U.S. Travel Market Tops $300 Billion as Fiscal Cliff Looms

he U.S. travel market remains strong despite a murky economic outlook for 2013. Aided by rising prices and corporate travel demand, the industry will grow 8% in 2012 to reach a record $303 billion, according to travel industry research authority PhoCusWright, in the new report PhoCusWright's U.S. Online Travel Overview Twelfth Edition. 

"With uncertainty surrounding the fiscal cliff, European debt crisis and a slowing China economy, the travel industry outlook for the coming year is guarded," said Lorraine Sileo, vice president, research. "But after recovering from the recessionary losses of 2009 in less than two years, the U.S. travel market continues to show remarkable resilience."

Led by air and hotel, the online leisure/unmanaged business travel market is growing faster than the industry as a whole, jumping 11% in 2012. However, online growth is expected to slow to 7% annually for 2013 and 2014. Supplier websites are growing faster than online travel agencies in every segment, with total online supplier bookings jumping 14% in 2012, versus 6% growth for OTAs. By 2014, two thirds of online bookings will be made via supplier websites.