Abacus has described online travel booking segment as the star performer of the travel industry so far this year.

Published: 14 Aug 2009

Abacus has described online travel booking segment as the star performer of the travel industry so far this year.

The segment, according to Robert Bailey, president and CEO of Abacus International, has shown remarkable stability through the otherwise volatile market of the past 12 months.

“Figures indicate that while sales through traditional agencies have spiked and troughed several times, online bookings held steady throughout the second half of 2008. This rose strongly in the first half of 2009 with 13 percent growth in1Q09 and increased to post a 30 percent growth in 2Q09,” he said.

He added that travel agents are using the Internet to reach out to new clients. This has fuelled the growth of online travel booking, which has grown into one of the main revenue streams for many travel agencies in this region. Almost 1 in 5 of all bookings made each year through the Abacus system comes through online sources and the Abacus GDS system processes over 70 percent of all online travel bookings as of Q109.

Brett Henry, VP - marketing, Abacus, said the online segment will continue to grow in the second half of this year.

“We expect Korea to be the fastest growing market in Asia. In terms of volume growth, Abacus online segment volume is expected to increase by 10 percent in 2009, further cementing our leadership position in this segment.”

He added, “A very real opportunity exists for travel suppliers to position themselves now to tap into upcoming online markets. These include Malaysia, which is regarded as the next emerging market where online travel booking is tipped to boom in the coming years. Further along the timeline, China, Indonesia, Vietnam and Thailand could also develop into the next group of online markets.”

Market highlights

Despite the fear of a decrease in travel, Abacus’ air booking data showed that there are some green shoots in terms of a selection of positive market performances. Vietnam, Thailand, Myanmar, Sri Lanka, Philippines, China, Pakistan, Nepal and Kazakhstan all registered growth for January to June 2009 compared to the same period last year.

“This is a positive indication that people are still travelling and that there are opportunities out there for businesses,” said Bailey. “Businesses must water the ground and tend these green shoots carefully by making the effort to understand local conditions so they can effectively influence the consumers’ decision making process.”