Brussels, 30 September 2010 – Online travel and the technology that powers travel distribution have revolutionised the European travel industry, maintaining strong growth prospects despite tough economic conditions, according to a study by industry authority PhoCusWright.
The first-of-its-kind report commissioned by ETTSA (European Technology and Travel Services Association) shows how independent travel distribution has stimulated pricing transparency and eased consumer access to travel product and pricing information for airfares, hotel rooms, car rental and other travel products, and promoted growth and innovation.
“Technology unleashed a revolution in travel distribution, spawning unrivalled innovation in retailing and commercial models and breaking down the barriers to competition. The study reveals the scope of that transformation in Europe,” says Tom Parker, Secretary General of ETTSA, whose members include both online travel agents (OTAs) and global distribution systems (GDSs).
“Our industry, with the creative use of technology, has delivered dramatic improvements in travel research and shopping for the benefit of travel retailers and consumers,” Parker states. “’’The future is ever brighter if we can defend competition.”
The PhoCusWright study shows that the technological infrastructure that powers the industry makes travel information and prices more accessible and easier to compare and book. Independent travel distribution is also an important contributor to economic prosperity and employment throughout Europe.
“The last decade saw explosive growth in online travel sales in Europe, and this is now a fundamental part of travel shopping,’’ says the study’s author Douglas Quinby of PhoCusWright. ‘’In fact, the industry has been a bright spot in the European economy during the recession.”
PhoCusWright found as well that Internet bookings strongly outperformed the broader travel industry in 2009 and that sales by OTAs in the European Union topped €22 billion in 2008.
“Our industry’s value was highlighted during the volcanic ash crisis when we helped hundreds of thousands of stranded travellers get home,” Tom Parker observes. “That situation also revealed the tantalizing prospect of using our technology to leverage the full potential of the European rail system.”
The study demonstrates that travel retailers as well as consumers depend upon the independent travel distribution industry to provide travel product and pricing information, so that they can make informed, efficient decisions about the best travel options for their needs.
“Efforts by airlines to limit distribution through intermediaries, unbundle their travel offerings and withhold the associated costs from the travel distribution system pose a risk to full product and pricing transparency for consumers,” concludes Tom Parker. “The PhoCusWright study should motivate policymakers to take a closer look, and also to consider expanding consumer protection through revisions to EU directives on package travel and air passenger rights.”
