EUROPEAN AIRLINES SLOW TO JUMP ON THE
INTERNET eCOMMERCE BANDWAGON
-- PhoCusWright Announces Results of the First European Internet Travel Survey Targeting Airlines --
Brussels, Belgium, 7, May 1999 – European airlines are, as a whole, slow to utilise the power of the Internet, concluded the PhoCusWright 1999 European Internet Travel Survey revealed today at PhoCusWright LIVEurope99, the first European online travel industry conference. The survey results were unveiled in a unique, interactive session where delegates were given the same questions used to survey the airline participants. Using hand-held electronic polling devices PhoCusWright LIVEurope99 delegates contributed real-time survey responses, which were then compared to the airline survey results. PhoCusWright, Inc. is a leading strategy and research company for the online Internet travel marketplace.
"The results of the 1999 European Travel Survey validate our expectations in that European-based airlines are slow to embrace travel eCommerce. At the same time, we found these same companies intend to harness the enormous growth potential of Internet travel with many initiatives underway this year," said Philip C. Wolf, president and CEO of PhoCusWright and conference producer. "We can expect to see more and more European airlines taking steps to capitalize on this phenomena as Internet travel bookings become increasingly popular in Europe," he added.
PhoCusWright, Inc. polled nine leading European airlines to determine the nature and direction of their Internet strategies. Airlines surveyed include Air France, Alitalia, British Airways, Iceland Air, KLM, Lauda Air, Lufthansa, Sabena and Virgin.
Among the leading airlines polled, three did not yet have booking engines on their Web sites, and two just recently launched booking sites using third party providers. The
Internet represents a small percent of total bookings for most airlines. On average, airlines expect 1999 Internet bookings to represent a mere 1.5% of total tickets sold, but expectations are high. The airlines expect Internet bookings to increase about 200 - 300% over the previous year. New initiatives are expected to drive traffic, build customer loyalty, save costs and create new business opportunities.
Other key findings include:
In order to extend their brand and develop this burgeoning Internet market, airlines are offering cyberfares, Internet only pricing, two-for-one deals and free frequent flyer miles in order to entice their customers to book online. These efforts will propel the growth of what is recognized as the world’s largest industry — travel and tourism. As a matter of fact, the travel industry is growing faster than global GDP.
PhoCusWright, Inc. is a leading independent strategy and research company that helps its clients understand the online Internet travel marketplace and make competitively advantaged decisions. PhoCusWright equips, connects and motivates industry executives to advance their business with speed, confidence and clarity.
Subscription packages include intense, topical PhoCusWright Reports, the digital Insighter collection, strategy sessions, access to analysts, custom research and The PhoCusWright Yearbook. Additionally, LIVE and LIVEurope are the definitive forums for the online Internet travel marketplace.
###