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The eyes of many in the travel industry are fixed firmly on China. With increasing wealth, the largest population and the most broadband users in the world, China's travel industry is clearly packed with potential. Yet even though China is the second largest travel market in the Asia Pacific region, very little China-specific travel research and market analysis currently exists.
PhoCusWright's Emerging Online Travel Marketplace in China is a detailed examination of the Chinese travel industry, with an emphasis on trends and opportunities in the online space. This report provides complete market sizing and analysis of the online travel market, and assesses the behavioral patterns of the Chinese leisure traveler. It clears the mysteries of this complex and regionally diverse market, paving the way for innovative companies to take advantage of the vast Chinese travel opportunity.
PhoCusWright's Emerging Online Travel Marketplace in China includes:
- Size and characteristics of the China travel market opportunity by segment (air, car, hotel, rail)
- China's cultural and physical infrastructure, and their impact on the travel search, shop and buy experience
- Behavioral patterns of Chinese leisure domestic and outbound travelers, segmented by five major cities in China
- Key players, trends and innovations shaping the dynamic China online travel market
- Implications and strategies for global travel companies entering China
Table of Contents
Section One: Overview, Methodology and Key Findings
Section Two: Strategic Implications
Section Three: Size of the Market
Section Four: Consumer Trends
Section Five: Demographics
LIST OF TABLES
China Online and Total Leisure/Unmanaged Business Travel Gross Bookings and Total Online Penetration by Segment, 2008-2011(US$M)
Lead Time for Travel Purchases
China Traditional Airline Market, 2008-2011 (US$M)
China Airline Market by Carrier (US$M)
China Lodging Market, 2008-2011 (US$M)
Home Inn - Number of Properties and Rooms, 2006-2008
Likelihood of Staying in a Budget Hotel
China Rail Passengers, 2001-2008 (US$M)
Online Channels for Purchasing Travel
Market Share of Online Travel Agencies, Gross Bookings, 2008
Ctrip Hotel Network - Property Distribution by City
Number of Holiday Trips Taken in Last 12 Months
Holiday Trips by City
Holiday Trips by Population Group
Holiday Trips by Primary Purpose
Holiday Trips by Mode of Transport
Holiday Trips by Duration
Holiday Trips by Travel Companion
Holiday Trips by Travel Companion (% of Trips)
Holiday Travel During Government-Declared Holidays
Holiday Trips by Destination
Research Methods for Holiday Travel Planning
Offline Methods Used for Holiday Travel Planning
Online Methods Used for Holiday Travel Planning
Number of Web Sites Used for Holiday Travel Planning
Web Sites Visited for Travel Reviews and Experiences
Influence of Travel Reviews on Travel Purchasing
Importance of Criteria for Hotel/Guesthouse Selection
Travel Company Loyalty Memberships Held
Online vs. Offline Purchase of Travel Components
Online Travel Purchasing by City and Population Group
Top Concerns About Purchasing Travel Online
Offline Channels for Purchasing Travel
Online Payment Methods for Settling Online Travel Purchases
Offline Payment Methods for Settling Online Travel Purchases
Offline Payment Methods for Settling Offline Travel Purchases
Likelihood of Purchasing Travel Component on Non-Travel Web Site
Holiday Travel to Macau by City
Duration of Holiday Travel to Macau by City
Holiday Travel to Hong Kong by City
Duration of Holiday Travel to Hong Kong
Holiday Travel Duration (Overall and by City)
Frequency of Business Trips
Method or Party Purchasing Business Travel
Demographics of Respondents
Sampling Criteria - Age of Respondents
Sampling Criteria - Gender of Respondents
Sampling Criteria - Job Status of Respondents
Sampling Criteria - Education of Respondents
Conducted in 4Q08 and finalized in March 2009, PhoCusWright conducted one of the most comprehensive studies to date on the emerging online travel marketplace in China, with an emphasis on leisure travel. Exhaustive and rigorous on both the supply and demand sides, the study included more than 90 in-depth executive interviews. It also incorporated specialized consumer research, including surveys of more than 2,000 respondents, in-depth consumer interviews, and focus groups in five major cities across China.
The interviews targeted senior executives of travel companies of all types, including airlines, hotels, rail, car rental companies, online travel agencies (OTAs), traditional travel agencies, metasearch companies, global distribution systems (GDSs) suppliers, online distribution solution providers and social media companies.
PhoCusWright collected both qualitative and quantitative data for the consumer research. To qualify as a "Chinese traveler," respondents had to have taken at least one holiday trip (defined as a stay of one or more nights, including visiting friends or a vacation to a tourist destination, resort, hotel, etc.) in the past 12 months.
The term "online Chinese travelers" refers to respondents in urban areas who took at least one holiday trip involving an online booking in the last 12 months. Based on data from the National Bureau of Statistics of China and China Internet Network Information Center (CNNIC), PhoCusWright projects the number of online Chinese travelers (as defined above) to be 48 million people in 2008, or about 33% of the adult population in urban areas with Internet access (10% of the total adult urban population). Conversely, the term "offline Chinese travelers" refers to those respondents who had not booked travel online in the last 12 months.
In order to approximate the best representation of the overall population in China, qualified respondents were sampled from four population groups: empty nesters (married, kids no longer living at home, with income); family (married, one or more kids, with income); DINK ("double income, no kids," married); and younger (not married, no kids, with income). These respondents were drawn from five representative cities across China: Beijing, Shanghai, Guangzhou, Chengdu and Xi'an.
PhoCusWright received 2,057 qualified responses, and the respondent pool can be projected with confidence to the Chinese adult traveler population in urban areas. The error interval for analysis of the respondent population is +/-2.5% at a 95% confidence level. Significant differences noted in this report were identified at a 95% confidence level.