Travel Spending On Web Triples Over 1996

A new report erases any doubt as to whether the Internet is dramatically affecting travel planning.

And travel spending.

The report, released by the nonprofit Travel Industry Association of America, finds that Internet users booked $827 million in travel products and services on line in 1997.

These purchases included air travel, lodging, car rentals, packaged vacations and other products.

This expenditure tripled the $276 million spent on line on travel in 1996 and represents the largest single segment on the overall on-line consumer market.

By 2000, the report projects that on-line travel spending will top $4.7 billion. By 2002, it is expected to reach $8.9 billion.

“Clearly the Web is revolutionizing the way that consumers plan and buy their travel,” says William S. Norman, president of the TIA, which represents all components of the industry.

Granted, the “revolution” is in its infancy. Worldwide, the TIA assesses travel as a $473 billion industry. And the overwhelming majority of purchases are still made through traditional travel agencies and through direct spending.

Also, the TIA report finds that six large full-service sites generate 75 percent of all on-line travel revenue: Travelocity/Easy Sabre (http://www.travelocity.com or http://www.easysabre.com), which more than doubled the nearest competitor in 1996 revenue; Internet Travel Network (http://www.itn.com); Preview Travel (http://www.previewtravel.com); American Express Interactive Travel Services (http://www.americanexpress.com/travel); Travel Web (http://www.travelweb.com); and Microsoft Expedia (http://www.expedia.com).

Still, the trend is evident.

In 1996, less than 1 percent of overall airline ticket revenue came from on-line sources.

By 2000, this percentage is expected to reach 5.1 percent; by 2002, it will climb to 8.2 percent, according to the report.