JUPITERRESEARCH FORECASTS THE U.S. ONLINE TRAVEL INDUSTRY WILL REACH $104 BILLION BY 2010(New York, NY - November 3, 2005) - JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), finds that the U.S. online travel market has experienced strong growth over the past year and forecasts that the market will reach $68 billion by the end of 2005, up from $57 billion last year, and grow to $104 billion in 2010. In the new report entitled: "U.S. Travel Forecast, 2005 to 2010," JupiterResearch details its findings, which also indicate that revenues for the travel industry have grown in 2005 as a result of increased inventory, passenger numbers and prices across the air, car, cruise and hotel industries.
"We are seeing strong increases in revenue across all segments of the online travel industry," said Diane Clarkson, Analyst at JupiterResearch. "Higher fuel costs will remain a major challenge for the travel industry in the near future, as the industry struggles to compensate for additional costs while remaining price competitive," added Clarkson.
Supplier Web sites continue to represent the majority of online travel sales, capturing 56% of online travel revenue in 2005. Travel search engines such as SideStep and Kayak remain relatively new and have not yet gained sizeable traction. Supplier Web sites have not yet seen their sales significantly impacted by these search engines.
A major driver of the overall growth is business travel, which is expected to grow substantially. Increasingly sophisticated managed booking tools and increased business traveler compliance with company booking policies will spur the online managed business travel market to reach $31.5 billion by 2010, up from $15.1 billion in 2005.
"We expect the online travel market to continue its strong growth over the next five years and to represent 34% of all travel spending in 2010," said David Schatsky, Senior Vice President of Research at JupiterResearch. "The online share of total travel spending in the U.S. is quite high and its lower distribution costs are an important factor in holding down expenses for the travel industry," added Schatsky.
The complete findings of this forecast are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For more information on the forecast or JupiterResearch's Travel research service please contact Kieran Kelly, Vice President of Global Sales and Client Services at 1-800-481-1212 or [email protected].
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Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading global provider of original information, images and research for information technology, business and creative professionals. Jupitermedia includes JupiterImages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like BananaStock, Brand X, FoodPix, Botanica, Nonstock, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Goodshoot, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, the online media division of Jupitermedia which operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 18 million users and generate over 300 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets.
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