Abstract: Relied on the Floating Car Data Collection Experimental System (FCDCS) constructed in our laboratory, the paper starts with the definition of travel speed in the traffic engineering theory; then, based on the real-time Floating Car Data (FCD), a stay time analysis based travel speed processing algorithm was presented. Through comparing the calculated travel speed with the collected travel speed in the field experiments, the research has validated that the average accuracy of algorithm is over 90 percents, so it indicates that the algorithm is capable of processing the FCD into travel speed simply and accurately. Finally, optimization measures are introduced into the data process. Accordingly, test result shows that the efficiency of data process has been markedly improved.