According to Expedia, in the U.S. 40% of travel is booked online, in Europe around 30%, and in Asia-Pacific 20% and well below, depending on the count

According to Expedia, in the U.S. 40% of travel is booked online, in Europe around 30%, and in Asia-Pacific 20% and well below, depending on the country. But according to PhoCusWright this is going to change very soon, with Asia Pacific becoming a US$51.6 billion online travel market this year, with a growth rate of 30-40% in the years to come.

Overall, sites like Expedia expects between 10 to 20 per cent of their booking revenues to come from Asia Pacific over the next two years, up from five per cent now. Expedia currently takes in US$24.3 billion in annual gross bookings.

Other players like Chan Brothers said bookings via its online flight and hotel portals have been encouraging with an average growth of 50 per cent on-month. While at the same time, the number of visitors to their site have doubled since its revamp in the second half of last year.

Furthermore, experts said as broadband and credit card penetration increases in Asia, consumers will be more willing to spend online.

And complementing that is the recent phenomenon of group buying sites like Groupon and Deal.com.sg.

These sites allow consumers to buy deals at a huge discount, and sometimes it include airfares and hotel stays.

“We see those business models as not necessary be directly competitive with online travel, what they tend to do is they tend to introduce to a set of customers one hotel on one destination on one particular day. And that’s great to get people excited about travel, but it doesn’t meet the need of a place where you can go for all your travel needs on a regular basis,” said Daniel Lynn, Vice President and Managing Director of Expedia Asia Pacific.

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