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Home » Feature » Analysis on China’s Tourism Industry 中国旅游业现状


Analysis on China’s Tourism Industry 中国旅游业现状

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As an emerging industry, the tourism industry, although started late, it developed in high speed with China’s reform, economic growth and opening-up. Also, many related industries have been benefited from the tourism industry, such as: hotel, catering, entertainment, aviation, transportation, etc. So that’s why the tourism industry is always called “the forever sun-rising industry” or even “the catalyst of the economy”.

With years’ of development, people’s concept on travel also changed a lot. They’re no longer satisfied with sightseeing, but also enjoy the immersion experience and vacation travel. Thus, high quality travel will be the trend in the future. Even facing lots of challenges, the tourism industry in China still has plenty room to grow.

The Struggling Travel Agency
The tourism industry is labor-intensive, while the travel agency plays an important role. According to analysis on the travel agencies, we’ll see that the entry barrier for China’s tourism industry is low, which leads to some drawbacks, such as the small scales, homogeneous service and intense competition.

The traditional travel agencies are now facing many challenges due to the changed travelling habits and e-commerce. Firstly, the tourism laws and regulations in China are not completed, which results the disordered competition, non-standardized service and some other disputes.

Secondly, Chinese people are still lacking of consumption habits despite their ever-growing purchasing power. They’re sensitive with the prices for hotels and airlines and not willing to spend much on service and dining. This calls for the growth of package tour. Some travel agencies provide the customized package for this niche market.

Finally, the services of China’s travel agencies are quite similar. If we look at some overseas travel companies, we will see that they not only provide the consultant services, but also able to provide some relevant travel-related financial services such as issuance of travelers cheque. In some emergency cases, they’re capable of liaising with the government for the coordination. These are what the industry bellwether can do.

Although, some are not optimistic with the travel agency, we don’t think so. The travel agency is still irreplaceable. No matter struggling for survive or finding a new path, creation and qualified service are always the keys for success.

The Changing Travelers
With the growth of economy, people are no longer to be satisfied by the materialistic demands. They’re also looking for the joy of mental world. Travel is the right way.

While we believe that you and me are both experienced some boring tours and be forced to do shopping or pay for the tips. It’s nothing about enjoyment. Plus the opening travel policies of Hong Kong, Macau, Taiwan and other overseas areas, the packaged tour becomes more and more popular.

Today, the market needs more personalized products. As a travel agency, it should breakdown the market into segments on basis of the different budget and habits. For example, for elderly people or some big-ticker spender, they would prefer the prepared trip planning, route arrangement. And they’re willing to pay for this. In addition, tourism attractions and shopping are not that attractive to them. Especially for those who have rich traveling experiences on both domestic and overseas destinations, how to build the cultural experience, natural scenery and leisure activities would be more competitive. Similarly, the development of the facilities and programmes are the key for repeated visits.

All in all, the travelers are still “hungry”, they are eager for more qualified travel products and more excelled services.

The Rising of Internet
Without doubt, the internet has changed human’s life. Most industries suffered from the booming of the internet, while tourism industry is one of them. In the past, people have to book the hotels, transportation from agencies, but now they can do this on internet. Goupon, the rebate points are both welcome methods in e-commerce. The traditional tourism organizations will be eliminated if they cannot find the solutions.

Of course, the emerging travel websites and APPs are both in trouble with the same problem: no characteristic. They have to play the price war due to the lack of unique features. While, it seems the travellers are those who get the benefits.

The rising of internet makes the whole tourism industry more transparent, it’s not only good for the travellers’ interest, but also drives the development of personalized travel products.















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