Travel Agencies Seeking for New Ways to Survive
source: date:(2008-11-19)


The economic slowdown has resulted in a slump in tourism and has placed many travel agencies in Beijing in hot water. Some companies are taking new measures to liven up the market.

Tourists from America and Europe used to constitute a large share of the tourism market in China. However, as the financial crisis aggravates on a global scale, the number of foreign tourists coming into China has declined significantly. As a result, many travel agencies have switched their focus from inbound travel to domestic tourism. BTG Travel Service is one of those companies. Marketing director of the company Guo Lingmei introduced the strategies at her company.

"Our company is trying to minimize the loss caused by the shrinking inbound tourism sector. Instead, we encourage our employees to develop new products and mainly focus on domestic market."

Jie Da Travel Service in Beijing is also taking action to stimulate the market. For example, the company has opened routes to some new destinations. As it gets colder in the north, the company believes newly opened tropical islands will be warmly welcomed. Currently, a trip to a coastal resort in Philippines or Indonesia has fallen to 4000 to 5000 yuan, almost 2000 yuan lower than a couple of months ago. In the meantime, the company keeps a close eye on the low-priced and short-distance trips.

Marketing manager Liu Gang said:

"The luxury and distinctive package tours cannot cater to the current market needs. We should provide the customers with some short-distance and economical options."

Some market analysts also point out that the gloomy economic situation could cause many small travel service providers bankruptcy while some other companies may take the chance to expand their business. Liu Gang suggests his company may go one step further by opening up new offices in other cities.

"We plan to set up new branches in some cities and develop new products according to the local needs. By doing this we hope to gain a firm foothold in the industry."

If winter comes, can spring be far behind? As the tourism market enters into the winter early, travel agencies are just waiting for the next spring.

 

   
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