Increased internet connectivity and regular discount airfares has driven industry growth.
Melbourne, Australia (PRWEB) November 17, 2013
Over the five years through 2013-14, the Online Travel Bookings industry has soared. Industry revenue has benefited from the continued uptake of internet technology, as more consumers integrate internet and mobile broadband usage with their everyday lives. IBISWorld industry analyst Ryan Lin states “the industry has also received substantial attention from the increasing number of Australians travelling domestically and abroad, aided by the strong dollar over much of the past five years and greater airline capacity through the Qantas and Virgin rivalry.” Although the Australian economy was affected by the financial crisis during 2007-08 and 2008-09, Australians did not alter much in the way of their planned travels. IBISWorld expects that there was a jump in the uptake of online travel search over these years. As a result of this, the industry has grown phenomenally over the past five years, with revenue increasing at an annualised 16.6% to reach $412.6 million in 2013-14. Revenue is forecast to grow by 14.4% in 2013-14, slightly lower than over the previous five years as the Australian dollar falls in strength. Australians are expected to substitute cheaper domestic travel for the now more expensive international travel.
The industry's robust growth is expected to continue over the next five years. According to Lin, “the lower Australian dollar is expected to restrict the growth of high-value international travel, resulting in slower growth rates for the industry.” Industry revenue is still expected to grow at double-digit rates. This significant growth is expected to be driven by the increasing sophistication of mobile technology and high levels of internet usage, with a larger proportion of consumers choosing travel booking websites than ever before. This is likely to result in higher competition for the industry as profit margins begin to fall and industry operators seek out niche markets.
The Online Travel Bookings industry has a moderate level of market share concentration. Apart from the two major players, Wotif.com Holdings and Webjet, enterprises are quite small and are not expected to hold more than 5.0% of industry revenue individually. Concentration has grown slightly over the past five years. However, it is expected to fall marginally over the next five as enterprise growth exceeds industry revenue growth. For more information, visit IBISWorld’s Online Travel Bookings report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry primarily engage in online travel reservations and bookings, taking a cut from the total transaction value booked through their websites. The industry excludes firms that also have a physical retail presence.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.