NEW YORK - Shares of Chinese travel service provider Ctrip.com International Ltd. fell more than 6 percent on Tuesday, as an analyst cut the company's rating and price target due to concerns about China's economy, near-term spending and increased competition.

THE SPARK: There has been increasing concern that China's economy may slow down, which has put pressure on companies based there. Travel companies also continue to find themselves competing against one another on price, as consumers worried about economic conditions look to get bargains on their trips.

THE ANALYSIS: Michael Olson of Piper Jaffray said in a client note that Ctrip.com will likely boost its spending in the next one to two quarters as it ramps up its investments in product development, sales and marketing. "We believe Ctrip is investing incremental operating expenses in mobile platforms, international air ticketing fulfillment, multi-city online bookings as well as extra sales support to market and sell a broadening portfolio of travel offerings," the analyst wrote.

Olson also believes that Ctrip.com will probably face more competition for online bookings of low-end consumers.

"While not any one specific company has emerged as a significant Ctrip competitor, we believe the combination of an attack from multiple competitors, competing largely on price, may lead some investors to become nervous about potential for market share losses," he said.

Olson lowered Ctrip.com's rating to "Neutral" from Overweight" and reduced its price target to $36 from $41. A Ctrip.com representative could not be immediately reached for comment.

SHARE ACTION: Ctrip.com's stock fell $2.25, or 6.5 percent, to $32.21 in morning trading. The shares have traded in a 52-week range of $29.59 to $53.16. For the year to date, the stock is off about 17 percent.

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Source:cnbc