User Scale and Utilization Ratio of Online Travel Booking/Mobile Online Travel Booking Dec. 2015 – Dec. 2016 10,000persons 40000 60% 29922 30000 40.9% 25955 37.7% 26179 40% 20990 37.7% 20000 33.9% 20% 10000 0 0% 2015.12 2016.12 The number of online travel booking users The number of mobile travel booking users The usage rate of online travel booking (by all Internet users) The usage rate of mobile travel booking (by all mobile Internet users) Source： Statistical Survey on Internet Development in China 2016.12 Figure 58 User Scale and Utilization Ratio of Online Travel Booking/Mobile Online Travel Booking Dec. 2015 – Dec. 2016 In 2016, online platforms and traditional travel service providers are playing a cooperation-competition game in online booking market. In terms of online air ticket booking, a more fierce competition between OTA platforms and airlines further reduce the profitability of platforms. Despite the pressure of “enhancing direct 18 selling and reducing agent distribution” , airlines still rely on online distribution. OTA needs to accelerate its transformation while maintaining its cooperation with airlines. Therefore, in 2016, the market performance was shown in the following two aspects. First, airlines expedited the development of self-operating channels; second, OTA platforms prepared to establish their own airlines, made strategic investment in the offline tourism chain, and marched towards the Internet insurance and financial fields. In the field of hotel booking, although hotel unions have exerted some impacts on OTA platforms, the competition of hotel booking still exists between OTA platforms due to the limited pricing power and industrial influence. However, acquisitions between OTA platforms gradually differentiate their product positioning. After Ctrip purchased Qunar, Qunar ceased its high-end 18 increasing direct sales of air tickets and reducing the sales by agents 68 The 39th Statistical Report on Internet Development in China