DIRECT SUPPLIERS SET TO BOOST SHARE OF UK TRAVEL MARKET

Direct suppliers and high street brands will increase their share of the UK travel insurance market at the expense of travel agents and tour operators, according to a report by UK-based travel insurer Club Direct. The study reports that direct sellers increased their market share to 14% in 1999, from 5% in 1994, whereas travel companies saw their market share fall to 70% from 84% over the same period. Club Direct expects sales of travel insurance via digital TV and the Internet to grow, but predicts that interactive TV will have a greater impact on direct insurance sales than the Net, since it is likely to be installed in 7m UK households over the next four years. Increased competition is anticipated to lead to consolidation in the market and Club Direct predicts that this will keep premium prices down. For details contact Brent Escott: Tel +44 (0) 1243 836801