From Leapfrog to Leader: Mobile Dominates China's Fast-Growing Travel Marketplace

M-commerce is taking over the China travel market faster than anywhere else in the world. Half of the country's online travel purchases will move via apps and mobile web in 2016, the highest rate of mobile penetration around. New Phocuswright travel research, China Online Travel Overview Ninth Edition, presents market sizing and projections from 2014 – 2020, and outlines key trends that shape China's travel market. 

China's online travel agencies (OTAs) have been aggressive and adept at acquiring mobile travel bookers, and that competitive environment changed significantly when Ctrip swallowed up its two biggest competitors in 2015. With Ctrip in control of eLong and Qunar, deep-pocketed competitors like Alitrip and Meituan Dianping have their work cut out for them trying to catch up. At the same time, suppliers are also making online and mobile direct channels a higher priority. 

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These travel providers are competing for consumers' attention in a travel market where growth has slowed along with the overall economy. But travel sales are still climbing at high single-digit rates, outpacing GDP growth by about 2.5% in 2015 and 2016. 

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"The slowing growth of the economy has caused some cooling off in travel, but the expanding middle class has a strong desire to see the world," says Phocuswright senior research analyst Maggie Rauch. "Domestic and outbound travel are still expanding at impressive rates. Chinese consumers are embracing the mobile booking options that both OTAs and suppliers are promoting so enthusiastically." 

Purchase Phocuswright's newest travel research, China Online Travel Overview Ninth Edition, for details and analysis on the world's fastest-growing travel market, essential for any company operating in China.

Phocuswright's China Online Travel Overview Ninth Edition is included in the Global and Asia Pacific Edition Research Subscriptions. Learn more about gaining access to Phocuswright's research publication libraries HERE.