Chinese Internet travel companies are consolidating as today Et-china, a Guangzhou-based online travel company, announced that it has acquired the Beijing-based Yoee.com, a leading online seller of air tickets in China, for an undisclosed amount.
Yoee.com was founded in 2003 by Justin Xiong and the Beijing Foreign Enterprise Air Service Ltd, the biggest airline ticketing consolidator in China, and is now one of the leading online travel brands in northern China. Yoee.com was one of the first travel websites in China to provide real-time online search and booking services for both domestic and international air travel.
This acquisition should have compelling strategic and financial benefits for both companies. The combined entity will consolidate Et-china's online travel division as a top three player nationwide and significantly increase its product, distribution and service capabilities across the whole country in the fast growing frequent independent travelers market.
Among China's online travel companies, Ctrip.com occupies over 50% of the market share, eLong.com ranks second with market share of about 15%. This acquisition might cause a reshuffle in China's online travel market.