Ctrip and Qunar start to dominate China's local online travel market
China's three internet giants; Baidu, Alibaba and Tencent have failed to get a large share of the burgeoning online travel business. Online travel websites Ctrip and Qunar continue to lead the sector after embracing the online-to-offline model, the Economic Observer reported. The report said that the rapid expansion of the country's middle class has contributed much to the boom in the tourism industry. Mobile transactions are recognised as a key earnings driver for online travel agencies, and according to a 2014 industry report, mobile internet users in China have reached 557 million, with mobile travel booking penetration hitting 24%.
China's online travel site, Qunar, is one of the leaders in the country's online travel and tourism industry. (Photo : www.ittime.com.cn)

China's three Internet giants--Baidu, Alibaba and Tencent (BAT)--have failed to get a large share of the burgeoning online travel business, as online travel websites Ctrip and Qunar continue to lead the sector after embracing the online-to-offline (O2O) model, the Economic Observer reported.



According to the report, Ctrip, Qunar, the local O2O online restaurant reviewer Meitun, and group-buying market DianPing, were recognized leaders in China's online travel agency market. Meitun and DianPing, two growing tourism-related industries, are reportedly worth more than 1 trillion yuan ($156.6 billion) each.



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The report said that the rapid expansion of the country's middle class has contributed much to the boom in the tourism industry.



BAT companies in search for new growth areas have set their sights on the rapidly growing online tourism sector, which started when Baidu first invested in Qunar in 2011. Baidu has invested billions of yuan in Qunar in the past four years.



This also includes Alibaba's Alitrip.com, launched in 2014 as replacement to its tourism arm Taobao Travel, with the aim to dominate in the fast-growing online travel market.



Similarly, Tencent has invested in LY.com, China's leading online leisure travel service, and in the travel website eLong.



Ctrip, however, continues to dominate the online travel agent market, as it commands 51 percent of the market, an industry report revealed earlier this year.



Data showed that Ctrip and Qunar took 49 percent and 27 percent, respectively, of the country's online travel market last year.



Mobile transactions are recognized as a key earnings driver for online travel agencies, and according to a 2014 industry report, mobile Internet users in China have reached 557 million, with mobile travel booking penetration hitting 24 percent.



The report added that Ctrip and Qunar became major players in the online travel market due to their big investments in integrating online-to-offline resources to support their operations.

