New Report Forecasts Hyper Growth of Online Travel in China

A new report out yesterday from The Data Center of the China Internet is forecasting hyper growth for the online travel industry in China. Revenue in 2008 is set to surge to $527 million from $309 million in 2007. From 2008 to 2009 revenue growth will accelerate to $1 billion.

With revenue set to triple over the next 24 months you should expect to see both Ctrip's (Nasdaq:CTRP) and eLong's (Nasdaq: LONG) business thrive going forward. With the Beijing Olympics quickly approaching in mid-2008, now may be the time to take positions in these companies.

My favorite is eLong simply because of its valuation. The company has over $160 million in cash, no debt, and just a $200 million market cap. With incredibly strong fundamentals propelling the business, eLong could be poised for considerable upside. Expedia (Nasdaq: EXPE) has made their bet by taking a 52% equity interest in eLong. It certainly doesn't hurt having Barry Diller and Expedia's global resources in your corner!

Disclosure: The author is an eLong shareholder