Despite the global recession, the online travel marketplace in China is growing rapidly, and the travel industry research authority sadly named PhoCusWright Inc. predicts online travel revenue will increase by 19% in 2009.
China’s online travel space currently totals approximately US$6.9 billion, accounting for about 11% of the country’s entire travel market. Due to a variety of factors, the online channel is expected to continue on a strong growth trajectory, and by 2011 will account for about 20% of the total market.
Hotel Interactive reported that according to Ram Badrinathan, general manager, Asia Pacific of PhoCusWright, "China is rapidly emerging as the largest travel opportunity in APAC, but that doesn’t make the entire market accessible to entrepreneurs. The key parts of the Chinese travel value chain are in varying stages of deregulation and government control.
"It is vital to understand the triggers that will allow for innovation and opportunity. What is really exciting is the vast potential represented by Chinese online consumers, as the country emerges as the largest broadband user market in the world. This will create a unique dynamic in the travel buying process."