Increase in Chinese Tourism = Profits for this Online Travel Company

Robert Hsu, June 02, 2009

In this Issue:

A Booming Tourism Industry

These are just three of the many tourist attractions in China today. Since Chinese incomes are growing, they now have more funds to spend on frivolous things -- like traveling to historic sites around the region. I've seen this increase in travel firsthand during my numerous trips to China.

And like most Americans, the Chinese are turning to the Internet to book their flights, hotels and rental cars. This bodes well for China's leading online travel company.

Established 10 years ago, the Expedia of China has grown into the leading online consolidator of hotel rooms and airline tickets in China. An impressive 46% of Chinese professionals use this company to book their flights and hotels. That's more than all the other travel agencies in China combined.

The amount of Chinese using this company to plan their vacations is rapidly growing. There are more than 290 million Internet users in China -- making it number one in the world -- which presents tremendous opportunities for online companies in China. And since Expedia worldwide has shown that travel reservations is a business highly suitable for the Internet, you can see the incredible opportunities for China's leading online travel agency.

Currently, this company has a dominant position in the industry, claiming about 60% of China's travel market. And high-entry barriers -- including a fragmented travel industry with no centralized reservations database -- coupled with its first-mover advantage give this online travel agency an edge and protect it from competitors.

In my opinion, there's no better way to profit from China's expanding tourism industry. The company's shares are already up nearly 80% so far this year! But don't despair, there's still time to get onboard.

China's tourism industry is still in the early stages, giving this company plenty of room from growth. I'll be providing a more thorough update on China's tourism industry, and why this company remains the best bet in this sector. Don't miss out -- join China Strategy today!

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