[photopress:IT_travel_booking_on_line_ELong_travel.jpg,full,alignright]According to a report by Shanghai-based Research Consulting Group last year, at least 2.75 million Chinese booked hotel rooms, air tickets and other travel services on the Internet, up 72% from the previous year.
That is an amazing growth rate even starting from a low base and means that China’s online travel services are taking off. Even greater growth is forecast for the next few years.
Last year, at least 2.75 million Chinese booked hotel rooms, air tickets and other travel services on the Internet.
China’s online travel market was worth some RMB1.54 billion ($204 million) last year, a growth of 82% from 2005. So to clear up any possible confusion: number of users up 72%; money spent up 82%.
The findings are based on a month-long survey last November with responses from 60,000 Internet users across China.
Analysts with the consulting company are optimistic about China’s online travel market, saying the number of users would more than double to 5.7 million in 2008, and perhaps reach 9 million by 2010.
The online sector is expected to be worth RMB6.5 billion yuan by 2010. This is not overly-optimistic. Compare with the U.S. online travel market, with revenues of $83 billion in 2006. In the US, online sales of travel services accounted for 30% of total tourism industry revenue in 2005. The percentage in China is less than 1%.
Dai Bin, professor at Beijing International Studies University, said, ‘Looking at it from the good side, this means there is still huge potential for developing this market.’
But he warned that the current boom is mostly due to a few companies.
Source: Window of China