Chinese online travel service provider Ctrip.com has announced that it will compensate consumers for any differences in online booking prices.

Ctrip.com said that, from March 10, 2010, all the room rates it provides on its website for hotels in China will be the lowest available. If any consumers find room rates lower than those on its website, it will pay them compensation to the value of three times the price difference.

This is the first time ever that a travel service provider in China has promised to compensate consumers for price differences.

China’s online travel business has been growing rapidly in recent years. In 2009, the total number of online travel service users in China reached 30.24 million, an increase of 77.9%. Meanwhile the number of online travel service providers was also on the increase, making the market competition even fiercer. It is widely believed that Ctrip.com is offering this new policy to retain users in the face of intense competition.

Source: China CSR (March 15, 2010)