Online travel firms see turning point

While competition is intense in the Chinese online travel industry, the relatively low penetration rate compared with Western peers indicates there may be much room for growth for Chinese market players.

According to the latest numbers provided by UBS Investment Research, the penetration rate of online travel agencies was only around 10 percent in 2015, while the number in the United States was over 40 percent and that for Europe was nearing 50 percent.

Regarding the low penetration rate and Chinese tourists' increasing enthusiasm for both domestic and overseas trips, Xu Ming, analyst at UBS Investment Research, predicted that this year will be a turning point for online travel agencies.