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Analysis Shows Surge In Online Travel

December 17, 2004
Nielsen//NetRatings, which measures and analyzes Internet audience, says its figures show that 23 percent of Americans, or 68 million unique visitors, flocked to online travel destinations during November 2004, making up 46 percent of all active Web surfers.

In comparison, there were 60 million Web users who visited online travel sites in November 2003, growing 13 percent year-over-year. The company says the volume of traffic and annual growth underscore the Internet's role in helping consumers make travel preparations for the holiday season.

Online consumers spent $919 million on travel during November 2004, jumping 11 percent from the $828 million spent in November 2003, according to the Holiday eSpending Report by Goldman Sachs, Harris Interactive and Nielsen//NetRatings.

In November, MapQuest ranked number one in online travel destinations with 31 million unique visitors, while Expedia followed with 14 million visitors. Travelocity drew 11 million online surfers, while Orbitz.com and Southwest Airlines rounded out the top five online travel destinations with 11 million and seven million unique visitors, respectively.

"While retailers are in the spotlight during the holiday months, the revenue and traffic generated from online travel destinations should not be overlooked," said Heather Dougherty, senior retail analyst, Nielsen//NetRatings. "During this November, much of the online travel spending stemmed from lower to upper middle class households."

Those with household incomes of $50,000-$74,999 comprised 28 percent, or the largest group of online travel visitors, during November 2004, while those with household incomes of $25,000-$49,999 made up 20 percent of online travel visitors. Following closely in third place, online surfers with household incomes of $75,000-$99,999 comprised 19 percent of those visiting online travel destinations.

"Our research shows that those living in household incomes of $75,000 or more tend to favor brand-specific travel Websites over any other category of travel sites, while those earning $75,000 or less tend to visit multi-category travel sites such as Expedia and Travelocity where one can comparison shop," said Dougherty. "Clearly, those with higher household incomes extend their loyalty online to their frequent travel programs."

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