Despite the global recession, the online travel marketplace in China is growing rapidly, and travel industry research authority, PhoCusWright Inc., predicts online travel revenue will increase by 19% in 2009. In its first-ever Emerging Online Travel Marketplace in China report, PhoCusWright reveals that 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…
Despite the global recession, the online travel marketplace in China is growing rapidly, and travel industry research authority, PhoCusWright Inc., predicts online travel revenue will increase by 19% in 2009. In its first-ever Emerging Online Travel Marketplace in China report, PhoCusWright reveals that 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.
PhoCusWright’s Emerging Online Travel Marketplace in China explores China’s dynamic (and frequently misunderstood) travel market. Based on an in-depth, six-month research study, the report sizes the Chinese travel market by major segment and identifies key trends and developments. It also reveals some of the unique behavior patterns of Chinese travelers, and unveils what makes China’s travel market unlike those in the West and other markets in Asia.
According to Ram Badrinathan, general manager, Asia Pacific, “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.”
China’s travel market is not only different from any other country’s, but within the country its characteristics vary tremendously by region and population group. Understanding these differences can provide a strategic advantage to travel companies targeting or engaged with the Chinese market. “We were surprised at the extent to which the travel purchase patterns, choice of destinations, attitudes to online bookings, propensity to travel, choice of channels, use of technology and payment issues varied across the different Chinese cities we studied. What also came through was the impact of local, supply-side dynamics on travel behavior. In one major city, the lack of yield management by the leading airline has resulted in skewed travel purchasing behavior, in which the bulk of travelers plan well in advance, but book only on the day of departure,” adds Ram Badrinathan.
Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
