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Online travel sales stay stable in France
Despite a dismal global travel market, the online sector in France is still stable. A new report by PhoCusWright says that online leisure and unmanaged business travel activity will gain three percentage points this year, edging up to 33 percent of the total French travel market. Online bookings are projected to stay flat, but the overall travel market is forecasted to shrink by 8.7 percent, which is why online's share of the pie will go up.
Carroll Rheem, director of research at PhoCusWright, says, "French consumers have adjusted their travel habits in line with the nation's relatively modest recession in 2009 and French suppliers have suffered less than those in other large leisure market destinations like Spain and Italy."
In France, traditional airlines have led the total market decline, expected to fall 14 percent this year. Hotels, on the other hand, are only likely to decline 6 percent. The online travel agency market continues to be fragmented. Growth will slow down considerably this year, but the online travel agencies will still gain some play from passengers looking for bargains.
Rheem continues, "In uncertain economic times, consumers need to feel confident that they are getting the best value for their money." Additionally, Rheem says, "Online travel agencies are certainly benefiting from this trend, but competition between them is also extremely fierce. The line between 'traditional' and online travel agencies is murky, and French OTAs must compete in a multichannel landscape."
