• by Jack Loechner , Staff Writer @mp_research, June 17, 2002

Limited Travel Promotes Online Growth

Attitudes toward travel are shifting as events have disrupted travel plans for consumers and businesses. Harry Wolhandler, VP ActivMedia Research, says, ``Life online and offline will never again be the same. Propelled by forces outside personal control, people will adopt measures for protection that will range from lifestyle changes to acceptance of a measure of intrusion on personal freedom and liberty that had been vigorously rejected by the free-spirited early web pioneers. The result is likely to be dramatic increase in use of the Web in lieu of personal visits for shopping, business-to-business purchases and interpersonal communications."

ActiveMedia findings go on to conclude that:

As big-city shopping trips are canceled, and small-town life becomes increasingly attractive to those who seek a more personal, less risk-intensive lifestyle, online shopping will increase.

Sales forces will use new voice and video technologies to avoid travel, yet retain the importance of friendship between companies and provide the benefits of live discussion and negotiation between business partners.

There must be a balance between personal freedom and anonymity and legitimate identification for business transactions. This will include biometric indicators and personal smart cards that are difficult to forge or duplicate.

In addition, recent research conducted by ActivMedia discovered that the integration of online and offline sales channels is strongest among businesses that are part of larger organizations. These are also most likely to survive the weak economic times that have been exacerbated by the blow to our economy and our confidence.

Larger companies' sophisticated computer and IT operations are in better position to take advantage of sophisticated new technologies.

Online Business Revenue Model By Web Budget Relationship to Parent Business
(% of respondents)

	Total	Autonomous	Part of Larger Organization
Generates sales both online and through traditional channels	40%	38%	49%
Sales from online marketing arrive through offline channels	25	9	23
Generates sales that come solely through the web site	19	44	11
Sales are sought but have not yet materialized	5	3	4
No sales sought or generated by co. web site in next 2 years	4	3	5
Our site is not intended to ever generate revenues	8	4	8

Source: ActivMedia Research LLC

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