CAMBRIDGE, MA— Despite the sluggish economy, an increasing number of travelers are flocking to the Internet to snap up bargains, fueling the competitive battles between travel suppliers and Web agencies to gain consumers attention and dollars, according to a recent survey by Forrester Research. This year, nearly 26 million U.S. households— 43% of Web travel household— will book leisure travel online, 12%more than in 2001, notes the survey. In 2002, when Web travelers will spend just under 30%of their leisure travel budgets online, leisure travel will drive $22.6 billion in revenue. By 2007, 32% more households will spend 39%of their travel budgets online, generating $49.7 billion, Forrester reported. “Without the Internet, the travel industrys financial performance would be even worse than were now seeing,” said Henry Harteveldt, senior analyst at Forrester. “More than six in 10 U.S. households research their leisure travel online today because they know thats where theyll find the best deals.” From its online survey of nearly 9,000 households in the U.S. and Canada, Forrester determined how online leisure travel will grow over the next five years, as well as found out which sites win over consumers and how people divide their dollars between the Web and offline purchasing channels. “As much as online travel bookers love the Web, they are not loyal to the companies from which they buy,” added Harteveldt. “Travel companies are faced with the challenge of making the Web as functional as offline options and ensuring that the best values are always online.”
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