B2B travel conference organiser EyeforTravel has released a new report that explores the Chinese outbound travel market, with particular focus on China’s largest distribution platform, Ctrip.
The largest distribution platform in China, Ctrip’s gross revenues have grown at a 42% CAGR over the last 5 years, according to EyeforTravel’s report “The Future of the Online. With China’s outbound tourist market expected to account for over 160 million trips by 2020 (McKinsey, 2018) anyone looking to grow their revenue stream should understand China’s biggest players.
With over 300 million registered members worldwide, Ctrip has successfully established its position as the world’s third largest OTA. Since opening in 1999, the company has seen a steady increment in revenue, combining the online travel agency and tour operator models, and offering the largest product portfolio available in the Chinese market.
With a near monopoly on Chinese outbound travel and mobile engagement in its home market other brands would kill for, Ctrip has become an online travel powerhouse. They’re the fastest growing global OTA, the largest online consolidator of travel and accommodation in China, and the third largest OTA in the world.
The Chinese outbound travel market is growing at year-on-year at a rate of 16.4% and is expected to be worth over $135 million by 2020. Clearly, Ctrip have their finger on the pulse when it comes to the complexities of the complexities of the Chinese outbound traveller, behaviour partners and emerging trends. Having this level of understanding is of paramount importance for anyone looking to secure a place in the booming Chinese travel market.
To reflect this increased interest in China, EyeforTravel has created a report detailing Ctrip’s stratospheric growth and exploring what the future holds for this rising star of online travel, both as regional and global travel players.
EyeforTravel’s latest report contains a comprehensive guide of the pros and cons of partnering with Ctrip – while the company is sure to provide you with access to the Chinese market, as competition in the global OTA market increases, it may be more cost-effective to partner with players who work closer to home.
Since Ctrip has a near-monopoly in its home market of China, their local industry knowledge is a huge advantage for anyone looking to sell in China – partnering with them will undoubtedly increase your exposure to Chinese travel consumers. Still, with Booking and Expedia increasingly eyeing up the Chinese market, the report evaluates the possibility of Ctrip retaining its stronghold over China’s outbound tourism industry.
The report evaluates Ctrip’s success and considers some of their key strengths and competitive advantages – among them, their dominance in the Chinese industry, scale and their vertically integrated model and comprehensive product offering.
On the other hand, key weaknesses include Ctrip’s dependence on the Chinese market, generally low brand awareness in other areas and its low profitability compared to international peers.
Finally, the report evaluates Ctrip’s future prospects, considering everything from its strategic focus to its expansion into other parts of the world.
Helen Raff, Chief Product Officer at EyeforTravel says “this report really covers everything you know about Ctrip and the local Chinese market. Anyone hoping to market their product to Chinese tourists should look at this to get a better understanding of local consumer trends and what it takes to make it big in China.”
Tags: china, ctrip, EyeForTravel, OTA
