NATIONAL REPORT— More cost-conscious travelers are booking online these days, evidence of a trend that is likely to gain momentum, according to Jupiter Research. Jupiter Research predicts online hotel bookings will surge from $5 billion in 2001 to $14.8 billion in 2007. The research firm cited Travel Industry Association of America (TIA) figures that show 57% of online travel bookers purchased accommodations on the Internet in 2002. Some 77% of these travelers booked airline tickets on line and 37% booked rental cars. But despite the trend to book online, Jupiter Research analysts say there is still a need for travel agents. The analysts believe that consumers are often confused by the rate differentials and choices that are available online, with many preferring to rely on the expertise of a travel agent or call the hotels directly. In fact, Jupiter Research found that in 2001 for each $1 that the travel industry realized directly online, travel companies selling hotel products online garnered an additional $5 of booking revenue in traditional channels as a direct result of research that consumers did on the web. A 2002 Jupiter Research study of 1,845 online travel buyers and browsers indicated that nearly half (48%) of those surveyed conducted research and purchased from an agency site, while 34% conducted research and purchased from a supplier site.
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