Internet Travel and the Recession

There are many people out there, quite a few of them economics experts that claim that travel will always continue to be moderately effected by the global recession we are (hopefully) passing through. There are others that will tell you the exact opposite. As with most things to do with this recession,research soon shows you a conflicting set of opinions.

It is true to say that this year, for the first time since 1998, the online travel industry will record a drop in profits. This according to figures by PhoCusWright,the travel industry company. However,when you take into a drop estimated to be only three percent the online travel industry will be in the 93 billion range. With that you start to get a bit of a picture of how seemly healthy the online travel industry is even in these troubled financial times.

So,why is it that the online travel industry seems to live up to being,at least for the most part, recession proof where so many other products and services have failed? This is another thing experts can't agree on but it seems fair to say there is more than one thing contributing to the continued success of online travel.

One factor that definitely needs to be counted on is the issue of business travel. Regardless of how volatile the economy may be it will always keep ticking ,no matter how hard some of the doom and gloom merchants try to convince us otherwise. The fact is that a lot of businesses are global enterprises these days and face to face planning and strategy meetings will always need to keep taking place,as a result business folks continue to fly all over the world. In many cases use of network online travel allows them to obtain the most cost effective means.

It also seems to be a fact that travel has become part of the average person's life.So much so that they seem to feel an entitlement to it and even when things get difficult they are still determined to have their vacations. They may decide to stay closer to home but in the most part they will still want to fly somewhere,stay somewhere, drive somewhere, just to get away. The convenience of internet travel services help make it happen.

If anything the biggest effect that the recession has had on the travel industry is to drive a lot of it online. The ability to compare prices at different locations on different dates at your own convenience is perfect. A quick examination of the travel business lets you see how well suited it is to be an internet based enterprise. The recession might have given the conventional travel agencies a bit of a shove but it appears inevitable that travel needs are at your finger tips.

Of course, all the success of online travel during this quite severe global recession does lead us to wonder how huge it could really become when things start to pick up in the general world economy. It does look like the industry could be set for an unprecedented explosion. All in all it seems to be a very interesting and lucrative time for the online travel industry.


Jerry_Newman

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