Analysis Tug of war tightens between China’s traditional travel firms and industry’s online upstarts
State-owned mega-firms still dominate – but as more younger, wealthier Chinese travel abroad, companies are having to work harder than ever for every airline seat and bedroom booking
An increasing fierce tug of war is raging between China’s massive traditional travel companies, and the country’s growing army of online travel agencies (OTAs), as they scrap for business especially among younger, wealthier, more ambitious travellers.
The fight for customers has become arguably the most obvious example of just how quickly, and disruptive, information technology has become in reshaping some of the country’s most significant industries.
Yu Zhe is a 36-year-old Shanghai-based white-collar worker who happily spends thousands of yuan each year travelling abroad.
She says she researches her options thoroughly, and sees for herself just how hard companies are having to work to try and hold onto clients – but ultimately she says that’s good for the customer.
“It gives us more choice, and allows us to do some very accurate comparison shopping,” she said. “Moreover, you feel that every single coin you spend on travel is worth it.”
Chinese travellers have become the biggest driving force of the global tourism market, as increasingly well-to-do mainlanders spread their wings further in search of new experiences.
Last year, 117 million mainland tourists travelled overseas, a 9 per cent rise from 2014, according to China National Tourism Administration.