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Europe is without doubt a highly fragmented region and to ensure effective strategies in any of its diverse markets, key behavioural differences in travel purchasing should be realised. This report is an indispensable tool for anyone currently involved in or looking to break into these lucrative markets and keep on top of the latest trends.
The European Online Travel Report 2008 will answer the following questions and many more for you...
Which European travel markets should I target and when?
Where are the biggest source markets in the European travel market?
Where's the real buying power?
Where's the biggest potential and when will it really emerge?
What's the value of the air, hotel, rail, car, cruise and package tour sectors?
What's the best way to sell travel to my chosen markets?
What are the characteristics of the different online travel markets in Europe?
Which European online travel markets are most developed?
What are the sizes / values of the online travel markets?
Where's the Internet gaining importance?
Where are the structural barriers and opportunities for online travel growth?
Who's buying the most online?
Which travel products do they actually buy online?
Where do consumers have a willingness to embrace online payments?
Have the mainstream consumers found their way online?
How do I adapt my strategy for the individual European travel markets?
Which are the best distribution channels to invest in?
Where are intermediaries significant for online travel expenditure?
Who are the major online intermediaries in each market?
Which products are intermediaries selling well?
Which markets have a tendency to book direct?
Which markets are driven by localised intermediaries?
Which markets will respond well to direct online marketing and distribution?
What are my competitors doing?
How is my travel sector performing online?
What can be learnt from the other online travel sectors?
How are the major players performing?
Where do strong travel brand names currently exist?
How should I benchmark our online activities?
What travel distribution strategies should I put in place going forward?
Table of Contents
Executive Summary
Chapter 1: European Travel Market
1.1 Trends
1.1.1 The European travel market in perspective
1.1.2 Online versus offline market performance
1.2 Online Penetration and credit card usage
1.3 Top European Online Travel Markets
1.3.1 Overall
1.3.2 United Kingdom
1.3.3 Germany
1.3.4 France
1.3.5 Nordic region
1.3.6 Middle European
1.3.7 Southern Europe
1.3.8 Eastern Europe
1.4 Forecasted Growth
Chapter 2: Travel Products in Europe
2.1 Transportation
2.1.1 Air transport developments
2.1.1.1 Overall
2.1.1.2 Online revenue and sales models; traditional airlines versus low cost carriers
2.1.1.3 Online revenue by market
2.1.2 Train transport
2.1.3 Other transport methods; car rental, car ferry and bus transport
2.2 Accommodation
2.3 Package Tour
2.4 Cruises
Chapter 3: Online Distribution
3.1 Intermediaries
3.2 Direct (Supplier) vs. Indirect (Online Intermediary) sales
Figure 1: Global growth in outbound tourism, by region (including business travel) Figure 2: European travel market size Figure 3: European travel market, by country Figure 4: Leading European outbound travel markets Figure 5: European travel market, by sector Figure 6: European travel market, by sector and country Figure 7: Sector proportion of European travel market, by country Figure 8: Leading destinations of European outbound travellers Figure 9: European travel market size: online vs. offline Figure 10: European travel market size: online vs. offline Figure 11: European travel market size in 2007: online versus offline, by country Figure 12: European travel market, by country Figure 13: European travel market size in 2007: online versus offline, by sector Figure 14: European online travel market, by sector Figure 15: European online market growth, by sector Figure 16: Sector proportion of European online travel market, by country, 2007 Figure 17: Sector proportion of European online travel market Figure 18: Internet penetration: percentage of individuals who accessed the internet in the last 3 months Figure 19: Broadband penetration, per capita, per country Figure 20: Broadband penetration growth rate 2006-2007: per capita per country Figure 21: Number and value of card transactions (excluding e-money function) Figure 22: Total number of cards issued, per country Figure 23: Number of cards issued per inhabitant (2006) Figure 24: Effect of online research on brand chosen Figure 25: Top 10 websites visited at least once a month by European internet users Figure 26: Top 10 most popular products bought online by online shoppers Figure 27: Percentage of individuals who ordered travel and holiday accommodation over the Internet in the last 12 months Figure 28: Trends in online expenditure per online travel buyer, by country (€) Figure 29: Countries as percentage of overall online market Figure 30: Per capita online spend (€) Figure 31: Trends in UK online travel market Figure 32: Top UK holiday destinations Figure 33: UK Online travel market in 2007, by sector Figure 34: UK travel market sectors as a percentage of total travel market, 2007 Figure 35: Trends in UK online travel market, by sector Figure 36: UK online travel market, growth rates, by sector Figure 37: Trends in UK online travel market, direct versus intermediary sales Figure 38: Trends in UK online travel market, direct versus intermediary sales as percentages Figure 39: Most popular travel websites in 2007 Figure 40: Trends in German online travel market Figure 41: Top German Holiday destinations Figure 42: Trends in German online travel market, by sector Figure 43: Trends in German online air travel market Figure 44 German Online travel market in 2007, by sector Figure 45: German online travel market, growth rates, by sector Figure 46: German travel market sectors as a percentage of total travel market, 2007 Figure 47: Largest tour operators in Germany Figure 48: Trends in German online travel market, direct versus intermediary sales Figure 49: Trends in German online travel market, direct versus intermediary sales as percentages Figure 50: Largest Travel agencies Figure 51: Trends in French online travel market Figure 52: French Online travel market in 2007, by sector Figure 53: Trends in French online travel market, by sector Figure 54: Trends in French online air travel market Figure 55: French online travel market, growth rates, by sector Figure 56: French travel market sectors as a percentage of total travel market, 2007 Figure 57: Trends in French online travel market, direct versus intermediary sales Figure 58: Trends in French online travel market, direct versus intermediary sales as percentages Figure 59: Most popular OTAs in France Figure 60: Trends in Nordic online travel market Figure 61: Trends in Nordic online travel market, by sector Figure 62: Nordic travel market sectors as a percentage of total travel market, 2007 Figure 63: Trends in Nordic online air travel market Figure 64: Nordic Online travel market in 2007, by sector Figure 65: Nordic online travel market, growth rates, by sector Figure 66: Trends in Nordic online travel market, direct versus intermediary sales Figure 67: Trends in Nordic online travel market, direct versus intermediary sales as percentages Figure 68: Trends in Middle European online travel market Figure 69: Trends in Middle European online travel market, by sector Figure 70: Middle European travel market sectors as a percentage of total travel market, 2007 Figure 71: Middle European Online travel market in 2007, by sector Figure 72: Middle European online travel market, growth rates, by sector Figure 73: Trends in Middle European online travel market, direct versus intermediary sales Figure 74: Trends in Middle European online travel market, direct versus intermediary sales as percentages Figure 75: Southern European online travel market, by country, 2007 Figure 76: Trends in Southern online travel market - total Figure 77: Trends in Southern online travel market - by country Figure 78: Southern European travel market sectors as a percentage of total travel market, 2007 Figure 79: Southern Online travel market in 2007, by sector and country Figure 80: Trends in Southern online air travel market Figure 81: Trends in Southern online travel market, by sector Figure 82: Southern online travel market, growth rates, by sector Figure 83: Trends in Southern online travel market, direct versus intermediary sales Figure 84: Trends in Southern online travel market, direct versus intermediary sales as percentages Figure 85: Top Spanish high street travel agents, 2007 Figure 86: Most visited Spanish travel websites (‘000) Figure 87: Trends in Eastern online travel market Figure 88: Trends in Eastern online travel market Figure 89: Trends in Southern online travel market, by sector Figure 90: Eastern online travel market, growth rates, by sector Figure 91: Trends in Eastern online air travel market Figure 92: Eastern Online travel market in 2007, by sector Figure 93: Trends in Eastern online travel market, direct versus intermediary sales Figure 94: Trends in Eastern online travel market, direct versus intermediary sales as % Figure 95: European travel market size - online versus offline Figure 96: European market growth rates, past and future Figure 97: Trends in European travel market, by sector, past and future Figure 98: Internet penetration, last three months Figure 99: Percentage of individuals who ordered travel and holiday accommodation over the Internet in the last 12 months Figure 100: Trends in European Online travel market Figure 101: Trends in European Online travel market, by country Figure 102: Growth rates European online market, by country Figure 103: European Online travel market, by sector Figure 104: Online distribution, by country Figure 105: European Travel market, by sector Figure 106: European Online travel market, by sector Figure 107: European transport market size in 2007: online versus offline, by sector Figure 108: International airline passenger traffic market shares in 2007, by region, in terms of Revenue Passenger Kilometres (RPK) Figure 109: Air passenger traffic in Europe 2007 (actual ticketed passengers) Figure 110: International scheduled passenger traffic Figure 111: International scheduled passenger traffic, capacity and load factor Figure 112: Jet fuel prices on May 23rd 2008 Figure 113: Trends in the European airline ticket market, by type Figure 114: Airline market growth, by type Figure 115: Europe's largest airlines, by total scheduled passengers carried 2005-2007 Figure 116: Trends in air ticket sales - Online versus offline Figure 117: Percentage of airticket sales online Figure 118: Trends in online airticket market, by type Figure 119: Top traditional airlines (brands), by overall scheduled passenger revenue, 2007 Figure 120: Major European Low Cost Carriers by estimated online revenue Figure 121: European airticket market, 2007, by type and country Figure 122: Trends in online airticket market, by country Figure 123: Online percentage of all sales, by country Figure 124: Online air ticket sales, by type and country Figure 125: European airports, passengers Figure 126: Top 25 European airports, according to low cost arrivals in the first 6 months of 2007 Figure 127: Low Cost Carrier movements and market shares in Europe Figure 128: Trends in European Train travel market, by country Figure 129: Trends in European train ticket sales - Online versus offline Figure 130: Percentage of train ticket sales online Figure 131: Trends in online train ticket market, by country (2007) Figure 132: Trends in online train ticket market, by country Figure 133: Proposed high speed rail network Figure 134: Trends in European transport market, by sector Figure 135: Trends in European ‘other' transport sector, by country Figure 136: European ‘other' transport sector 2007, by country Figure 137: Online European car rental and car ferry markets, by country Figure 138: Trends in Online car rentals, by market Figure 139: Trends in Online car ferry sales, by country Figure 140: Trends in UK Online coach ticket sales Figure 141: Top 25 European airports, according to low cost arrivals in the first 6 months of 2007 Figure 142: Average hotel prices in 2007, compared to 2006 Figure 143: Average hotel room prices in 2007, by countryuropean Online Travel Report 2008 Figure 144: Trends in European hotel market, by sector Figure 145: Trends in European hotel market, by country Figure 146: Trends in hotel stays, by country (million nights spent) Figure 147: Trends in European hotel expenditure, by country Figure 148: Trends in hotel expenditure - Online versus offline Figure 149: Trends in hotel expenditure - Online versus offline as percentages Figure 150: Percentage of hotel sales made online in 2007, by product and country Figure 151: Growth rates in online hotel expenditure, by country Figure 152: European online accommodation market 2007, by sector and country Figure 153: European online hotel distribution, by country Figure 154: Top hotel chains by estimated online sales in the European market Figure 155: Europe's largest hotel chains Figure 156: Europe's largest hotel brands Figure 157: Trends in European package tour market, by sector Figure 158: Trends in European hotel market, by country Figure 159: Package tour participants 2007, by country (‘000 people) Figure 160: Trends in European package tour expenditure, by country (€ pp) Figure 161: Trends in package tour expenditure - Online versus offline Figure 162: Trends in percentage of package tour sales - online vs. offline Figure 163: Percentage of package tour sales made online in 2007, by country Figure 164: Growth rates in online package tour expenditure, by country Figure 165: Online package tour sales, by country Figure 166: European online package tour distribution, by country Figure 167: Top tour operators by estimated online sales in the European market Figure 168: Trends in European cruise market Figure 169: European cruise market 2007, by country Figure 170: Trends in European hotel market, by country Figure 171: European cruise passengers, by country (‘000s) Figure 172: Cruise destinations, by country (%) Figure 174: European intermediary online revenue, by sector Figure 175: Trends in European intermediaries, by sector Figure 176: Trends in European online intermediary revenue, by country Figure 177: European intermediary online revenue, by country as percentages Figure 178: Online intermediaries 2007 in the European market Figure 179: Online intermediaries in the European market, by country Figure 180: Trends in online distribution proportions Figure 181: Trends in online European distribution Figure 182: Distribution in European online travel market, by sector Figure 183: Trends in online distribution, by product Figure 184: Proportion of each distribution method, by travel product Figure 185: Trends in air ticket distribution Figure 186: Trends in hotel distribution Figure 187: Distribution in European online travel market, by country Figure 188: Proportional distribution in European online travel market, by country Figure 189: Proportional distribution in European online travel market, by country
Appendix A List of Low Cost Carriers in Europe by country
The European Online Travel Report 2008 has been produced by EyeforTravel Research using a combination of secondary and primary research.
Market size definition
In this report the European travel market and specific sector sizes are defined as ‘travel sales' to people residing in Europe. Correspondingly, for individual markets and regions, the ‘travel market' is the value of ‘travel sales' to people residing in these countries or regions and therefore represents the travel expenditure of a particular market. The figures included in this report represent consumer expenditure on domestic travel (travelling within the country of residence) combined with outbound travel (travel to any international destination), thus valuing the total travel spend of particular nations. All figures therefore exclude inbound travel values (foreign expenditure in a particular country).
Online market figures - calculation/methodology
The online market figures are the sum of estimated online sales in the European market, from as many of the largest online marketers as possible. These major marketers are assumed to represent about 90% of the total European online travel market. The remaining 10% is then added, to reach a grand total. The online sales in the European market from the small marketers are assumed to be split in the same way as the identified big marketers. The sources for the big marketers' online sales are numerous, but are generally published sources such as annual accounts, press releases and website traffic statistics. The estimates have been developed, updated and adjusted one by one over a period of more than 5 years. However, it must be taken into consideration that, even when examining published data, there is an element of interpretation in reaching an actual estimate of online sales.
More sources are continuously included, and figures from previous years may therefore have been adjusted slightly. Please note, where IPK International figures are quoted, these are based on international trips, and include business trips, as reported by survey respondents, whereas our figures are based solely on leisure travel expenditure, and include both national and international travel expenditure.
