Internet bookings spur competition

CHINA'S online travel service market is expected to expand by up to 40 percent between now and 2010, an industry report has revealed.

The growth spurt will come as the nation's Internet travel infrastructure matures and the increasingly popular electronic plane tickets spurs demand, the report said.

The by-product will be intensified competition for the offline travel as ticket agencies explore online sales channels, said Analysys International, a Beijing-based IT industry researcher.

The market, comprising plane tickets, hotel bookings and package tour organization, will generate sales of 3.54 billion yuan (US$472 million) this year, an increase of 38 percent from 2007, as rising income will fuel Chinese travelers' spending.

The figure will be more than double to 7.57 billion yuan in 2011, the researcher estimated.

"The online travel industry chain is getting mature with better Web maps and payment tools, while the service providers are forced to develop new products to keep in pace with consumers' needs," Analysys said in the report. The promotion of e-ticket, adopted by airlines to cut expenses, facilitated the deals online.

Competition, especially in ticket booking, is getting fierce. Elong.com, 52 percent owned by US-based Expedia Inc, now offers a 24-hour, seven-day-a-week ticket booking service for both domestic and international flights in an effort to compete with No.1 player, Ctrip.com.