Agents must embrace the online dynamic packaging sector or face dwindling revenues, according to research from Multicom.
The company believes dynamic packaging sales will total £2.4bn and account for almost 35% of the UK travel market by 2007, according to its analysis of sales figures and predictions from industry’s vertically integrated groups and major online players.
Multicom’s calculations value the online dynamic packaging market between £108m-£162m in 2004, representing 2.5%-3.8% of the entire UK online travel market of £4.3bn.
The company, which is playing a key role in powering the leisure travel industry’s internet marketplace through websites including Thomas Cook’s flexibletrips.com, predicts dynamic packaging will be worth between £530m-£740m in 2005. In line with industry forecasts, this figure could rise to as much as £2.4bn in 2007, 34% of the travel market’s total projected value of £7.2bn in that year.
Rob Howell, Multicom managing director said: “Our research underlines the immense power and popularity of online dynamic packaging.
“Multicom’s calculations are based on published independent findings and stock market reports, and are a reference tool for all agents who are looking to grow their businesses. Agents who decide to ignore dynamic packaging online will find themselves competing within a ever declining market.”