Good connection: Rising mobile and internet connectivity has led to revenue growth

The Online Travel Bookings industry has grown strongly over the past five years. The rise of online purchasing channels has disrupted the tourism supply chain, increasing the choices available for consumers. Consumers are increasingly integrating internet and mobile connectivity into their everyday lives, and are becoming more comfortable booking travel online. In addition, Australians have travelled more regularly over the past five years, both domestically and abroad. This has heightened demand for the industry's services and led to strong growth. Industry revenue is expected to increase at an annualised 16.0% over the five years through 2017-18, to $1.1 billion. This includes expected growth of 10.6% in 2017-18, slightly lower than the overall five-year period's growth rate...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
16.0%
Forecast Growth 18-23
Profit
Employment
2,205
Businesses
47

Industry Threats & Opportunities

  • Cheaper airfares and a weaker Australian dollar have helped drive inbound tourist numbers
  • The expansion of low-cost international airlines into the local market has aided international travel demand
  • The increasing sophistication of mobile technology will help fuel industry growth
  • Industry Report - Starting a New Business Chapter

    The Online Travel Bookings industry exhibits low entry barriers. The industry's high rate of technological change, wide profit margins and strong demand facilitates the entry of new players. In particular, new entrants that provide niche or innovative services, like home-sharing network Airbnb, are generally able to enter the industry and gain market share. The industry's moderate capital requirements also allow smaller players to enter the industry.The prevalence of large, well-recognised firms such as Expedia and Booking.com acts as a deterrent for potential entrants. The...purchase to read more.

    Additional Insights for the Online Travel Bookings Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Online Travel Bookings Industry are

  • Ability to quickly adopt new technology
  • Provision of superior after-sales service
  • Having marketing expertise
  • IBISWorld analysts also discuss how external factors such as International travel by Australians and Internet connections in the Online Travel Bookings industry impact industry performance..

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    What's in this report

    What is the Online Travel Bookings Industry?

    Industry players provide online travel reservation and booking services, taking a percentage of the total transaction value booked through their websites to generate revenue. The industry excludes firms that also have a physical retail presence. The industry also excludes metasearch websites, as travel bookings cannot generally be made through these websites.

    Industry Products
  • Flight bookings
  • Accommodation bookings
  • Other services
  • Industry Activities
  • Online international flight bookings
  • Online domestic flight bookings
  • Online accommodation bookings
  • Other online travel bookings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel by Australians
  • Internet connections
  • Real household discretionary income
  • US dollars per Australian dollar

  • Current Performance
  • Technological change
  • Tourism trends
  • Structure
  • Participation

    and profit

  • Chart: Revenue Growth

  • Industry Outlook
  • Changing trends
  • Competition
  • Participation

    and profit

  • Table: Online Travel Bookings Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Travel Bookings Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Domestic Airlines
  • Hotels and Resorts
  • International Airlines
  • Telecommunications Services
  • Water Passenger Transport

  • Products & Services
  • Accommodation bookings
  • Flight bookings
  • Other services
  • Chart: Online Travel Bookings Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 15 to 34
  • Consumers aged 35 to 59
  • Consumers aged 60 and over
  • Chart: Major Market Segmentation for the Online Travel Bookings Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Marketing
  • Wages
  • Depreciation, utilities and rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Online Travel Bookings

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Travel Bookings Industry

  • Industry Globalization
    Expedia Australia Pty Limited, Booking.com (Australia) Pty Limited, Webjet Limited, Lux Group Limited,
  • Table: Expedia Australia Pty Limited - financial performance
  • Table: Booking.com (Australia) Pty Limited - financial performance
  • Table: Webjet Limited - financial performance
  • Table: Lux Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Online Travel Bookings Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Online Travel Bookings Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bandwidth
  • This measures the amount of data transference through a computer network. Also known as channel capacity.
  • Metasearch Websites
  • These sites aggregate online travel products, allowing consumers to easily compare them. Consumers are then redirected to industry firms' websites when clicking on a link to book a product.
  • Secure Sockets Layer (Ssl)
  • A security protocol designed to provide communication security over the internet.
  • Total Transaction Value (Ttv)
  • This measures the total value of the services offered by the travel provider.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Travel Bookings market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Travel Bookings:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Travel Bookings market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Travel Bookings, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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