Mobile bookings at Chinese travel agent eLong are expected to account for 25% of all transactions by the end of September. This means mobile has now surpassed eLong’s call centre as its second-biggest booking channel and sparked a change in the company’s sales and tech development focus.
“To capture this great market opportunity, we have moved from an online hotel strategy to a mobile hotel strategy,” said Guangfu Cui, Chief Executive Officer of eLong.
“We are also establishing a US$100 million fund to encourage innovation in this fast-growing area.”
Mobile is part of a strong growth story for eLong with “hotel room nights stayed” in the second quarter increasing 58% to 5.8 million room nights compared to 3.7 million the year before. Looks like there’s some pressure on commission though with hotel commission growing slower at 29% year on year.
Net revenues for the second quarter increased 27% to RMB234.3 million (US$38.2 million), while net income came in at US3m.