{"id":6315,"date":"2016-04-01T11:07:46","date_gmt":"2016-04-01T11:07:46","guid":{"rendered":"https:\/\/chinesetouristagency.com\/?p=6315"},"modified":"2016-04-01T11:07:46","modified_gmt":"2016-04-01T11:07:46","slug":"great-future-for-ota-in-china","status":"publish","type":"post","link":"https:\/\/chinesetouristagency.com\/great-future-for-ota-in-china\/","title":{"rendered":"Why OTA&#8217;s in China have a great futur !"},"content":{"rendered":"<h2><\/h2>\n<h2><span style=\"color: #000000;\">OTA\u2019s situation in China<\/span><\/h2>\n<p><span style=\"color: #000000;\">Before starting to explain and detail further information let me start my explanation with two mains ideas that might appeared obvious but are relevant points to understand the situation of online travel agencies (OTA) in China. \u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image001.png\" rel=\"attachment wp-att-6316\"><img loading=\"lazy\" decoding=\"async\" width=\"470\" height=\"312\" class=\"aligncenter size-full wp-image-6316\" src=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image001.png\" alt=\"image001\" srcset=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image001.png 470w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image001-300x199.png 300w\" sizes=\"auto, (max-width: 470px) 100vw, 470px\" \/><\/a><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The first main fact is the <a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/10-digital-strategies-you-need-to-learn-if-you-work-in-travel-industry-in-china\/\">booming of digital era<\/a>, in China there is more than 630 million Internet users, which is representing a huge part of potential customers that has to be taken into consideration. Chinese are hyper connected people, everything is happening through their phone, IPad or others\u2026etc, they are diving deeply into the 2.0 technology. The Chinese market is incredibly growing huge in China and more than 80% of Chinese use their phone to have access on Internet.<\/span><\/li>\n<li><span style=\"color: #000000;\">The second fact is tightly linked to the first point, with the booming of the technology and the consumers behavior change, 90% of Chinese go through Internet to get travel information before starting to purchase flight ticket, hotels booking\u2026etc.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Here are some figures and facts about the actual tourism situation in China<\/span><\/p>\n<p><span style=\"color: #000000;\">The outbound Chinese tourism is always increasing, according to the official press agency in China, last year, in 2014, 107 millions of Chinese travelled abroad, an increase of 20% from the year before. Chinese tourists spent more than 146 billion euros in 2014.<\/span><\/p>\n<p><span style=\"color: #000000;\">This year, we can notice an increase of 16% in both areas: spending and number of Chinese traveling<\/span><\/p>\n<p><span style=\"color: #000000;\">According to Boston Consulting Group, in 2030, <a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/social-media-agency-china-specialised-chinese-tourism\/\">Chinese tourists<\/a> may take about 1.7 billion trips per year, meaning double than in 2012 were it was only counted 500 million trips taken.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image003.png\" rel=\"attachment wp-att-6317\"><img loading=\"lazy\" decoding=\"async\" width=\"902\" height=\"527\" class=\"aligncenter size-full wp-image-6317\" src=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image003.png\" alt=\"image003\" srcset=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image003.png 902w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image003-300x175.png 300w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image003-768x449.png 768w\" sizes=\"auto, (max-width: 902px) 100vw, 902px\" \/><\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong><u>Who are the main OTA\u2019s in China?<\/u><\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">First let\u2019s start with an overview of the situation of OTA\u2019s in China. Here below, you can have a rough drawing of the main player among all these OTA is CTrip.<\/span><\/p>\n<p><span style=\"color: #000000;\">Others: Qunar, Best Tone, Feiren\u2026etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000;\">We will detail briefly below the main OTAs that have impacted the Chinese market.<\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"http:\/\/www.ctrip.com.\" target=\"_blank\" rel=\"noopener\">Ctrip<\/a> was founded in 1999 and it\u2019s one of the biggest online travel agency in China on 3 mains areas: hotel booking, flight ticket booking and travel. It is on the way to become a big player in this field in a world scale.<\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"http:\/\/elong.net\/\" target=\"_blank\" rel=\"noopener\">eLong<\/a> owned with LY the second market share in online travel agency market but as you can see the difference is huge with Ctrip that is owning more than half of market share.<\/span><\/p>\n<p><span style=\"color: #000000;\">Recently <a style=\"color: #000000;\" href=\"http:\/\/www.qunar.com\/\" target=\"_blank\" rel=\"noopener\">Qunar<\/a> has faced some problems with airlines companies that have decide to stop working with the agency because of too many complaints from customers and clients side. Two years ago, Qunar owned 42% of market share for online airplane ticket but it seems that this event could probably messed up the Qunar reputation.<\/span><\/p>\n<p><span style=\"color: #000000;\">Now that you know more about the main OTA in China, let\u2019s review some changes that happened these time for these OTAs and what is the main consequence following after.<\/span><\/p>\n<p><span style=\"color: #000000;\">So many mergers, contracts, deals between OTA\u2019s\u2026 Let me clear up some of them to give you a rough idea of what happening in this sector:<\/span><\/p>\n<p><span style=\"color: #000000;\">The real battle is not really between OTAs but between the giants <a style=\"color: #000000;\" href=\"http:\/\/www.tencent.com\" target=\"_blank\" rel=\"noopener\">Tencent<\/a>, Alibaba, and Baidu (BAT) fighting to get the first place on Chinese tourism market.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">After that Qunar (belonging to Baidu) has refused to collaborate with Ctrip, Baidu finally decide to cooperate with the giant name of Chinese tourism sector: Ctrip. Some rumors said that Alibaba is really interesting to acquire Ctrip too.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"color: #000000;\">Tencent has eLong under its wings but recently Tencent wanted to buy all market shares of eLong in order to have a more effective presence on Chinese online travel industry.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><span style=\"color: #000000;\">Alibaba want to get its part of the cake in Chinese tourism market. With <a style=\"color: #000000;\" href=\"https:\/\/trip.taobao.com\" target=\"_blank\" rel=\"noopener\">Taobao Trip<\/a> launched in 2010, this website is offering a large range of services and products with 2 million travel products, with airline ticket from 800 companies. Already about 500 million Chinese consumers have purchased products through the website.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong><u>OTA\u2019s trend in China compared to Western part<\/u><\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\">We will detail this part into two main segments. The first one is Chinese OTA agencies compared to western ones and the second one is OTA\u2019s trend in China compared to western side\u2019s trend.<\/span><\/p>\n<p><span style=\"color: #000000;\">Online Chinese tourism agencies have an important position in domestic place. However the main question remains, are those agencies can be seen as a threat or not to the western ones? Most of Chinese consumers still rely on the website they know and with the ones they are most common with.<\/span><\/p>\n<h3><span style=\"color: #000000;\">Threat or not?<\/span><\/h3>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image005.png\" rel=\"attachment wp-att-6318\"><img loading=\"lazy\" decoding=\"async\" width=\"335\" height=\"242\" class=\"aligncenter size-full wp-image-6318\" src=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image005.png\" alt=\"image005\" srcset=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image005.png 335w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image005-300x217.png 300w\" sizes=\"auto, (max-width: 335px) 100vw, 335px\" \/><\/a><\/span><\/p>\n<p><span style=\"color: #000000;\">International airlines companies know this point, a year ago, Priceline Company wanted to strengthen its position in the tourism area in China. The American company has invested about 500 million dollars in Ctrip, meaning that Priceline own about 10% of Ctrip investment. About 95% of Priceline\u2019s revenues came from hotel bookings.\u00a0 This new collaboration allowed the company to have a larger portfolio of hotel booking in China. \u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">At its turn, <a style=\"color: #000000;\" href=\"https:\/\/www.expedia.com.au\/\" target=\"_blank\" rel=\"noopener\">Expedia<\/a> sold the major part of its stake to the famous eLong for about 671 millions of dollars. About 60% of Expedia is owned by Chinese travel companies including eLong and Ctrip.<\/span><\/p>\n<p><span style=\"color: #000000;\">Looking at the trend, those airline companies are really aware of the Chinese market trend. In order to succeed to break into Chinese market you cannot impose yourself with strength, you have to come in a smoothly way by collaborating with the companies in place in China.<\/span><\/p>\n<h3><span style=\"color: #000000;\">OTA\u2019s trend in China<\/span><\/h3>\n<p><span style=\"color: #000000;\">The below graphic is showing that within the OTA\u2019s market, about 40% of the market is representing by the group travelers and 60% by independents travelers organizing themselves their own travelling program.<\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image006.png\" rel=\"attachment wp-att-6319\"><img loading=\"lazy\" decoding=\"async\" width=\"902\" height=\"527\" class=\"aligncenter size-full wp-image-6319\" src=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image006.png\" alt=\"image006\" srcset=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image006.png 902w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image006-300x175.png 300w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/image006-768x449.png 768w\" sizes=\"auto, (max-width: 902px) 100vw, 902px\" \/><\/a><\/span><br \/>\n<span style=\"color: #000000;\"> There is a new trend in China, more and more Chinese are planning their trip by themselves because they want to enjoy new experience by their own, meet new people and go to discover the entire world by themselves. Years ago, agency group traveler were dominating the online travel agency market in China. However, the trend tends to be reversed, Chinese consumers find their own interest to travel on their own.<\/span><\/p>\n<h3><span style=\"color: #000000;\">Why?<\/span><\/h3>\n<p><span style=\"color: #000000;\">The main reason is because Chinese people are really connected people, as said, and especially connected to Social Medias. Weibo, Wechat, QQ and even videos on Youku are really influent tools among Chinese consumers.<\/span><\/p>\n<p><span style=\"color: #000000;\">\u201cWhen Chinese wants to travel, they search like us , but different tools, their own tools. It is interesting to see that Chinese people has developed their own web system connected to their own language\u201d explained <a style=\"color: #000000;\" href=\"http:\/\/www.tailormadechinese.com\/\" target=\"_blank\" rel=\"noopener\">David<\/a> a Chinese Expert based in Beijing.<\/span><\/p>\n<p><span style=\"color: #000000;\">We can say that the booming of those kind of medias have led to the new trend. Why? Because through social networks, you can actually share with your others connected friends: tips, plans, pictures, advices and your opinion about your travel experience. To give you an example, one of my friend went to London but I didn\u2019t want to spend so much money and I don\u2019t know where to book my hotel, where to go visit\u2026Well let\u2019s ask my friend who went to London last week, let\u2019s see its post on Weibo and Wechat.<\/span><\/p>\n<h3><span style=\"color: #000000;\">How about the western part?<\/span><\/h3>\n<p><span style=\"color: #000000;\">In the Western area, this trend came much earlier than in China. People are getting used to travel by themselves, taking their bag and just go all around the world, \u201cbagpackers\u201d are really usual and normal thing in the western part of the world.<\/span><\/p>\n<p><span style=\"color: #000000;\">To conclude our analysis, online travel agencies have a bright future behind them, even if there is a new noticeable trend in China, most of Chinese tourists consumers will still rely on those agencies to plan their travel program or to go with travel agency group.<\/span><\/p>\n<h3><span style=\"color: #000000;\">Are you an OTA ? You think of enter into the Chinese Market ?\u00a0<\/span><\/h3>\n<p><span style=\"color: #000000;\">Do not hesitate to contact us and have a conversation with our specialist to know your options. \u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\"><img loading=\"lazy\" decoding=\"async\" width=\"395\" height=\"250\" class=\"aligncenter size-full wp-image-6320\" src=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/speacisliat.png\" alt=\"speacisliat\" srcset=\"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/speacisliat.png 395w, https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/speacisliat-300x190.png 300w\" sizes=\"auto, (max-width: 395px) 100vw, 395px\" \/><\/span><\/p>\n<p><span style=\"color: #000000;\">Our <a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/case-study\/\">case studies<\/a>&#8230;(yes we know , we have a lot of successfull experience for OTA&#8230; )\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000;\">Olivier VEROT, founder <a style=\"color: #000000;\" href=\"https:\/\/chinesetouristagency.com\/digital-agency-focus-on-chinese-tourists\/\">of Gentlemen Marketing Agency<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>OTA\u2019s situation in China Before starting to explain and detail further information let me start my explanation with two mains ideas that might appeared obvious but are relevant points to understand the situation of online travel agencies (OTA) in China. \u00a0 The first main fact is the booming of digital era, in China there is&#8230;<\/p>\n","protected":false},"author":10,"featured_media":6321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83,82],"tags":[159,333,344,144,345],"class_list":["post-6315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chinese-tourists","category-tourism","tag-chinese-tourist","tag-chinese-travel-agency","tag-ota","tag-social-media","tag-travel-agency-china"],"acf":[],"jetpack_featured_media_url":"https:\/\/chinesetouristagency.com\/wp-content\/uploads\/2016\/03\/OTA-China.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p67DXD-1DR","_links":{"self":[{"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/posts\/6315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/comments?post=6315"}],"version-history":[{"count":2,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/posts\/6315\/revisions"}],"predecessor-version":[{"id":6324,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/posts\/6315\/revisions\/6324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/media\/6321"}],"wp:attachment":[{"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/media?parent=6315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/categories?post=6315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chinesetouristagency.com\/wp-json\/wp\/v2\/tags?post=6315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}