.49: Value of the North American Online Travel Market, US vs. Canada, 2002-2012F 40 Figure 1.50: Online Penetration Comparison of the US and Canadian Gross Travel Markets, 2002-2012F 41 Figure 1.51: Online Penetration of the US Gross Travel Market, 2002-2012F 42 4 © EyeforTravel Research. All rights reserved.
  5. 5. North America Online Travel Report 2009 List of Figures Figure 1.52: Online Penetration of the Canadian Gross Travel Market, 2002-2012F 42 Figure 1.53: Value of the US Gross Travel Market, 2002-2012F 43 Figure 1.54: Value of the US Online Travel Market, 2002-2012F 43 Figure 1.55: US Travel Market - Domestic vs. Outbound (%), 2002-2012F 44 Figure 1.56: Value of US Gross Travel Market - Domestic vs. Outbound, 2002-2012F 45 Figure 1.57: Outbound Travel Destination Trends, 2002-2012F 46 Figure 1.58: Value of US Online Travel Market - Domestic vs. Outbound, 2002-2012F 46 Figure 1.59: US Online Travel Market - Domestic vs. Outbound (%), 2002-2012F 47 Figure 1.60: Online Penetration Comparison of US Domestic and Outbound Travel Markets, 2002-2012F 47 Figure 1.61: US Travel Market - Sector Breakdown (%), 2002-2012F 48 Figure 1.62: US Travel Market - Sector Breakdown (%), 2008 49 Figure 1.63: US Travel Market - Sector Breakdown (US$), 2002-2012F 49 Figure 1.64: US Travel Market - Y-o-Y Growth by Sector, 2002-2012F 49 Figure 1.65: US Online Travel Market - Sector Breakdown (%), 2002-2012F 50 Figure 1.66: US Online Travel Market - Sector Breakdown (%), 2008 50 Figure 1.67: US Online Travel Market - Sector Breakdown (US$), 2002-2012F 51 Figure 1.68: US Online Travel Market - Y-o-Y Growth by Sector, 2002-2012F 51 Figure 1.69: Sector Online Penetration, 2002-2012F 51 Figure 1.70: Value of the Canadian Gross Travel Market, 2002-2012F 52 Figure 1.71: Canadian Travel Market - Domestic vs. Outbound (%), 2002-2012F 53 Figure 1.72: Value of the Canadian Travel Market - Domestic vs. Outbound, 2002-2012F 53 Figure 1.73: Value of the Canadian Online Travel Market, 2002-2012F 54 Figure 1.74: Canadian Online Travel Market - Domestic vs. Outbound (%), 2002-2012F 55 Figure 1.75: Online Penetration Comparison of Domestic and Outbound Canadian Travel Market, 2002-2012F 55 Figure 1.76: Value of the Canadian Online Travel Market – Domestic vs. Outbound, 2002-2012F 56 Figure 1.77: Canadian Travel Market - Sector Breakdown (%), 2002-2012F 57 Figure 1.78: Canadian Travel Market - Sector Breakdown (%), 2008 57 Figure 1.79: Canadian Travel Market - Sector Breakdown (CAD $), 2002-2012F 58 Figure 1.80: Canadian Travel Market - Y-o-Y Growth by Sector, 2002-2012F 58 Figure 1.81: Canadian Online Travel Market - Sector Breakdown (%), 2002-2012F 59 Figure 1.82: Canadian Online Travel Market - Sector Breakdown (%), 2008 59 Figure 1.83: Sector Online Penetration, 2002-2012F 60 Figure 1.84: Canadian Online Travel Market - Y-o-Y Growth by Sector, 2002-2012F 60 Figure 1.85: Canadian Online Travel Market - Sector Breakdown (CAD $), 2002-2012F 60 Figure 2.1: Value of the North American Gross Cruise Market, 2002-2012F 61 Figure 2.2: North American Cruise Market - US vs. Canada (%), 2002-2012F 62 Figure 2.3: Value of the North American Cruise Market, US vs. Canada, 2002-2012F 62 Figure 2.4: Online Penetration of the North American Cruise Market, 2002-2012F 63 Figure 2.5: Value of the North American Online Cruise Market, 2002-2012F 64 Figure 2.6: Value of the North American Online Cruise Market - US vs. Canada, 2002-2012F 64 Figure 2.7: North American Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F 65 Figure 2.8: Value of the North American Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 66 Figure 2.9: US Cruise Market - Domestic vs. Outbound (%), 2002-2012F 67 Figure 2.10: Value of the US Cruise Market - Domestic vs. Outbound, 2002-2012F 67 Figure 2.11: Cruise Sector Contribution to US Total, Domestic and Outbound Travel Markets, 2002-2012F 68 Figure 2.12: Online Penetration of the US Cruise Market, 2002-2012F 68 Figure 2.13: Value of the US Cruise Market - Online vs. Offline, 2002-2012F 69 Figure 2.14: Online Penetration Comparison of the US Gross, Domestic and Outbound Cruise Market, 2002-2012F 69 Figure 2.15: US Online Cruise Market - Domestic vs. Outbound (%), 2002-2012F 70 Figure 2.16: Value of the US Online Cruise Market - Domestic vs. Outbound, 2002-2012F 70 Figure 2.17: Online Penetration of the US Domestic Cruise Market, 2002-2012F 71 Figure 2.18: Value of the US Domestic Cruise Market - Online vs. Offline, 2002-2012F 71 Figure 2.19: Online Penetration of the US Outbound Cruise Market, 2002-2012F 72 Figure 2.20: Value of the US Outbound Cruise Market - Online vs. Offline, 2002-2012F 72 5 © EyeforTravel Research. All rights reserved.
  6. 6. List of Figures Figure 2.21: US Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F 72 Figure 2.22: Value of the US Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 73 Figure 2.23: Value of the US Domestic Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 73 Figure 2.24: US Domestic Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F 74 Figure 2.25: Value of the US Outbound Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 74 Figure 2.26: US Outbound Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F 74 Figure 2.27: Canadian Cruise Market - Domestic vs. Outbound (%), 2002-2012F 75 Figure 2.28: Value of the Canadian Cruise Market - Domestic vs. Outbound, 2002-2012F 76 Figure 2.29: Online Penetration of the Canadian Cruise Market, 2002-2012F 77 Figure 2.30: Value of the Canadian Cruise Market - Online vs. Offline, 2002-2012F 77 Figure 2.31: Canadian Online Cruise Market - Domestic vs. Outbound (%), 2002-2012F 78 Figure 2.32: Value of the Canadian Online Cruise Market - Domestic vs. Outbound, 2002-2012F 78 Figure 2.33: Value of the Domestic Canadian Cruise Market - Online vs. Offline, 2002-2012F 79 Figure 2.34: Value of the Outbound Canadian Cruise Market - Online vs. Offline, 2002-2012F 79 Figure 2.35: Canadian Online Cruise Market - Direct vs. Indirect Distribution (%), 2002-2012F 80 Figure 2.36: Value of the Canadian Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 80 Figure 2.37: Value of the Canadian Domestic Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 81 Figure 2.38: Value of the Canadian Outbound Online Cruise Market - Direct vs. Indirect Distribution, 2002-2012F 81 6 © EyeforTravel Research. All rights reserved.
  7. 7. Executive Summary North America Online Travel Report 2009 Executive Summary > North American Travel Market Overview 2009 to be the first year this decade that a decline in travel expenditure is expected in the region The value of the North American travel market reached an estimated US$389,376 million in 2008 and a further 16% increase in volume is expect by 2012, but growth has slowed. 2009 is expected to be the first year this decade for a decline in the total value of travel expenditure and we forecast a recovery in 2010. Fastest growth in Hotel and Cruise sectors Airlines continue to account for the largest proportion of travel spend, followed by Hotels. In 2008 these sectors accounted for 35% and 25% of the total market respectively. Fastest growth has been in the Hotel and Cruise sectors. Online penetration of North American travel market reaches 35% Distribution trends within the North American market reveal some particularly interesting patterns. Whilst offline channels continue to account for the majority of travel spend online channel have been rapidly gaining share. In 2008 the online penetration of the North American travel market reached about 35% of the value. By 2012 we are expecting almost half of travel expenditure to be online. Growth rates of the online channel are expected to be lower than previous years but between 2008 and 2012 a total growth in value of almost 50% is forecast. The online travel market by 2012 is predicted to reach a value of US$201,382 million. That is an additional US$57,498 million annually to be circulated online by the end of 2012. All growth is online While the gross travel market experiences a relatively stagnant period, amongst this, the online travel market is showing very healthy growth and continuing to erode offline share. This illustrates the growing importance of online channels and the resilience to the economic downturn. The Airline sector dominates the online travel market (56%) and online expenditure on Airline products reached US$75,964 million in 2008. The value of the online travel market is forecast to grow in value by 44% between 2008 and 2012. The Hotel sector accounts for 32% of the total online travel market and US$42,831 million in 2008. Growth by 2012 is forecast to be up by a value of over 50%. The Car Rental sector is the next largest sector accounting for 7.7% and a value of US$10,389 million (2008). 11 © EyeforTravel Research. All rights reserved.
  8. 8. Executive Summary Growth in the value of the outbound travel market has been higher than the domestic travel market, but in 2009 a decline of 4.8% is expected in the outbound market for the first time. Good recovery is forecast for 2010. Domestic travel accounts for around 64% of the total online travel market and outbound 36%. Outbound travel products for North American consumers have performed well online and increased in share from 28% in 2002. From 2010 we expect grow in both domestic and outbound online markets to hit double digit figures again. Canada increases it significance in the North American travel market but US spend more per trip Canadian travellers accounted for 9.4% of total North American travel trips in 2002 and by 2012 we expect this to increase to 11.3%. Canada has out performed the US from a volume growth perspective. Canada is expected to grow by 1.8% in 2009, while the US experiences a decline of around 1%. In value terms, the US contributes 90% to the North American market and this is expected to remain relatively consistent during the review period in this report. US travellers have a higher spend per trip than Canadian travellers. US online travel market valued at US$123,346 million in 2008 The US accounts for 91% of the total North American online travel market. The US online travel market reached an estimated value of US$123,346 million in 2008 and Canada US$12,252 million (CAD $12,869 million). The US online market is slightly more advanced than Canada but penetration is relatively similar. 35.2% of US travel expenditure was online in 2008 against a 31.5% penetration for Canada. By 2012 we forecast 44.8% of all US travel expenditure to be online and 42% of Canadian. A continuously changing travel distribution landscape The contrast between the performances of online and offline channels is enormous. Online channels have been remarkably productive and growth rates have remained in double digit figures for every year reviewed in the report – with the exception of 2009 when annual growth is expected to fall to a level of 6.3% (still well above growth levels for the offline market for the entire period). Put alongside offline productivity, the 5.2% decline in the offline market for 2009 makes a very strong statement. The online channels certainly now seem strong despite times of instability. US outbound travel market is growing Just under 70% of US travel expenditure is currently on domestic travel. Outbound travel is growing well and at higher rates than the more mature domestic market. 2009 is however expected to result in an estimated 4.8% decline. Mexico and Canada are receiving the most outbound travellers, followed by the UK. Growth has been strongest in Germany 12 © EyeforTravel Research. All rights reserved.
  9. 9. Executive Summary North America Online Travel Report 2009 and Japan. A slightly higher proportion of domestic travel is bought online in comparison to outbound travel, but only marginally. Canadian travel market reaches US$38,869 million (CAD $40,825 million) in 2008 By 2012 the Canadian travel market is expected to be 73% larger in size than it was in 2002. The Canadian market is very different from the US in that outbound travel accounts for the majority of the Canadian travel market. In 2008 outbound travel contributed around 67% to the total Canadian travel market. Annual growth has generally been higher for outbound travel and a 5.5% CAGR is expected for the 2007-2012 review period. Canadian online travel market valued at US$1,986 million (2008) Online channels are also becoming increasingly significant for the Canadian travel market. Online penetration has jumped from 11% in 2002 to around 32% in 2008. Growth is expected to slow but continue to expand and penetrate around 42% of the market by 2012. The online travel market is divided fairly evenly between domestic and outbound markets, despite the domination of the outbound segment in the gross market. The domestic market has a higher online penetration and when in 2012 we forecast that 60% of domestic travel will be purchased online, 33% of the outbound segment will be online. Growth online for both has been remarkable though. Airline products make up a significant 61% of the Canadian online travel market and the data reveals that there is a lot of room for growth for some of the travel sectors. > Cruise Sector 3.5% decline in the value of the North American Cruise market forecast for 2009 The Cruise sector makes up around 3% of the North American travel market. The value of the sector reached US$12,732 million in 2008 which was an increase of 1.2% on 2007. The growth of the Cruise sector has been relatively high in comparison to other sectors, but growth has slowed since 2007, and in 2009 a 3.4% decline is forecast. Canada has increased its significance in the North American Cruise market and grown its share from 2.2% in 2002 to 6.8% in 2008. Canada has therefore grown faster than the US but from smaller base numbers. For Canada specifically, the Cruise market has left a very positive period of growth for a short while and there was a 1.7% decline in 2008. The US is also expected to decline in 2009 by 2.8%. Online North American Cruise market to double in size by 2012 Online Cruise distribution is in its infancy when put along side other online travel sectors. The penetration has, however, grown from 4.1% in 2002 to 11.3% in 2008 and is expected to reach around 19% by 2012. The online/offline gap is therefore expected to remain to be wide. Nevertheless, although from small base numbers, very strong online growth rates 13 © EyeforTravel Research. All rights reserved.
  10. 10. Executive Summary have been reported and a 29.3% CAGR calculated for the 2002-2007 period. Between 2008 and 2012 we forecast the online Cruise market to double in size. Canadian Cruise consumers enter the online marketplace In the past, all online North American Cruise revenue has been solely generated by US consumers. Until 2008, Canadian’s purchased all their Cruise products offline, but movement is now being seen in the Canadian online market. OTAs driven online Cruise market OTAs have really driven the development of online Cruise market in the entire region and generate about 94% of the online Cruise revenue. As with other sectors, Direct distribution is gradually increasing and this trend is expected to continue, however OTAs will continue to dominate. 14 © EyeforTravel Research. All rights reserved.

×