Weak air ticket bookings and limited exposure to fast-growing sub-segments are eroding market share for loss-making online travel agency eLong.

An aggressive acquisition strategy has enabled Ctrip to consolidate its leadership of China’s overseas travel agency market. However, competition is growing, while margins continue to decline.

US online travel agent Priceline is poised to gain further market share in China, supported by its huge overseas hotel inventory and the trend towards independent travel among wealthier Chinese tourists.

China’s leading travel price comparison site is enjoying growing popularity among price-sensitive consumers, but rising costs associated with restructuring continue to weigh on its bottom line.

Leading online travel agencies are looking to diversify their offerings beyond air tickets and hotel bookings into fast-growing sub-sectors in order to tap into new pockets of growth in a fast-growing but increasingly mature market.

Our latest survey of 1,257 outbound tourists and 37 travel agencies nationwide reveals that Chinese tourists are travelling abroad in greater numbers and more frequently than ever before, but are spending less on shopping per trip and more on hotels, food and entertainment.

Our survey reveals that shopping remains central to the Chinese outbound tourism experience, but low- and middle-income travellers are becoming more selective about the goods they purchase on each overseas trip.

DANWEI – Due to a shortage of milk cows and/or powdered milk, China is experiencing an ongoing dearth of milk, causing the price of fresh milk to rise steadily. Also in this week’s Danwei Bulletin, travel agencies vie for custom during the December travel rush, and CCTV calls out Wumart for charging slotting fees.