10th Five-Year Plan
Updated: 2006-04-18 16:48 In 2000, the total annual turnover of the 8,993 travel agencies was only
46.995 billion yuan while the total annual turnover of the tour company of
American Express of the same year amounted to US$ 17.4 billion, an equivalent of
140 billion yuan. The total turnover of all the travel agencies of the country
only accounted for over one third of that of American Express alone. The total
turnover of Japan Communication Commune was US$23.5 billion, an equivalent of
188 billion yuan. The total turnover of all the travel agencies of the country
only accounted for over a quarter of that of the Communication Commune. The gap
was huge. This is a basic problem that affects the development of the whole
industry.
The main problems that exist in the travel agencies industry include:
1. The structure of travel agencies is irrational. Generally speaking, the
travel agencies are small and weak. They promote repetitive products in the
repetitive markets, trying to attract repetitive customers. The competition is
at very low levels.
2. The low-level competition led to falling prices and
unstable service quality.
3. Travel agencies do not have the capability of
developing new products and new markets, which will affect the development of
the travel agencies industry in the long run.
4. Scale and network: China
need to develop big travel agencies or big tourism group companies to support a
powerful tourism industry.
5. The reform of travel agencies is behind the
time. The modern enterprise system should be widely adopted by the travel
agencies.
[Source:China National Tourism Administration; The Yearbook of China Tourism]
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