Analysys International, an Internet based provider of business information about technology, new media and telecom industries in China, says China's online travel services market reached RMB254 million in the fourth quarter of 2005, among which airline ticket booking serviced 77 million, hotel reservation serviced 165 million, and travel arrangement serviced 12 million.

According to the research report China Online Travel Services Market Quarterly Tracker Q4 2005, recently released by Analysys International, hotel reservations is the major business of online travel, accounting for 64.96% market share. Currently online travel service providers can get an average commission of RMB47.82 per ticket from airline reservation services, which is lower than the room reservation service commission of RMB59.78 per room per night.

Analysys International says the total transaction amount of online travel in China reached RMB5 billion in 2004 and net income of the online travel channels was RMB680 million. Analysys International estimates China's total transaction amount of online travel will reach RMB 7 billion in 2005, up 40% compared with the year 2004.

As China's E-commerce environment gets mature, plus the travel industry is a pillar industry in China, online travel will further develop. Analysys International says China's online travel market will develop at an annual growth rate of 82.2% from 2005 to 2009 and the market size will reach RMB77.2 billion by 2009.