China's travel market and Internet-based travel consolidators will experience strong and steady growth in the next few years, driven by increasing independent travel and China's robust economic growth, Deutsche Bank said.
China's leading online travel consolidators, Ctrip and eLong, currently hold two to three pct of the travel market but are poised to capture the lion's share of market growth.
'We believe that the leading travel consolidators are well positioned to eventually dominate the entire travel industry in China,' the brokerage said in a research report.
Ctrip, which Deutsche Bank estimates holds 50 pct of the market for hotel bookings, and rival eLong which holds 20-25 pct, will dominate the market due to their control of hotel supply and air ticket and hotel room demand as well as an industry-wide move from tour-group travel to independent travel.
The brokerage estimates China's spending on domestic tourism will reach around 500 bln yuan this year and it expects China's travel market will grow at 12.3 pct compounded annual growth rate from 2003-2006.
The market will also see a 40-50 pct year-on-year growth in travel during this year's peak travel season.
External Source - For the complete article click here
Source - AFX News
