China’s online travel market tipped to grow to US$9.6 billion by 2009

China’s online travel services market reached RMB 254 million or US$31.6 million in the fourth quarter of 2005, with airline ticket booking service accounting for 77 million (US$9.6 million), hotel reservation service for 165 million (US$20.4 million), and travel arrangement service for 12 million (US$1.49 million). 

According to Analysys International’s research report China Online Travel Services Market Quarterly Tracker Q4 2005, hotel reservation is the major business of online travel, accounting for 64.96 percent market share.

Currently online travel service providers can get an average commission of 47.82 yuan per ticket from airline reservation service, lower than room reservation service commission which is 59.78 yuan per room per night.

Analysys International estimates China’s total transaction amount of online travel will reach RMB 7 billion in 2005, up 40 percent compared with the year 2004.

“As China’s e-commerce environment gets mature, plus the travel industry is a pillar industry in China, online travel will further develop. Analysys International says China’s online travel market will develop at an annual growth rate of 82.2 percent from 2005 to 2009 and the market size will reach RMB 77.2 billion (US$9.6 billion) by 2009,” stated the company.