EngineWorks

In December 2008, PhoCusWright, the travel industry’s research authority and annual presenter of The PhoCusWright Conference (which EngineWorks representatives attended in Hollywood, California last November), released a study that identifies the most popular type of online booking methods used by today’s traveler.

As depicted in the eMarketer graph below, this study found that more than sixty percent (60%) of online travel purchases were made through direct supplier sites (e.g., Orbitz, Expedia, etc.) in 2008, compared with less than forty percent (40%) of purchases through online travel agencies.

Interestingly, however, PhoCusWright stated that this market share data alone does not tell the full online travel story.  Both of these types of travel booking sites appeal to two distinctively different types of traveler.  Leisure travelers, who may only make a few trips a year, are more concerned with price, and thus prefer online travel agencies.  Whereas, unmanaged business travelers, who make numerous trips on a regular basis and are more focused on scheduling and convenience, prefer direct supplier sites.

The ‘take-aways’ from this study is that online travel agencies should implement marketing campaigns that are designed to convert price-sensitive site visitors to customers, and direct supplies should cater to their audience using personalization, loyalty, and community.  The most effective means of accomplishing these objectives is through highly targeted Paid Search Marketing campaigns, and robust Social Media Marketing strategies, respectively.