iResearch: Online Travel Booking Market exceeded 600 Million RMB for Q3
China online travel booking market exceeded 600 million RMB in Q3 2007 According to iResearch recently released report China Online Travel Booking Research Report for Q3 2007, online travel booking market size reached 60.7 million, an increase of 47.0% YOY, or 11.2% sequentially. Compared with Q2 2007, the sequential growth rate was dropped down but still maintains a steady growth.
iResearch believes that the impact of golden week holidays was notable and the adjustment of Labor Day Golden Week next year will be bound to impact the development of online travel booking market.
Ctrip expands revenue share and Mangocity accelerates development
Ctrip continues expands its market share of revenue, reaching for 57.0%, while eLong's market share decreased to 13.8%. Some smaller operators, such as manggocity, gained rapid growth relying on abundant tourism resources.
According to iResearch, online travel booking is closer to traditional industry compared to other internet industries and has more demands of offline resources.
Adjustment of Golden week impacts online travel booking market
After studying the market size and operators development, iResearch thinks that air ticket, hotel reservations and holiday, especially long-term holiday, products booking increased significantly during Golden week. In 2008, shorten of Labor Day Golden Week will have great impact to operators relies heavily on long-term holiday products, especially abroad travel products. Their revenues will be decreased due to the adjustment. While to the whole industry, the adjustment will decrease the revenue proportion of holiday products. And the air ticket and hotel booking market will be more monopoly.
iResearch advises that Chinese online travel booking operators adjust their product subject, enrich short-term products to face the adjustment of Labor Day Golden Week. According to iResearch, though the adjustment of Golden Week will have certain impacts to the whole industry, operators still have a buffer period to optimize product structure and improve profit ability due to the coming of Olympic Games. Generally, China online travel booking industry will maintain a steady and rapid growth.
