SOURCE: Phocuswright Inc.

October 01, 2007 10:49 ET

French Online Travel Market Projected to Near 10 Billion EUR in 2008

PhoCusWright Releases French Online Travel Overview Second Edition

SHERMAN, CT--(Marketwire - October 1, 2007) - According to a new report from PhoCusWright Inc., the French online travel market, though it trails that of Europe as a whole, is marching relentlessly in the footsteps of the online U.S. travel market. The report, PhoCusWright's French Online Travel Overview Second Edition, provides an in-depth look of the French travel market, including market size, forecasts and analysis, as well as the overall European market, for 2004-2006 and projects trends through 2008.

According to the report, online revenues as a percentage of the total French travel market reached 16% in 2006. By 2007, one out of every five euros spent on travel in France will be for online leisure/unmanaged business travel. Yet an online travel market projected to be nearly 10 billion EUR in 2008 still represents tens of billions of euros awaiting online conversion.

Additional highlights of the French online travel market include:

--  The French online travel market experienced a rapid adoption curve,
    and despite the relatively low level of Internet penetration, exhibits the
    hallmarks of a very mature online travel market.
    
--  Online penetration of the travel market has been a steadily evolving
    process, not an explosive burst, thanks in part to a unique element of the
    French travel market: the absence of homegrown low-cost carriers.
    
--  The relative inertia of offline intermediaries allowed the entrance of
    new online players.
    
--  Monolithic suppliers, a lack of locally-based low-cost carriers, and a
    relatively small outbound market have tempered the growth of the online
    segment.
    
--  The battlefield previously populated with online travel agencies is
    now mainly occupied by suppliers.
    

The individual markets of Europe, in particular the top five (U.K., Germany, France, Spain and Italy), demonstrate the variety of paths that developing e-commerce economies can take. Hence, PhoCusWright has undertaken a country-by-country research effort covering these five markets and the European market as a whole, resulting in six new reports, including PhoCusWright's French Online Travel Overview Second Edition.

Packed with numerous additional findings, the report is available at http://www.phocuswright.com/reports/france for US$600 (425 EUR*).

*EUR is approximate and based on exchange rate as of September 28, 2007.

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