Research Highlights: PhoCusWright's EUROPEAN ONLINE TRAVEL OVERVIEW Sixth Edition

Transcription

1 Research Highlights: PhoCusWright's EUROPEAN ONLINE TRAVEL OVERVIEW Sixth Edition A comprehensive analysis and forecast of European leisure/unmanaged business online travel trends by sector, segment and channel.

2 PhoCusWright Inc. 1 Route 37 East, Suite 200 Sherman, CT USA fax 903, Sevilla Raheja Exotica Madh Island, Malad W. Mumbai India Research Highlights: PhoCusWright s European Online Travel Overview Sixth Edition Written by Nina Bartholin, Jesús Salgado Criado, Ralph Merten, Peter O Connor, Carroll Rheem, Friederike Schwarz, and Maria G. Tuttocuore Philip C. Wolf President and CEO Carol Hutzelman Senior Vice President Christine Lent Vice President, Finance and Administration Bruce Rosard Vice President, Sales and Marketing Lorraine Sileo Vice President, Research Edited by Colie Hoffman, Carroll Rheem and Lorraine Sileo Research Highlights: PhoCusWright's European Online Travel Overview is published by PhoCusWright Inc. The information contained herein is derived from a variety of sources. While every effort has been made to verify the information, the publisher assumes neither responsibility for inconsistencies or inaccuracies in the data nor liability for any damages of any type arising from errors or omissions. All PhoCusWright Inc. publications are protected by copyright. It is illegal under U.S. federal law (17USC101 et seq.) to copy, fax or electronically distribute copyrighted material beyond the parameters of the License or outside of your organization without explicit permission. ii 2010 PhoCusWright Inc. All Rights Reserved PhoCusWright Inc. All Rights Reserved.

3 Contents Research Highlights: PhoCusWright's Research Highlights: European PhoCusWright's Online Travel European Overview Online Travel Overview November Nov Table Listings of Full Report Table of Contents of Full Report Section One The European Online Travel Overview 1 Section Two The French Online Travel Overview 19 Section Three The German Online Travel Overview 39 Section Four The Italian Online Travel Overview 63 Section Five The Scandinavian Online Travel Overview 79 Section Six The Spanish Online Travel Overview 97 Section Seven The U.K. Online Travel Overview 111 OVERVIEW Figure European Online Leisure/ Unmanaged Business Travel, Gross Bookings, and as a Percentage of Total Travel Market, ( B) Figure European Online Leisure/ Unmanaged Business Travel by Gross Bookings ( B), Online Growth (%) and as a Percentage of Total Travel Market, Figure European Travel Market by Channel and Sector: Share (%), Figure U.S., Europe and Asia Pacific Online Leisure/Unmanaged Business Travel Share of the Total Travel Markets, Figure European Online Travel Agency and Supplier Website Gross Bookings by Segment ( M), Figure European Online Supplier Direct Travel Market (Leisure/ Unmanaged Business) by Segment, 2009 vs. (%) Figure European Online Leisure/ Unmanaged Business Share of Gross Bookings, 2009 vs. Figure Key European Travel Markets, Total Market and Online Leisure/ Unmanaged Business Gross Bookings, ( B) and Share (%), 2009 Figure European Markets, Gross Domestic Product Growth (%), Figure European Online Travel (Leisure/Unmanaged Business) Growth Rates by Market (%), Figure European Online Travel (Leisure/Unmanaged Business) Supplier Website and OTA Growth Rates by Segment (%), 2009 Figure European Airline Total Gross Bookings ( B) and Channel by Online Penetration (%), Figure European Traditional Airline Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Low-Cost Carrier Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Hotel Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Rail Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Car Rental Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Tour Operator Gross Bookings ( B) by Channel and Online Penetration (%), Figure European Online Travel Agencies and Tour Operators Online Gross Bookings ( B) and Growth (%), Figure Top Five Pan-European Online Travel Agencies, Share Among these Agencies, 2008 and 2009 Figure 1.21a 15 European Online Travel Agencies, Estimated Gross Bookings ( M), Figure 1.21b 15 European Online Travel Agencies, Estimated Market Share (%), Figure 1.21c 16 European Online Travel Agencies, Growth Rates (%), FRANCE Figure The French Travel Market ( B) and Online Growth Rates (%), Figure French Online Travel Market, OTA vs. Supplier Direct Share (%), 2009 Figure French Share of European Total and Online Travel Market (%), 2009 vs. Figure French Online Travel Supplier Direct Share (%), 2009 and Figure French Online Travel Market, ( M) Figure French Airlines, Total ( B) and Figure French Hotels, Total ( B) and Figure French Rail, Total ( B) and Figure French Car Rental, Total ( B) and 2010 PhoCusWright Inc. All Rights Reserved.. iii

4 Figure French Tour Operators, Total Penetration (%), Figure French Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), ( M) Figure French Online Travel Agencies, Market Share (%), 2008 and 2009 GERMANY Figure The German Travel Market ( B) and Online Growth Rates (%), Figure German Online Travel Market, OTA vs. Supplier Direct Share (%), 2009 Figure German Share of European Total and Online Travel Market (%), 2009 vs. Figure German Online Travel Supplier Direct Share (%), 2009 and Figure German Online Travel Market, ( M) Figure German Traditional Airlines, Penetration (%), Figure German LCCs, Total ( B) and Figure German Hotels, Total ( B) and Figure German Rail, Total ( B) and Figure German Car Rental, Total ( B) (%), Figure German Tour Operators, Penetration (%), Figure German Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), Figure Online Travel Agencies in the German Market, Estimated Market Share, 2008 and 2009 ITALY Figure TThe Italian Travel Market ( B) and Online Growth Rates (%), Figure Italian Online Travel Market, OTA vs. Supplier Direct Share (%), 2009 Figure Italian Share of European Total and Online Travel Market (%), 2009 vs. Figure Italian Online Travel Supplier Direct Share (%), 2009 and Figure Italian Online Travel Market, ( M) Figure Italian Traditional Airlines, Penetration (%), Figure Italian LCCs, Total ( B) and Figure Italian Hotels, Total ( B) and Figure Italian Rail, Total ( B) and Figure Italian Car Rental, Total ( B) (%), Figure Italian Tour Operators, Total Penetration (%), Figure Italian Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), Figure Online Travel Agencies in the Italian Market, Estimated Market Share, 2008 and 2009 iv 2010 PhoCusWright Inc. All Rights Reserved.

5 SCANDINAVIA Figure The Scandinavian Travel Market ( B) and Online Growth Rates (%), Figure Scandinavian Online Travel Market, OTA vs. Supplier Direct Share (%), 2009 Figure Scandinavian Share of European Total and Online Travel Market (%), 2009 vs. Figure Scandinavian Online Travel Supplier Direct Share (%), 2009 and Figure Scandinavian Online Travel Market, ( M) Figure Scandinavian Traditional Airlines, Total ( B) and Online Direct Penetration (%), Figure Scandinavian LLCs, Total Penetration (%), Figure Scandinavian Hotels, Total Penetration (%), Figure Scandinavian Rail, Total Penetration (%), Figure Scandinavian Car Rental, Penetration (%), Figure Scandinavian Tour Operators, Total ( B) and Online Direct Penetration (%), Figure Scandinavian Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), Figure Online Travel Agencies in the Scandinavian Market, Estimated Market Share, 2008 and 2009 SPAIN Figure The Spanish Travel Market ( B) and Online Growth Rates (%), Figure Spanish Online Travel Market, OTA vs. Supplier Direct Shares (%), 2009 Figure Spanish Share of European Total and Online Travel Market (%), 2009 vs. Figure Spanish Online Travel Supplier Direct Shares (%), 2009 and Figure Spanish Online Travel Market, ( M) Figure Spanish Traditional Airlines, Penetration (%), Figure Spanish LCCs, Total ( B) (%), Figure Spanish Hotels, Total ( B) (%), Figure Spanish Rail, Total ( B) (%), Figure Spanish Car Rental, Total Penetration (%), Figure Spanish Tour Operators, Penetration (%), Figure Spanish Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), Figure Online Travel Agencies in the Spanish Market, Estimated Market Share, 2008 and 2009 UNITED KINGDOM Figure The U.K. Travel Market ( B) and Online Growth Rates (%), Figure U.K. Online Travel Market, OTA vs. Supplier Direct Share (%), 2009 Figure U.K. Share of European Total and Online Travel Market (%), 2009 vs. Figure U.K. Online Travel Supplier Direct Share (%), 2009 and Figure U.K. Online Supplier Direct and Online Travel Agency Gross Bookings, ( M) Figure U.K. Traditional Airlines, Total ( B) and Online Direct Penetration (%), Figure U.K. LCCs, Total ( B) and Online Direct Penetration (%), Figure U.K. Hotels, Total ( B) and Online Direct Penetration (%), Figure U.K. Rail, Total ( B) and Online Direct Penetration (%), Figure U.K. Car Rental, Total ( B) (%), Figure U.K. Tour Operators, Total ( B) and Online Direct Penetration (%), Figure U.K. Online Travel Agencies, Online Direct Gross Bookings ( B) and Growth (%), Figure Online Travel Agencies in the U.K. Market, Estimated Market Share, 2008 and PhoCusWright Inc. All Rights Reserved.. v

6 The European Online Travel Overview Carroll Rheem Overview The swiftness and severity of the European travel industry s decline in 2009 did not come as a surprise. Taking a cue from the ample warning signs provided in 2008, airlines cut capacity and hotels did what they could to brace themselves for the impact of the global recession. However, the brutality of 2009 proved to be too much for a number of companies, particularly as the prior year was also weak. While difficult times are unpleasant all around, the pruning effects on the fragmented travel landscape have strengthened the industry for the future. The industry becomes more fruitful after every round of cuts as feeble companies are weeded out. Survivors become stronger as they learn to operate more efficiently. These lessons are coming in quite handy for 2009 s alumni. While 2010 has brought needed relief from the drought, it is more of a sprinkle than a downpour. European travel growth is projected at just 2.2% for Macroeconomic factors are the key culprits, but complications from the volcanic ash cloud created a frustrating setback to recovery as well. While northern markets such as the U.K. bore the brunt of Mother Nature s blow, other markets such as Spain are suffering from deep economic wounds that are suppressing travel. Amid the doom and gloom of the recession, another healthy element of change has occurred consumers are trying new things. Breaking old habits, particularly among cultures that do not always subscribe to the new is better philosophy, often requires an impetus for change. Travelers once hesitant to book online found themselves warming to the idea as they turned to the Internet to find the most affordable options. As a result, online bookings managed to grow 1.5% to reach 66.4 billion in This trend helped drive the total market share of online leisure and unmanaged business bookings to 31% in 2009 a substantial jump from 27% in Figure 1.3 European Travel Market by Channel and Sector: Share (%), 100% 80% 60% 40% 20% 0% 73% 69% 67% 65% 64% 9% 11% 12% 13% 13% 18% 20% 21% 22% 23% Corporate and Offline Leisure/Unmanaged Business OTA Supplier Websites Note: projected; Totals may not add to 100% due to rounding Source: PhoCusWright's European Online Travel Overview Sixth Edition 2010 PhoCusWright Inc. All Rights Reserved PhoCusWright Inc. All Rights Reserved. Page 1

7 Another contributor to the jump in penetration, however, was the disproportionately large drop in corporate travel bookings. Business travelers who didn t find their travel budgets cut altogether were forced to find cheaper alternatives to get the job done. Initial business travel recovery in Europe looks encouraging in 2010, as it does in the U.S. However, most travel companies hesitate to be too optimistic about a speedy recovery. Key Markets Gross domestic product (GDP) projections offer a view into macroeconomic conditions facing travel companies and the markets in which they operate. While the major European markets with the notable exception of Spain are expected to achieve GDP growth in 2010, the average for the EU 15 (0.9%) remains substantially below that of the U.S. (2.8%) (see Figure 1.9). The travel industry is clearly feeling the prolonged malaise in European economies; consumers remain conservative with their travel expenditure and companies remain reluctant to loosen business travel constraints. While U.S. total travel market growth is expected to reach 10% by the end of 2010, 1 the total European travel market is only expected to increase by 2.2%. Online leisure and unmanaged business bookings growth varied greatly across European markets in 2009 (see Figure 1.10). German websites achieved the strongest gains and were propelled by two key market characteristics: 1) resilience in consumers prioritization of travel, and 2) relatively low online penetration. According to PhoCusWright s European Consumer Travel Report (July 2010), Germans are more likely to consider travel a very important part of their lifestyles than travelers in the U.K. and France. This prioritization helped buffer Germany s travel industry it dropped just 6.7% in 2009 while Europe as a whole fell 11%. Value was, of course, also of key importance and German travelers turned to 1) PhoCusWright s U.S. Online Travel Overview Tenth Edition (November 2010) Figure 1.9 European Markets, Gross Domestic Product Growth (%), % 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% EU 15 Avg. U.K. Germany Spain France Italy Sweden Denmark Norway 0% U.S. Note: 2010 projected Source: Eurostat 2010 PhoCusWright Inc. All Rights Reserved. Page PhoCusWright Inc. All Rights Reserved.

8 the Internet more than ever before to make the most of their travel budgets. In sharp contrast, the U.K. suffered online bookings declines in both 2008 and However, this trend is driven completely by the loss of the pound against the euro. In pounds, U.K. online bookings actually grew by a very healthy 15% in 2008 and another 5.8% in Spain s 2009 decline of 4.7%, however, does reflect the true market trend. The drop may seem surprising given Spain s low online penetration. The widespread financial strife among Spaniards simply devastated business across Spanish points of sale, both online and offline. Iberia was a key exception to the trend, as the airline was able to increase website revenues despite a brutal 21% drop in overall bookings. Over the next several years, online gains in mature markets such as Scandinavia and the U.K. will begin to settle as penetration plateaus. Germany and France (along with Spain and Italy) will maintain slightly higher growth rates for the next several years. Methodology PhoCusWright s European Online Travel Overview Sixth Edition presents the findings from PhoCusWright research on the European leisure and unmanaged business online travel markets in 2008 and This effort was undertaken as a multi-part project to assess the European travel market as a whole with in-depth analyses of six individual European markets: France, Germany, the U.K. (including Northern Ireland), Italy, Spain and Scandinavia. To evaluate the markets, PhoCusWright interviewed executives from over 90 Europe-based airlines, hotels, tour operators, rail companies, OTAs, traditional travel agencies and travel technology companies. European estimates and projections include the first 15 European Union (EU) countries as well as Switzerland and Norway. Unless otherwise indicated, all Internet sales are based on gross bookings that is, the total transaction value of the products sold online in Europe for leisure and unmanaged business travel sites (i.e., consumer-facing Web sites that sell to individuals, including unmanaged business travelers purchasing outside of corporate travel policies). They also include sales from non-eu travel suppliers that are transacted via EU-based online travel agencies. Corporate online booking systems such as Sabre/GetThere and Amadeus/e-Travel are excluded from this analysis. All financial information is based on data obtained from company interviews or publicly available financial reports. Estimates and projections are based on executive interviews, third-party information, Web traffic results, economic indicators, market trends and PhoCusWright analysis. PhoCusWright distribution channel estimates and projections are based on the local market results of pan-european online travel agencies, the results of local OTAs and total gross sales reported by local suppliers. Data is actual for and projected for In Figures, totals may not always add to 100% due to rounding. Non-hospitality suppliers online sales are assigned to the market in which the supplier is headquartered. For example, all online business generated by Lufthansa worldwide is associated with Germany, while all Air France- KLM online revenue is associated with France. Hospitality suppliers gross bookings are based on revenues generated by properties in the country source market. Room revenue for 2010 PhoCusWright Inc. All Rights Reserved. Page 3

9 hotels and guesthouse/bed and breakfast establishments are included. Tour operator sales are assigned to their respective source markets. For example, TUI Travel s U.K. online sales are assigned to the U.K. market and Thomas Cook s German online sales are assigned to the German market. Total market calculations exclude online travel agency gross bookings as well as a portion of tour operator gross bookings these excluded bookings are assigned under supplier segments (e.g., airline, hotel). All currencies are in euros ( ) unless otherwise indicated (as in the U.K. chapter) and converted at the average rate for the period they represent. References to the travel market are understood to cover the total travel market, and traditional travel agency refers to principally offline travel agencies. These are just a few of the findings from PhoCusWright s European Online Travel Overview Sixth Edition. Purchase the full report here: Page PhoCusWright Inc. All Rights Reserved.

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11 903, Sevilla Raheja Exotica Madh Island, Malad W Mumbai India PhoCusWright Inc. 1 Route 37 East, Suite 200 Sherman, CT USA fax