As China's middle class expands, travel offers grow, keeping the country's travel, tourism and hospitality industry on a healthy track – despite declining gross domestic product (GDP). Growth in all of China's travel segments decelerated in 2015, prompting travel suppliers to take a closer look at distribution strategies and OTAs to push the boundaries of the definition of travel. Mobile is now intermediaries' primary platform and the mobile travel market is growing more than twice as fast as the online market.
Phocuswright's China Online Travel Overview Ninth Edition presents market sizing and projections for the total and online leisure and unmanaged business travel markets in China from 2014-2020. The report also outlines the key trends that will shape China's travel market in the years to come.
Report highlights include:
- Total market and online leisure/unmanaged business travel bookings for 2014-2020
- Bookings by major travel product segment – air, hotel, rail and car rental – including discussion of key players and segment dynamics
- Detailed online travel market analysis, including online and mobile penetration, share by segment, and unique characteristics
- Impact of the mobile channel on online travel shopping and purchasing
Phocuswright's China Online Travel Overview Ninth Edition provides the pertinent details and analysis on China's large and rapidly maturing travel marketplace, necessary for any company operating in China.
China Online Travel Overview Ninth Edition presents market sizing and projections for China's total and online leisure/unmanaged business travel markets for 2014-2020. Figures for 2014-2015 are based on actual company results. Market sizing for 2016-2020 is based on projections. Estimates and projections are for gross bookings – the retail value of travel sold after cancellations.
Airline and rail sizing includes passenger ticket revenues and excludes revenue from freight, ancillary sales and cancellation charges.
Hotel figures are based on room revenue, excluding food and beverage.
Car rental figures are based on rental revenues.
Market sizing is presented in both local currency – Chinese Renminbi (¥) – and in U.S. dollars (US$). Local currency is converted at the average rate for the period represented.
All figures have been adjusted from fiscal year to calendar year and may differ from actual data reported by companies. Totals in charts may not always equal 100% due to rounding.
Supplier revenue is attributed to the market where the company is based or headquartered. For example, 100% of Air China's passenger revenue is attributed to China.
Both leisure and unmanaged business travel services are included in online travel market sizing and forecast figures. Unless otherwise indicated, all online gross bookings and share figures refer to leisure/unmanaged business travel.
Unmanaged business travel refers to all air, car and hotel expenses associated with business travel in firms that do not have travel policies dictating channel, type of travel, supplier or fare/rate uses. Corporate online booking systems such as Sabre GetThere are excluded from this analysis.
This report does include corporate travel bookings in the total travel market figures and in the total revenue for each segment. However, it does not directly address the size and dynamics of the corporate travel market, except to the extent that they shape key trends in the size and development of the total and online travel markets. Some corporate bookings made through leisure channels, such as OTAs and supplier websites, may be included in online totals because of the difficulty in distinguishing these bookings from leisure sales.
Phocuswright defines online travel as travel services paid for online by credit/debit cards, Internet banking, electronic wallet or other means. Travel that is researched online but booked offline using telephone numbers on provider websites is, wherever possible, excluded from online gross bookings figures.
China Online Travel Overview Ninth Edition also includes mobile travel market sizing for 2014 and 2015 and projections for 2016-2020. Sales from both mobile (smartphones and tablets) web and applications are included in mobile gross bookings.
References to the "travel market" indicate the total travel market, and "traditional travel agencies" refers principally to offline travel agencies. "Online penetration" denotes the percentage of travel purchases made online, and "Internet penetration" denotes the percentage of people with Internet access.
Phocuswright built its estimates and forecasts from interviews with more than 100 travel executives across the Asia Pacific (APAC) region regarding their companies' Internet sales, marketing and technology investments, challenges, strategies and expectations. Their responses have been vetted and aggregated to determine market size for supplier websites and OTAs. Phocuswright also considers historical growth and economic trends when developing its forecasts and reviews public filings of listed companies, government statistics and data from select third-party sources.