The travel industry is by far the largest industry in the world. It accounts for about 7 trillion dollars a year world wide and about 1.3 trillion in the US alone. In the US that calculates to about 2.4 million dollars a minute or 40 thousand dollars a second. The travel industry is growing 23% faster than the world economy and will continue historical growth for the next 18 to 20 years. This of course is because of that group of people born between 1946 and 19 64 known as the almighty baby boomers. This group has changed every industry they have ever touched and they are entering retirement at the rate of 1 person every 8 seconds for the next 18+ years. When people retire, they want to travel. That is why the industry is expected to double in the next decade. The industry size and growth capacity is enormous. If we took telecom, health and nutrition and financial services, all of which generate billions of dollars in the direct marketing industry, and you combine them, it wouldn’t come even close to the size of the travel industry. It is always a smart move to be positioned in front of a growth industry and there has never been anything of this magnitude in the entire history of American business.
Barry Diller, the owner of Comcast bought Expedia.com for 5.1 billion dollars. Some holding company that I am not familiar with recently bought Orbitz.com for 5.6 billion dollars and Donald Trump has invested I don’t know how many millions building his online travel company from scratch. To me, that is a clue. They know its coming and they want to be in front of it. But the beauty of this opportunity is that those companies can’t compete with us. We are going after the prize of being the largest internet travel company in the world and create 10,000 millionaires inside of 10 years. I know that might sound grandiose, but stay with me because once you understand our business model, it will be very clear as to why it is not only realistic but very probable.
Right now, about 82% of the US population already books their travel online. The travel agency community has shrunk by 200,000 + travel agencies in the last 10 years because everyone is adopting the internet as their travel agent. It’s convenient. That is why Expedia, Travelocity, Orbitz, Priceline etc…have all be trying to brand themselves to grab a piece of the market as this transition occurs from brick and mortar travel agencies to click and order travel agencies. Not only do they want a piece of the existing market, more importantly they want to get in front of what is to come. Expedia.com for example is spending about 5 million dollars a week for marketing. About 80% of the revenue that comes in the door is being reinvested into their branding efforts. But, 20% of a whole lot is still a whole lot. It’s a great business model. But there is one problem; people are booking their travel with faceless corporations and there is no relationship in the equation anymore.