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China's travel industry is now worth around RMB 900 billion annually. A mere RMB 850 million or just 0.1% of this total is generated online. Compared to online shares of 32% in the United States and 12% in Europe, this sector's growth in China has vast potential. I just wonder what it will take to kick start the move towards internet purchased travel/hospitality.....
To highlight the potential of this sector, you just need to turn to the Ctrip 2009 financials. For the full calendar year of 2009 they stated that net revenues were CNY2.0 billion in 2009, up 34% from 2008. That's certainly good growth in a year where most companies were facing the "Great Global Downturn". So this just goes to prove that traditional travel agency based business is alive and well in China... but what about online side of this industry?
Western Markets provide a view of the evolution we may see in the travel sector. Online Travel Agency's (OTAs) have been essential distribution partners, able to generate bookings amid a significant overall slump in demand in hotel and airline bookings..
I expect we will see revenue heading online through the efforts of Ctrip, eLong, Travelzen, Qunar to name a free working in this online travel sector. Also I am encouraged by the eCommerce capabilities of Hotel/Airline and Tour Operators... seems 2010 will certainly see a significant (relative) growth in online travel purchases..
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