German, European Online Travel Markets See Strong Growth, According to New PhoCusWright Report

The German online travel market has multiplied in the past two years, outpacing the rest of Europe, according to a new report published by PhoCusWright Inc. titled European Online Travel Marketplace Update 2002-2006: Focus on Germany. After more than doubling in 2003, online travel bookings in Germany grew by an estimated 62% in 2004, reaching a projected €3.3 billion.
 
All of Europe is projected to grow by 51% to reach €19.2 billion in 2004 following actual 65% growth in 2002-2003 (see Table 1). The German online market is expected to continue to grow in the range of 60% annually through 2006, at which time Germany is projected to represent one-fifth of the European market (see Table 2).
 

 
"Because of Germany's strong tour operating business and slow development of the online business, this large market is now ripe for consolidation," said Olivier Jager, PhoCusWright European travel analyst and author of the report. "Dynamic packaging and other flexible travel solutions have the strongest growth potential in Europe."
 
The growth in online bookings in Europe somewhat mirrors the growth in Broadband adoption. While Western Europe as a whole still trails North America, countries such as the Netherlands, Belgium, Denmark, Switzerland and Sweden recorded broadband penetration rates equal to or higher than the US at the end of 2004. Furthermore, recent broadband service offerings in France, Italy and the UK are as competitive and innovative as anything offered around the world.
 
"Europe is not following the US in broadband development," says Ben Macklin, eMarketer Senior Analyst and author of the new Europe Broadband report. "It is cutting its own path."

 
Broadband households in Western Europe increased by nearly 65% last year, a rate twice as fast as the US. The highest growth was in France, until recently an Internet laggard.