Luxury Hoteliers Magazine 2nd Quarter 2017 | Page 47

2016 was a good but challenging year for travel . Consumers ’ interest continued to grow , with a 4 % increase in international arrivals and a similar pace recorded for international receipts . It was the seventh consecutive year with growth in the number of trips , reaching more than 1.2 billion . The progress was driven by the 8 % increase in arrivals in Asia , while Europe , for example , recorded only 2 % growth . Western Europe stagnated while Eastern Europe supported the progress . It is important to say that despite this , Europe remained the leading global destination with 49 % of all arrivals . Domestic tourism saw great dynamism as well , being very close to reaching the 10 billion trips mark . China alone counted for one third of them , confirming once again its relevance in the industry . Overall , travel sales cumulated USD2 trillion in 2016 .
Online and Mobile Drive Travel Sales Growth
While offline bookings still lead , online and mobile bookings have seen strong growth . Online bookings accounted for 44 % of total travel sales in 2016 and if 2010-2016 is considered , online sales almost doubled , posting an 81 % value increase . The best to adapt to the digital trend were travel modes and intermediaries . Lodging came third , while the nature of ‘ activities ’, made this category much less penetrated by online sales . In 2016 , 41 % of hotel reservations were made online , and online airline bookings reached 68 %. Intermediaries , and not direct companies ’ sales , generated more online revenue for hotels , while for airlines it was the opposite . Holding leading positions and driving innovation , many might assume that Expedia and Priceline , two online giants , dominate global sales . However , they each count for less than 10 % value share in intermediaries .
With growing penetration of smartphones , tablets and mobile internet connections , 2010 was the year when the mobile revolution showed its first effects in travel sales as well . By 2016 , mobile travel sales already accounted for 26 % of total online value sales . This meant that one out of four dollars spent online went through a mobile device .