The Internet has well and truly proved itself as a major distribution channel for the travel industry. The UK online travel market is expected to reach €7.3 billion by 2007, up from €2.2 billion in 2002. This growth can be attributed to growing Internet penetration as well as increased confidence amongst users, together with improved technology, products and content from online travel firms. As an intangible product, travel is an obvious choice for online purchasing and with the right Web content and advertising, a holiday can be sold as effectively as with a brochure and/or a personal conversation.

As successful as the Internet has been for selling holidays, its importance as a research tool must not be overlooked. Consumer research for this holiday report highlights that some 44% of holidaymakers used the Internet to research a holiday, with 32% making an actual booking. Thus there is still potential to grow the market as initial ‘lookers’ are turned into ‘bookers’ by effective Web management.

This report offers a unique analysis of this growing market and outlines prospective future developments that will influence the shape of the industry in the short and medium term. These include:

Patterns of internet usage, such as rising uptake levels amongst over 55s

Strong signs of a recovery by the travel industry after the damage to sales by September 11th and the war in Iraq

The Internet’s appeal to cash-rich, time-poor holidaymakers

Details of the trend for researching holiday destinations online before making a booking

The dominance of travel, and flights in particular, as online purchases

The effects of technological developments on growth within the sector

An outline of the major players in the market.

This Special Report focuses on the UK holiday market, both domestic and outbound, with an emphasis on the outbound market.