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Ctrip.com, China's largest online travel agent, said its first-quarter revenue surged 49 percent year-on-year due to growing demand from the country's booming tourism sector.

The Shanghai-based company reported a record $30.1 million in total revenue in the first quarter from its hotel reservation, air ticket and package tour businesses. Meanwhile, the company's net income grew to $8.4 million, or 25 cents per American Depositary Share, according to a company statement.

"We will continue to strengthen our brand and products to maintain high growth," said Min Fan, chief executive officer of Ctrip, during a teleconference with analysts yesterday.

The company, which listed on the NASDAQ exchange in 2003, predicts second-quarter sales to grow about 35 percent from a year earlier despite growing competition.

Company officials say the government's efforts to promote the use of electronic air ticketing will boost its ticketing services, with hopes consumers will find Ctrip more reliable than the small air-ticket agencies. Presently, small air ticket agencies account for more than 50 percent of market, while Ctrip has roughly 5 percent.

Ctrip, owned by Japanese online shopping mall operator Rakuten Inc, saw revenue from its ticket business jumped 50 percent year-on-year in the first quarter.

The company will continue its push into second-tier cities, where the pace of revenue growth is about double first-tier cities like Beijing and Shanghai.

China's tourism market has been booming in recent years as a growing number of well-off local residents travel at home and overseas.

The nation's online travel service market is expected to lead the growth. Online reservation and ticketing have proved appealing to business travelers and young consumers.

Chinese consumers spent 9 billion yuan on online travel products in 2006, and the market is expected to grow to 30 billion in 2008, according to Beijing-based CCID Consulting, a local IT researcher. Currently, Ctrip and eLong, its closest competitor, hold about 70 percent of the total market.

"There is still plenty room for newcomers in the sector," said Chen Wen, an analyst from CCID. "Ctrip and eLong's presence in second-tier cites is still quite weak and their package tour products are still limited."