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News Stories Tuesday, June 21, 2005   
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Airline sites succeed at converting visitors to buyers, new report says

The top airline web sites, ranked by visitors, are successful in converting visitors to buyers, says a new report on travel web sites by Nielsen/NetRatings. No. 1 ranked Southwest Airlines, with a unique monthly audience of 8.14 million, enjoys a conversion rate of 14%, Nielsen/NetRatings reports. No. 2 American Airlines, with 5.6 million unique visitors, has a conversion rate of 9%. No. 3 Delta, which a unique monthly audience of 4.9 million, experiences a conversion rate of 10%.

Online travel agencies attracted twice the number of visitors as airlines during April 2005, but experienced half the conversion rate. Expedia led with 16.3 million unique visitors and a conversion rate of 5%. Travelocity was second, at 11.7 million and 3%, and Orbitz ranked third with 11.6 million and 4%.

“As suppliers and agencies struggle to gain the competitive edge, supplier sites are beginning to leverage their large customer base by becoming a one-stop shop for air, hotel and car reservations. Additional travel options elevate suppliers onto the same playing field as online travel agencies as a source for an overall travel package,” says Heather Dougherty, senior Internet analyst.

Nielsen/NetRatings further reports that 54% of online travel shoppers start at an online agency and 37% at a travel provider. 9% begin with a so-called travel meta-search provider, such as Kayak and SideStep, which find fares and accommodations but do not facilitate reservations and payment.

The research come from Nielsen/NetRatings’ Quarterly Travel Benchmarking Survey.

”The wide selection of travel suppliers drives the majority of travel shoppers to begin their research with agencies and meta-search providers before directly visiting a supplier,” Dougherty says. “At that point, suppliers are in a strong position to capture a potential sale as consumers visit their sites to confirm pricing and frequent flyer benefits before making the final purchase. Additionally, the growth of travel meta-search players provide suppliers with sales opportunities through side-by-side price comparisons with agencies.”

Nielsen/NetRatings also reports that nearly 50% of all airline ticket sales and reservations were conducted exclusively online during the last six months

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