Globetrotters: Online Travel Agencies in Usa, China and India

Globetrotters: Online Travel Agencies in USA, China and India

Market opportunities and comparison of each of the markets are prime considerations taken into account while considering China as the country where it is advisable to start an Online Travel Agency.

Growth rate is a prime factor when considering a new venture in a market with established market players with China and India having comparable growth rates. Higher growth rate provides leverage for companies to grab market share. Hence it would not be advisable to enter US market even though the market size of US is the largest.

China apart from having a higher CAGR than India also has a market size almost four times the size of India. Other front where China scores over India is good internet penetration as a percentage of population. China’s population being higher than India, even for the same penetration percentage, more people would have access to internet than India.

60% growth is expected in mobile subscriptions and a huge opportunity lies in tapping this potential in China. IT infrastructure to cater to both internet and mobile phone customers can be built from the inception of the company, saving on the up gradation or modification costs on old systems compared to the other established players.

Business model such as that followed by Ctrip in China, where an agency partners with hotels for guaranteed bookings can be replicated to boost commission revenues.

Regulation is a concern for China and needs to be factored appropriately. But given easing regulations such as lifting restrictions for setting up branches for travel agencies with foreign investments, gives a positive indication in this regard.