Online Share of French Travel Market Grows During Downturn
The French online travel market remains stable amidst global economic challenges. According to PhoCusWright’s French Online Travel Overview Fifth Edition, online leisure and unmanaged business bookings as a share of the total French travel market will grow from 30% in 2008 to 33% in 2009. Online leisure and unmanaged business bookings are projected to remain flat while the overall travel market contracts by 8.7%. The relative strength of online channels during the global downturn has driven the increase in online travel penetration.
“French consumers have adjusted their travel habits in line with the nation’s relatively modest recession in 2009 and French suppliers have suffered less than those in other large leisure market destinations like Spain and Italy,” states Carroll Rheem, director, research at PhoCusWright.
Some sectors are faring better than others as consumers shift their travel patterns. Traditional airlines are the main driver behind the total market decline, as they are projected to drop by 14% in 2009. Hotels, in contrast, are suffering less severely and are expected to decline by 6% in 2009
The French OTA market remains somewhat fragmented, with global, regional and local players each maintaining a significant share. Although growth will slow substantially in 2009, OTAs are expected to benefit from the many consumers looking for travel deals
“In uncertain economic times, consumers need to feel confident that they are getting the best value for their money,” adds Rheem. “Online travel agencies are certainly benefiting from this trend, but competition between them is also extremely fierce. The line between ‘traditional’ and online travel agencies is murky, and French OTAs must compete in a multichannel landscape
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PhoCusWright’s French Online Travel Overview Fifth Edition provides an in-depth look at the performance of the French travel market (2007-2011). The report reviews French market dynamics as well as individual travel verticals including air, hotel, car rental, rail, tour operators and online travel agencies.
This report is a subset of PhoCusWright’s European Online Travel Overview Fifth Edition, a complete review of the European travel market including France, Germany, Italy, Scandinavia, Spain and the U.K. Order now for US$2250..
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