(Yicai) Oct. 15 -- China’s online travel agencies are starting to roll out a ‘book now, pay later’ strategy, which means travelers only pay on the day they use the booking, as part of a slew of promotions the platforms are preparing for the Double 11 e-shopping bonanza next month, to attract more customers as competition in the country’s tourism sector gets tough.

Travel giant Trip.Com launched its "Reserve Now, Pay Later" feature yesterday, which allows customers to make a booking without any payment, and removes the risk of customers losing money should they change or cancel the booking.

The offer mainly applies to hotel reservations and includes 90,000 hotel package deals from 300 hotel groups in 15 countries and regions worldwide, a company insider said. The Shanghai-based firm's hotel packages are normally valid for 120 days, but can be valid for up to one year. Bookings can be canceled at any time without any payment due.

"This is a way for e-travel agencies to attract customers from other channels,” Wei Changren, founder of travel news portal BTIII, told Yicai. “Normally, if you pay first and then cancel, airlines and hotels will not refund the full amount. Therefore, some businesses are adopting a "no-payment booking" strategy during the Double 11 promotion period so that customers do not risk losing money.”

Online travel agencies are facing intense competition from social media platforms and live streaming studios, which might not specialize in tourism but which have a large network and huge databases. Platforms such as instant messenger WeChat and on-demand services giant Meituan are siphoning off a lot of customers. This has put pressure on online travel agencies, forcing them to create new models or offer bigger discounts to attract customers.

Trip.com is also planning to link arms with over 100 global travel brands to provide subsidies amounting to tens of billions of Chinese yuan, equivalent to billions of US dollars, during the shopping bonanza, the person said. This initiative aims to encourage consumers to book their holidays at discounted prices, which will be valid until the Labor Day holiday in May next year.

Editor: Kim Taylor