Passers-by buys two travel agency equity, online tourism industry undercurrent

There is a wave of consolidation in the upstream supply chain, which is not good news for the downstream, focused on retail distribution of the cattle. In fact, the commercial model of the bull relies heavily on the supply of its online products to a wide and extremely dispersed line of travel agencies, in other words, the more dispersed the upstream suppliers, the greater the bargaining space of the cattle.

March 9, the road cattle Travel Network announced the acquisition of the majority of two travel agencies. The two travel agencies are located in Hangzhou, Zhejiang Zhongshan International Travel Service Co., Ltd. (hereinafter referred to as "Zhongshan Country Brigade") and Tianjin Classic Holiday International Travel Company Limited (hereinafter referred to as "Classic Holiday").

It is reported that Zhongshan national tour and the classic holiday in the local ownership of the 20 and 17 operating history, two are engaged in outbound travel and Taiwan business. In 2014, more than 70% of the turnover of the two travel agencies came from outbound and Taiwanese tours.

Cattle in transit it appears that after the acquisition of the two travel agencies, the company can quickly enter and expand the Taiwan tourism market, making it a further impetus to the growth of the company's business.

In fact, not only is the passers-by, many online tour operators from last year, in the acquisition of travel agents in the operation of a wave of waves of upsurge. With Cheng Chenghua Far Country Brigade's largest shareholder, outbound travel service providers All the letter travel Hand Bamboo Garden, mobile travel service to the app bread travel wholly-owned acquisition of Beijing Shanshui Holiday travel agency ... And in the frequent mergers and acquisitions, the entire online tourism industry chain is simmering, brewing new changes.

Picking

Passers-bull CFO Yang Jiahong told reporters that the reason is at this time to buy two traditional travel agencies, mainly in Taiwan to visit the qualifications. It is reported that Taiwan is currently in mainland China tourists to the top of the tourist destinations, but the mainland to operate Taiwan products require a special license, licensed travel agents can operate nationwide free line products, and license to the province of the company tour products. The former did not have the license. As a result, the Taiwan-owned products sold in the past are all sales of other travel agencies, not the self-employed products of cattle.

After the acquisition of Zhongshan National tour and the classic holiday, the passers-by have a license to operate Taiwan travel, while on the platform can be on the line of Taiwan's products. In Yang Jiahong's words, the shift from a third-party platform to proprietary goods can also enhance the quality control of the products.

In addition to the cattle, more and more online travel companies will be the acquisition of tentacles to the traditional travel agencies. In fact, the mergers and acquisitions upstream of the industrial chain began a few years ago. In 2010, Ctrip acquired a 90% per cent stake in the tourism business of the Hong Kong wing on tourism by 88 million U.S. dollars, and in 2012 it bought a travel for everyone in Nanjing. The same way network has previously announced that the future will be through the exchange of shares of traditional travel agencies.

Some industry insiders said that online travel companies in the scale of development to a certain extent, there will be the acquisition of traditional travel agencies need. After all, the tourism industry chain is very long, the destination tourism experience and tourism service quality difference is very large, so the link under line online is very easy to dislocation. Therefore, the current infiltration of travel websites to traditional travel agencies mainly aims to build a complete tourism service product line system, so as to enhance the resource control and service level.

Another car, in the face of the menacing electricity dealers, the traditional travel agency competition and operating pressure is getting bigger. The acquisition of traditional travel agencies by online travel companies has also provided a new outlet for travel agencies. Even, many traditional travel society asks the traveling electricity merchant to invest, holding, in order to get rid of the Red Sea competition, the struggle of fate.

Change on the supply chain

It should be pointed out that the online tourism companies to use the capital advantage to complete the upstream layout of the industrial chain, virtually also to the supply chain of passers-by poses a new pressure.

Last September, Ctrip confirmed the shares of the Chinese-far country Brigade news. It is reported that the main business of the CTS is outbound tour business-to-business wholesale, its own outbound travel wholesale brand "Xiang Long wan Xing", is the main European outbound tour wholesalers. Prior to that, Ctrip has acquired the Main North American tour of the Wind network and the main attack on the Hong Kong tour of the Yongan tourism, plus Huayuan Country Brigade, Ctrip is taking a take-all industry chain will be the momentum of outbound travel resources of the wholesale end and the retail end. Its tourism and holiday platform has thus "sold out + agent distribution + Wholesalers," The multiple roles in the outbound tour of the industrial chain has won no small advantage.

According to incomplete statistics, Ctrip has already taken part in a car rental, easy to use cars, passers-by, passers-by, tourism, Yongan Travel, Cicada travels and other companies, but also with other investors high-profile set up a "sea cruise", trying to become the tourism of the Big Mac. From upstream to downstream, from the early introduction to the later use of vehicles, the tourism industry chain of almost all aspects of the investment in the scope of Ctrip.

In addition to Ctrip, Chung-letter tourism mergers and acquisitions of Bamboo Garden Country Brigade, also greatly enhance the industry chain bargaining power. Chuk Yuen Country Brigade is a very powerful European product wholesalers, with the letter merged, the letter became the largest European outbound wholesalers.

The report of the public Credit travel revealed that the company is the most important customer of its business volume. According to the audit report of the Chuk Yuen Travel, the 2013-year revenue of the Chuk Yuen National Brigade is 1.54 billion yuan, and the revenue from the first-largest customer is about 150 million. It can be foreseen that the merger of the Chung Shun and Chuk Yuen will probably enhance its bargaining power over the cattle.

It is not difficult to find that in the short term, there is a wave of consolidation in the upstream supply chain, which is not good news for the downstream, focused on retail distribution of the cattle. In fact, the commercial model of the bull relies heavily on the supply of its online products to a wide and extremely dispersed line of travel agencies, in other words, the more dispersed the upstream suppliers, the greater the bargaining space of the cattle. However, at present, the merger and reorganization of traditional travel agencies is speeding up, which not only affects the right of the passers-by in the industrial chain, but also the prediction of the future profit space of the capital market.

Not only that, those strong travel agencies also began to increase their own online booking platform, actively through the new media platform, such as micro-trust, micro-blog, website and other channels to enhance exposure, enhance the interaction with consumers viscous.

Compared with losing money and realizing profit, the change of the industrial chain is obviously the more thorny problem that the management of the road bull needs to face. From this point of view, direct investment in upstream enterprises may become a long-term strategy for the company to consolidate its supplier relationship.

Yang Jiahong said that the future will also acquire a strong wholesale resources of travel agencies, and will only acquire resource-type travel agents, will not buy the pure retail-type travel agency. "At present, we are looking at the domestic origin of relatively strong travel agents, with the right company will do some acquisitions." ”

However, he does not believe that the integration of the upstream industry chain will affect the way cattle in the industry's voice. After all, tourism products and books, electrical appliances are not the same, there are so many home and destination, there are countless kinds of cross combinations. Therefore, the domestic offline travel agency resources are quite dispersed. "he said.

(Original title: The Cattle to buy two travel agencies online Tourism brewing New Change Bureau)