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Just An Online Minute... Online Travel Spending To Soar 20%

Spending on online leisure travel will climb to $77.7 billion this year, marking a 20 percent increase from 2005, according to new estimates by eMarketer.

This estimated double-digit gain, though impressive, marks a moderation of growth from the last two years. In 2004, online travel spending surged 28 percent, while last year, the increase came to 24 percent, according to eMarketer.

EMarketer also forecasts that online travel will continue to grow, reaching $122.4 billion in 2009.

But, while consumers increasingly turn to the Web to book flights and rooms, many won't do so from online travel agencies like Orbitz and Expedia, according to eMarketer. "The majority of online travel sales will take place on supplier Web sites at the expense of online travel agencies. Going forward, this gap will only widen," states the report.

Given the fact that growth will moderate, online travel distributors might need to experiment with new programs to remain competitive.

One possibility, says eMarketer, is that online travel agencies can offer visitors deals on other non-travel products. Citing data from comScore, eMarketer reported that consumers who buy travel online are more likely than other Web users to purchase event tickets and cards, greetings or gifts. "An online travel distributor might use these findings to attract advertisers or to form partnerships with e-tailers," suggests eMarketer.

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