Travel companies are set to invest in targeted internet advertising as they look to encourage holidaymakers into booking holidays online, an industry expert claims.

Speaking at a TravelTechnology seminar, Worldspan vice president Graham Nichols claimed firms will focus on targeting specific customers by advertising services and products they are likely to be interested in, reports TravelMole.

He said: "The trend is towards personalisation and it's about targeting people at the right time with information that is relevant to them."

TravelMole added that companies are already taking advantage of technology which allows them to track consumers looking to book a break online.

Meanwhile, travel firms are also able to target users with specific advertisements into what they are researching online, but not necessarily for what consumers have actually booked.

An increasing number of British companies turned to online marketing during 2006, a new study reports.

According to Thomson Intermedia, an increasing number of British firms turned to internet advertising last year, spending some £235 million in the sector, reports Reuters.