Online Travel Industry Captures $1.2 Billion in January, Led by Travelocity, According to Nielsen//NetRatings and Harris Interactive

Additional $681 Million Spent Offline by Online Shoppers

Press Release
March 21, 2001
NEW YORK, NY -- Nielsen//NetRatings, the world's fastest growing Internet audience measurement service, and Harris Interactive (Nasdaq:HPOL), a global leader in Internet-based market research, today reported that the online travel industry hit $1.2 billion in sales in January, nearly a third of all eCommerce transactions, which were $3.8 billion.

This marks a dollar increase of 29 percent from six months ago when consumers spent $943 million on online travel in August 2000, setting the highest level since monthly surveys began last April.

From last January to January 2001, Nielsen//NetRatings found that online shopping trips to the top five travel sites from work and home jumped 42 percent to 22 million visits.

``Online travel spending grew 17 percent to more than $1.2 billion in January, while all other forms of consumer eCommerce declined from their hectic holiday levels in December,'' said Sean Kaldor, vice president of eCommerce at NetRatings.

Findings from the Nielsen//NetRatings and Harris Interactive eCommercePulse, collected from an online survey of 50,000 Web users, found that Travelocity held the largest share of online travel buyers or 18 percent (see Table 1). Southwest followed with 14 percent of all online travel purchasers. Expedia's share was 11 percent. Priceline (nine percent) and Delta (eight percent) rounded out the top five rankings.

Table 1. Top 5 Travel Providers Ranked by Share of Purchasers,
January 2001
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Company               Unique Audience (000)     Travel Purchaser Share
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1. Travelocity                       8,720                         18%
2. Southwest                         4,109                         14%
3. Expedia                           4,801                         11%
4. Priceline                         3,409                          9%
5. Delta                             3,019                          8%
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Source: Nielsen//NetRatings and Harris Interactive, January 2001


Offline Dollars Generated By Online Shoppers

Online travel sites stimulated another $681 million in offline revenue in January. These sales were generated by online operations, but purchased through the phone, fax or in-person.

``Online travel is one of the more efficient vertical industries online, routinely completing 64 percent of transactions on the Web while many other product categories see only 30 to 40 percent of revenues actually transacted through the cost-efficient online interface,'' said Kaldor.

``Online travel sites should not be evaluated purely by their Web dollar sales figure alone. Many people use the Internet to price comparison shop, and prefer purchasing their tickets by speaking directly with a travel agent,'' continued Kaldor.

About eCommercePulse

The eCommercePulse service integrates eCommerce survey data collected from Harris Interactive's online panel of more than seven million users with data and insights from Nielsen//NetRatings' Internet audience information. eCommercePulse is the first single-source eCommerce intelligence service for merchants, investors and suppliers.

Covering more than 300 eCommerce sites across 14 key vertical markets, eCommercePulse provides integrated monthly reports on eCommerce behavior, trends and spending (both online spending and offline spending that result from online shopping). Critical information on purchaser and revenue share, and customer satisfaction metrics, including market-level and site-level traffic, enables companies to make informed, strategic business decisions.

About Harris Interactive

Harris Interactive (Nasdaq:HPOL), the global leader in online market research, uses Internet-based and traditional methodologies to provide its clients with critical knowledge concerning the views, experiences, behaviors and attitudes of people worldwide. Known for its Harris Poll, Harris Interactive has 45 years of experience in providing its clients with market research and polling services including custom, multi-client and service bureau research, as well as customer relationship management services. Harris Interactive acquired the custom research group of Yankelovich Partners in February 2001. Through its U.S. and Global Network offices, Harris Interactive conducts research around the world, in multiple, localized languages, using its proprietary technology to survey its database of more than 7 million online panelists. For more information about Harris Interactive, please visit our website at www.harrisinteractive.com. EOE M/F/D/V

About NetRatings, Inc.

NetRatings, Inc. (Nasdaq:NTRT) is a leading provider of Internet audience measurement information and analysis. Its products and services enable customers to make informed business-critical decisions regarding their Internet strategies. NetRatings has strategic relationships with both Nielsen Media Research, the leading source of television audience measurement and related services in the US and Canada, and ACNielsen, a leading provider of market research information and analysis to the consumer products and services industries.

About Nielsen//NetRatings

Nielsen//NetRatings, the audience measurement service from Nielsen Media Research and NetRatings, Inc., collects real-time data from more than 70,000 panel members in the United States. The U.S. panel sample consists of 62,000 at-home users and 8,000 at-work users. These panels collectively represent the largest representative media research sample of Internet users in the industry. Worldwide, Nielsen//NetRatings services are provided via a partnership with ACNielsen eRatings.com, a venture between ACNielsen and NetRatings, Inc., and measure the Internet experiences of more than 220,000 Internet users.

Editor's Note: Please source data to Nielsen//NetRatings and Harris Interactive.

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