China's online tourism sector may see more integration, acquisitions

China's online travel industry may see more integration and acquisitions this year, driven by the giant Internet companies.

LY.com and eLong Inc announced their cooperation on Thursday. Tencent Holdings Ltd, a shareholder in both of the online travel agencies, was seen as the guiding hand behind the agreement under which LY.com shares its allocations to scenic spots and ELong reciprocates with its hotel slots.

"The cooperation with LY.com will bring 10 to 20 percent extra hotel business growth to eLong," eLong CEO Cui Guangfu said in a statement. Separately, Ctrip.com International Inc, Chna's largest online travel agency, and Qunar.com, the main travel search engine in China, have reportedly discussed a merger that, if completed, would create an enterprise with a more than $1 billion market value. Both companies are listed in the US.