Online bookings in the European travel market are expected to grow by 7% in 2015, despite economic and geopolitical challenges.
Website sales increased 8% in 2013 despite continued economic issues across Europe and this is set to continue to rise at a similar rate through 2016, according to the latest PhoCusWright report.
Gross bookings online also surpassed the EUR100 billion mark in 2013, with the research firm saying consumers will continue to ‘evolve toward digital channels’.
It also means a higher threat from suppliers, which are said to control 60% of the total online market. However it’s the online travel agencies that are considered to be pulling business away from offline channels faster.
“While growth in the total travel market has slowed, there is still ample opportunity to shift market share between Europe’s many travel intermediaries and suppliers,” said Luke Bujarski, director, research at PhoCusWright.
What could impact European travel?
Luke Bujarski, PhoCusWright
“Tension between the EU and Russia over territories in the Ukraine and the subsequent collapse of the Russian ruble stunted travel from Russia to Western Europe. Meanwhile, political strife in Northern Africa and the Ebola epidemic in West Africa prompted many would-be visitors to the continent, particularly German and French travellers, to vacation within Europe instead. At the same time, acceleration in the US economy will likely increase trade between Europe and the US, driving demand for business travel to and from Europe. Falling oil prices and a weak euro relative to other global currencies could also reinvigorate the broader economy and travel demand as a whole.”