Recent independent research reports that 88 percent of online consumers used the internet in purchasing and planning their 2005 summer vacations. Through studying online traffic and conducting surveys of online travel users, Feedback Research of Redwood City, California confirmed what many marketers have long suspected -- that the internet still reigns supreme for consumers' travel research needs.
Feedback Research, a division of Claria Corporation, collected data between April 1 and July 1, 2005, during the three months leading up to summer vacation travel. Not only did the internet play a role in vacation planning for 88 percent of consumers, research also found that 61 percent of respondents going on summer vacation this year had purchased or planned to purchase airline tickets online. This marks a 12-point increase from last year.
Perhaps the study's most significant finding is what drives online travel research in the first place. Overwhelmingly, all signs point to price comparison. Among survey respondents, 53 percent indicated they would travel with the company that offered the lowest price. Furthermore, of those respondents who did purchase travel online, a whopping 78 percent chose sites based on good prices/rates, while only 28 percent made their selection because of loyalty or frequent flier programs.
Related to the importance of low prices is the popularity of site-hopping among online travel sites. In the likely effort of combing the web for top bargains, more than 60 percent of users who viewed Hotwire.com also viewed Orbitz.com, Expedia.com, or Travelocity.com.
Not surprisingly, the site-hopping phenomenon also exists between major airline sites and general travel sites. Feedback Research found that over half of those who viewed Delta.com, United.com or Southwest.com during the research period, also viewed Orbitz.com. The bottom line? Price matters when it comes to travel spending, and the importance of price as a driver seems to dictate purchasing behaviors in the online travel category.
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