Alibaba Group based in Hangzhou and held by the Ma family, is a Chinese company specialized in online business (search engine of shopping with a details and payments service as well as a B2B portal). It’s the company which makes the most sale in its sector. It’s increasing very fast and became popular in China.

Launching of Altrip

 

www.alitrip.com

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Tuesday, the group announced they want widen their online travel service. The service will be exploited under another brand independently. An increase of the customers is expected by the same occasion.

According to an email sending to the Global Time, Alitrip will be the new brand of the Taobao Travels Company (flight sale and Hotel site and aggregate) which was already active on the Alibaba site under the Taobao.com name site. This one will be specialized in the trip services during vacations with also flight and hiring reservation, service which it didn’t provide. That should enable him to have a greater market share as it wasn’t really popular.

The online travel market

During the 2nd quarter of 2014, following Analysys International data, one of the Chinese leaders of online trip agency, Ctrip held a market share of 51%, eLongInc, another leader, had as for him 8.2%. Ma, very realistic specified that the launching of Alitrip shouldn’t have a large impact on like these. However, Alitrip has advantages: its large database of users cumulative by Alibaba on the one hand and its search engine of travel information very effective.

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source China Internet Watch

It should be known that the online travel market in China is very prosperous knowing a strong demand. 58.56 Billion yuan. This what the online Chinese travel market represented in the3rd quarter of 2013. A considerable share. Alitrip will not need to seize the existing market shares but will be able to try to satisfy the Chinese consumers diversified requests.

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Competition in online travel market

The competition in this sector is rather hard each one trying to attract the customers by prices and enticing promotions. We could see eLong and Ctrip carried out a price battle the lasting December 2013. The Alitrip rival will be Qunar.

According to the specialists, a diversification of their services would enable them to decrease this competition and attract more consumers. Currently, they are specialized in 3 fields: transport, hotels reservations and sales tickets of tourist sites. More and more Chinese tourists, especially the young people, prefer tailor-made services. In this direction, the online travel companies have the possibility of extending their services in order to touch more people. Moreover, co-operation between them could also be beneficial to them. That was the case of Ctrip and Qunar which started to make it during the year 2013 to cope with the other competitors. This is why Alibaba has strategically invested in July 2013 in Qyer, Chinese tourism website providing travel guides and have a forum allowing everyone to exchange and share information. He hopes in this manner increase his online travel market.

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Conclusion:

Online travel market is in growth. Each actors of this field try to attract the Chinese tourists. If you wish to penetrate the Chinese tourism market , don’t hesitate to join our digital marketing company, based in Shanghai and expert in this field, Gentlemen Marketing Agency, who will be pleased to help you concretize your project in China

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