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 Online Travel Bookings Growth Continues, Infringing Upon the Role of Traditional Travel Agents
 
 PORT WASHINGTON, N.Y - July 27, 1999 -- Nearly one-third of Internet users who visit travel-related Web sites have made online reservations using those sites, according to a new study by NPD Online Research. NPD reported that more visitors to airline, hotel and car rental Web sites are booking online than ever before. In 1999, 31% of individuals who visited airline sites booked their reservations on the Web, compared to only 21% in 1998. Twenty-eight percent of visitors to hotel sites booked online in 1999, opposed to 21% the previous year. And 28% of visitors to car rental sites booked online reservations in 1999, compared to 19% in 1998.

In another finding that bodes well for the online travel industry, among those Internet users who booked travel online, satisfaction with the buying experience was reported as very high. In fact, NPD found that Internet travel bookers were more satisfied with their online experience than those Internet users who use the Web to only check travel prices and travel availability. A staggering 89% of those who actually reserved airline reservations online reported
either being �extremely� or �somewhat� satisfied with their transaction. Satisfaction with hotel and car rental site buys was slightly lower at 84% and 82%.

�Our data supports expectations for continued growth in travel bookings online,� confirmed Allan Baldinger, a vice president for NPD Online Research. �We have found that the more time a consumer spends online, the more likely they are to purchase online. In fact, credit
card concerns that prevent most online purchases from being made drop dramatically among experienced Internet users. For those Internet travelers who browse Web sites, it is just a matter of time before they change from lookers to bookers.�

Among Internet users who buy travel online, a core group of heavy bookers is beginning to emerge. According to NPD, 7% of Internet travel buyers can be considered heavy bookers, those who have made at least one online airline, hotel and car rental reservation. Heavy
bookers tend to travel more frequently for business and pleasure, and are more likely to be �Net Vets� with over two years of online experience. SABRE-owned travelocity.com and Microsoft expedia.com were reported as the most frequently visited online travel sites for heavy bookers, followed by the sites priceline.com and previewtravel.com.

Despite the fact that more individuals are booking travel online, NPD found that a majority of Internet travelers continue to divert the confirmation of their travel reservations to traditional agents and providers. Fifty-six percent of online travelers reported having completed travel reservations with a traditional travel agent after visiting a travel-related Web site. Pricing and credit card security concerns continue to stop newer Internet users from booking travel
online, while the need for human contact and assurances that reservations are correct prevent more experienced Internet users from booking on the Web.
 

Primary Reasons Why Internet Users Book Travel Reservations Off Line, According to NPD Online Research
  Total
Respondents
Newbies Intermediate Net-Vets
Lowest Price 31% 28% 28% 33%
Credit Card Security Concerns 18% 33% 25% 13%
Human Contact 16% 8% 16% 16%
Accurate Reservations 14% 9% 13% 14%
Other 21% 22% 18% 24%
Newbies = Less than six months online
Intermediate = Six months to 2 years online
Net Vets = Over 2 years online

About the Study

This study is the latest in an ongoing series conducted by NPD Online Research for the travel industry. Five thousand, three hundred individuals from NPD�s Online Panel, a Web-representative sample of individuals prerecruited to participate in surveys, responded to the questionnaire in the spring of 1999.

About The NPD Group

The NPD Group is an international marketing information company headquartered in Port Washington, NY. Founded in 1953, the firm specializes in tracking consumer purchasing and behavior. NPD offers both custom research capabilities and syndicated databases for more
than 20 industries including apparel, automotive products, consumer electronics, cosmetics and fragrances, financial services, food, foodservice, footwear, housewares, information technology, interactive entertainment, pharmaceuticals, toys, and more. A leader in conducting research on and about the Internet, NPD is also the developer of the
revolutionary Web audience measurement technology now marketed by Media Metrix, Inc. NPD has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia.

###
 
Contact:
NPD GROUP, INC., Port Washington
Helen D'Antoni, 
516/625/2496
e-mail: helen_d'[email protected]
 
Also See: Internet Hotel Bookings Will Soar to $3.1 Billion by 2002 / Bear Stearns / Jan 1999 
A Study of the Hotel Industry's Application of the Internet as a Relationship Marketing Tool / July 1998 

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