According to report released by CTCNN, overall transaction of China vacation travel market reached 317.43 billion Yuan (USD 51.7 billion) in 2013. Vacation travel transaction through online channel was 29.3 billion Yuan(USD 4.8 billion), accounting for 9.2%. For online vacation travel market, Ctrip contributed 23.3% of annual transaction, ranking the first. The second, Tuniu.com, took up 9.8%, followed by Lvmama.com with 3.4%.
CTCNN suggested there would be following characteristics of China online vacation travel market in 2014:
- Government was advocating thrift and the Tourism Law hit the industry harshly in 2013. Therefore, 2014 would be a turning point for transformation and upgrading of travel agencies. Online (and mobile) market, service popularization, capital diversification, market concentration would be key words for traditional travel agencies.
- Travel product was entering an era of good quality. Standardization and transparency became the fundamental elements of online travel product. Online travel agencies would develop even faster in 2014.
- The rapid increasing mobile market would boost mobile travel client. Self-guided tour, tickets package, destination service would lead the market.
- Those relative independent part of travel services, such as visa, scenic ticket and car rental, were becoming the entry points, as the development of internet and mobile internet.
- “Travel product leftovers” were justified. The market would develop fast with disorder in 2014, and become a growth point for comprehensive enterprises.
- Different type of social fund including VC would embrace travel enterprises with more enthusiasm in 2014, especially online travel agencies. As for traditional travel agencies, they might experience transformation, financing, M&A and even perish.