Research On The Performance Of Online Tourism In China

With the rapid development and popularization of the Internet and the strong domestic tourism demand,domestic online travel industry gradually emerged.At present,the domestic online travel industry is in the rapid growth phase of its life cycle,and the market size is expanding.Online tourism has become a hot spot in China’s tourism industry.In this paper,we study the performance of online tourism industry in china,and use the SCP paradigm of industrial organization theory to analyze the market structure,market behavior and market performance.We also discussed the development trend of the online travel market.Firstly,we define the concept of online tourism and analyze its characteristics.Secondly,we analyze the online tourism market structure,market behavior and market performance by using the SCP theory of industrial organization theory.Thirdly,we establish the performance evaluation index system,and evaluate the market performance of online tourism in china by the entropy method.Finally,we study the influence factors of online tourism market performance,explain the reasons and put forward some suggestions.Conclusions: First,in terms of market structure,online tourism has a high degree of market concentration,its industrial concentration rate is more than 60%,and it has a rising trend.The type of market structure is changing from centralization to oligopoly.The market has some barriers,including capital barriers and brand barriers,while the exit barrier mainly refers to the high sunk costs.The products and services in the market are becoming more and more similar,which is related to the development stage of China’s online tourism.Besides,economies of scale is also one of the causes of this problem.Second,in terms of market behavior,low price is the most commonly used method of market competition,followed by advertising strategy.China’s online travel market is in the stage of rapid expansion,online travel agencies in order to expand their market share,and achieve economies of scale,usually use low prices to attract consumers and increase the stock of users.In terms of improving product differentiation,the company’s investments in advertising are far more than investments in R&D.However,in recent years,online travel agencies that have a certain market power began to increase investments in R&D,to establish its brand images.At the same time,due to the network comments,user satisfaction has become an important reference for online travel agencies to adjust their strategies.Third,in terms of market performance,the size of the market is growing very fast.The annual growth rate is more than 36%.But the penetration is low,the proportion of online travel accounted for the total tourism revenue less than 11%.The development of this market is not sufficient.It has not reached the scale effect.And there is still have a huge space in online travel market of China.The profitability of the industry of online travel is low,and listed companies require a lot of financial supports to continue operating,with a serious loss.The market performance needs to be improved.According to the comprehensive evaluation of the market performance,we can see that the market performance of China’s online travel market in 2011-2015 has been on the rise.In the three subsystems,the market development scale system and the social benefit system have a great contribution to the overall performance level,while the contribution of the economic benefit system is small.Fourth,in terms of market performance factors,market performance is inversely related to market concentration,but R&D investment and Internet penetration have positive impacts on market performance.The increase of the concentration of online tourism market in China has reduced the level of industrial performance.It may be caused by the low survival rate of the market,the single business model and the frequent price war.The problem of product homogeneity and disorderly competition lead to the reduction of the market performance.On the basis of the analysis,we put forward some suggestions.In the aspect of market structure,we should strengthen the differentiation competition and deal with the relationship between diversification and specialization.In terms of market behavior,it is necessary to regulate the price competition,encourage enterprises to research and develop,and promote inter enterprise cooperation to form a industrial ecosystem.