Taking it as a given that no marketer can capture 100% of a potential audience, it seems to me looking at the demographics that online travel companies have been able to sell their products to the best segment of the market, people with higher income, higher propensity to travel, more trips per year. You name it, they have it. The question for a marketer here is: "do I spend my effort selling more to this group, or do I go after those who have so far resistet?" Applying the theory of going after the low hanging fruit, which has been the hallmark of the online travel industry since its inception, my guess is they’ll continue to achieve higher penetration among the existing market, with only a secondary effort to convert the sceptics to purchase online. An interesting study would be to ask those people specifically what would make them purchase travel online, and what kind of travel services. One thing is clear, the market potential for growth remains significant and by applying innovative tools can be mined for years to come.
Travelocity, Yahoo! renew partnership – but not for FareChase Outlook for online travel growth remains positive.