Local Travel Agencies Face Survival of the Fittest

China National Tourism Administration Shao Qiwei, held recently in Beijing, the Tenth Round Table Conference on the World Tourism Travel revealed that China will relax travel market access standards on a pilot basis, and gradually opening up to foreign investment China’s team travel outbound tourism business. National Tourism Bureau is introduced for this year’s “team of foreign investment in China outbound travel business management approach”, under the guidance of the laws and regulations to promote the business development and cooperation. This means that foreign investment community will be leaving before the end of the right to operate.

“Outbound” was once considered a foreign community in China last closed area will be lifted now, it seems, “the wolf really came!” But reporters have visited the Guangdong market found that while many in the industry say “survival of the fittest” is inevitable, but major local travel related to official stressed that the local travel agencies have their own advantages and fear, “Dances with Wolves”, but needs a new, expanding industry chain, positive change in business thinking.

Policy Interpretation: The first clear high-end tour to encourage foreign investment into the country the economic rise of China and the National Suizhe degree Tigao wealthy Chinese residents of Jingnei and outbound tourism market is more prominent as earnings growth potential industries. It is understood that the National Tourism Administration has also announced to encourage a wide range of international capital into China’s tourism industry to accelerate the upgrading of domestic tourism industry, promoting China from the “tourist destination” to “travel power” forward.

Shao also said China encourages broad access to international capital equipment manufacturing industry, tourism, travel media and tourism education and training industry. Ocean Cruises, Travel helicopters, high-level tourist car, as well as adventure tourism, plateau tourism, marine tourism, and other characteristics of the rich and the middle class loving tour equipment manufacturing, are interested in upgrading the industrial areas of China, “China on the equipment manufacturing capacity of modern tourism ‘is still not enough, the level is very backward’. ”

Industry, said Shao Qiwei’s remarks can be understood as “the State Council on Accelerating the development of the tourism industry on” the specific measures, also means that the National Tourism Administration for the first time explicitly to encourage foreign investment in domestic high-end travel. It is reported that in December last year the State Council issued “to speed up the development of tourism on the view” that make tourism into an economic “strategic pillar industries” and the people more satisfied with the modern service industry. China in 2020 and strive to make tourism industry scale, quality and efficiency of basic level of world tourism power.

The signals also reflects China’s new rich class of tourism demand, is no longer limited to “search sites, a visit to this” traditional model or the bulk of the travel product, they often hesitate to pay the cost to personalize the “high Custom “tourism consumption. In this regard, general manager of outbound tourism Guangdongzhonglv Yiqi Hong told the reporter that asked the Chinese tourism market, a unique travel experience of consumer groups has been formed, a large-scale “custom” travel time has come, Guangdong tourism market is the sights of the the development of the field of development.

Approved by the National Bureau of Statistics, in 2009 per capita in Guangdong GDP40748 dollars (about 6000 U.S. dollars), indicating that the opportunity to Guangdong in the nation, the first to achieve the upgrading of the tourism industry, expand high-end tourist market, but do not necessarily have the opportunity to successful development of software and hardware facilities can keep up with the key, high-end consumer environment tourism facilities Tourism Industry will be the key to whether the first breakthrough.

Industry view: shuffle is inevitable, but “more good than harm.”

According to industry sources, open outbound foreign travel agencies will be eligible for a number of small travel agents or tour operators are not standard big impact, local travel agents face a reshuffle is inevitable, there will be some travel agents were out of the market; but on the whole ” more advantages than disadvantages, “Dashe fear domestic brands, “Dances with Wolves.”

Yiqi Hong said, foreign investment into the tourism industry help to promote healthy competition and improve the overall management of domestic tourism and domestic travel agencies only focus on group travel service and the traditional “three large” – domestic travel, inbound, outbound You is not enough, in the tourism market segments and high-end tourism products and there are still a wide gap between foreign countries, the traditional travel agencies to transition to broaden the industrial chain, positive change business ideas.

Guang Zhilv relevant responsible person said, opening up outbound foreign travel status, on the big domestic brands will not be much of society, first of all a long time local business community, with fixed resources, but also familiar with local consumption habits, hold consumer psychology accumulated a good brand effect, the public still has feelings for the local community have confidence in; second point in the profits of foreign investment income balance of social stress, carefully planned itineraries require a higher profit point, “roaming prices” are generally more high.

Guang Zhilv Marketing Center, Wen said before, foreign travel agencies in the management level, operational concepts, planning ideas and insight on market forces, and so does the forward-looking stronger than the domestic community, there are many worthy of national groups to learn where to promote the improvement of the standards related to the domestic community, but also to some extent inhibit the domestic travel market vicious price wars and other competitive situation. South Lake Country Holidays Travel west on Army Deputy General Manager Zheng said the entry of foreign travel agencies will greatly change the current low-cost competition, unfavorable market conditions, the quality of services and advanced management experience, will enable the tourism market competition, industry consolidation to raise the degree of concentration of small and medium-scale travel agencies or face elimination, while the big travel brands and services by enhancing competition, to achieve upgrade, “is bound to promote local travel agency directly brains out of the vicious circle of product homogeneity, to how to Optimization of outbound products and services to a higher strategic position.”

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