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Online bookings cut middlemen

The use of the Internet for online bookings in the U.S. business travel Industry is resulting in the elimination of middlemanNegative trends in business travel were reversed in 2004, following a year of accelerated U.S. economic growth.

All segments of business travel analyzed in Research and Markets’ recent report—lodging, air travel and car rental—experienced growth.

Current conditions in the lodging and car rental segments suggest even stronger growth in 2005.

The nature of distribution in the industry has changed greatly in the past five years with the advent of online booking and Internet travel sites. No longer content to pay fees to traditional agencies and global distribution systems, travel suppliers (airlines in particular) are devising ways to circumvent the middleman with new direct-to-consumer platforms.

Exclusive consumer research reveals the attitudes, needs and behavior business travelers, with analysis broken down both by demographic characteristics, and by travel and booking methods.


Business travelers are changing, as Baby Boomers retire and Gen Xers and Echo Boomers begin to travel more for their jobs.

New low-cost carriers and upscale hotels are already targeting brands to the younger generation of travelers, offering amenities enhanced by the latest technology trends.

In the upcoming decade, travel suppliers must adapt to the trend-driven lifestyle of Gen Xers and Echo Boomers, in order to avoid price commodization and increase customer loyalty.

Inflation-adjusted growth of 4% is forecasted for 2005-10, compared to a decline of 12% during 2000-05.

Lodging will lead the way due to increasing demand in a market that did not add rooms over a three-year period (2002-04). Air travel will perform stronger than in the past five years.

This report covers travel conducted for business purposes, with fares paid by the business.

Because no airline forces passengers to disclose the purpose of their travel, there is no precise industry measurement of business travel.

The closest approximation is found by tallying sales of first-class, business class, and full-fare tickets, also known as Y-Class and H-Class tickets.

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