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US online travel sales to hit $128bn by 2011
Travellers would rather click than phone

By Dan Ilett

Published: Tuesday 14 November 2006

US online travel companies are to sell $128bn worth of plane tickets and hotel bookings by 2011, new research suggests.

A report from JupiterResearch predicts 38 percent of travel revenue will be booked online in 2011.

Business Travel

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Higher fares and an increase in the number of people flying have driven total air revenues to $138bn this year, with $49bn of that spent online.

Greater consumer purchasing power and improved online compliance in business travel will spur the growth of the industry, the report says.

Additionally, hotels will continue to see a shift to online sales as more travellers use websites in preference to making reservations on the telephone.

David Schatsky, president of JupiterKagan, said the brisk growth in revenues is accompanied by a shift of market share in favour of supplier sites.

A study carried out for the report found buyers indicated a preference for airline websites as a way to avoid service fees and gain loyalty points.