Which numbers do you believe though? And which of the two markets would you rather invest in if you were an online player? Yeoh Siew Hoon tries to find the answers at a travel distribution conference organized by Eye For Travel in Singapore.

Graeme Wood, founder of wotif.com, recalled an experience he had in China when he was exploring the possibility of expanding his last minute hotel site to the land of dreams.

This was roughly the conversation he had with the potential partner.

Chinese partner: "Do you have a Chinese language site?"
Wood: "No."

Chinese partner: "And people pay by credit card?"
Wood: "Yes."

Chinese partner: "And people pay for the room in advance before they use it?"
Wood: "Yes."

Whereupon the Chinese partner asked if Wood would be interested in importing fake Rolex watches to Australia.

Wood told this story to an audience at the Travel Distribution Summit Asia held in Singapore last week to illustrate that much as China is the land of dreams for travel sites such as his, it could also be the land of nightmares if you do not understand the market.

It is also the land of numbers, as speaker after speaker, to demonstrate the potential and peculiarities of the China market, shared statistic after statistic until delegates were numb by numbers.

87 million Internet users (6.8% penetration), less than 10% buying online (compared with 30% in the US), 25% of online auctions transactions completed in person, 2 million credit card holders …

More numbers: Second largest Internet market in the world after USA (201.6 million), ahead of Japan's 66.7 million; 10.7% of world online population and will outnumber US by 2010; 13.2% of all Internet users worldwide speak Chinese …

And oh yes, let's not forget mobile phones – 270 million subscribers, 21% penetration. SMS could be the way to go for the China market, delegates were told.

And more numbers from Ctrip.com, one of the two major travel e-commerce players in China: 30% of transactions are completed online; it employs a call centre of 1,000 people; it sells 150,000 tickets and 370,000 room nights a month and has 8 million members, 10% of whom are active.

OK. We get it. China is a big market and is growing. It is also a challenging market – unfamiliarity with credit card payments, lack of integrated banking system, government controls still a key factor in distribution …

Just as I was about to drown in the sea of numbers, along came India. Deep Kaira, founder of makemytrip.com, the largest online player in India, had a more interesting set of numbers though.

India's numbers are as huge as China's – 30 million Internet users, and growing at 50% per year; 40 million mobile phones, growing by 100% a year …

And the good news: It has an integrated national banking system and clearing system; there are 5 million Internet banking accounts; and fibre optic infrastructure is being put in place in 50 cities and towns.

Kaira compared numbers in India today and that of the US in 1996 (respectively), at the point when e-commerce took off in the US.

Internet users: 30 million vs 45 million
Online shoppers: 12% (3.6 million) vs 5% (2.8 million)
Online banking: 15% vs 4%
Mobile phones: 35 million vs 44 million
SMS: 25 million vs none

India, he declared, is ready for take-off.

Thus when Wood was later asked which market he would rather go into, he said, "India makes a more interesting story and besides, I don't wish to import fake Rolex watches."

So, take your pick but beware the numbers. You know what they say about statistics and damn lies.


The SHY Report
A regular column on news, trends and issues in the hospitality industry by one of Asia's most respected travel editors and commentators, Yeoh Siew Hoon.

Siew Hoon, who has covered the tourism industry in Asia/Pacific for the past 20 years, runs SHY Ventures Pte Ltd. Her company's mission is "Content, Communication, Connection". She is a writer, speaker, facilitator, trainer and events producer. She is also an author, having published "Around Asia In 1 Hr: Tales of Condoms, Chillies & Curries". Her motto is ‘free to do, and be'.
Contacts: Tel: 65-63424934, Mobile: 65-96801460

Five Reasons Why You Should Sponsor The SHY Report ~ Click HERE.