VC firms find a sweet spot in travel agencies

Venture capital firms are increasing their investments in Chinese companies that curate outbound and weekend travel plans for domestic customers, industry sources said.

"With the Chinese government keen on upgrading domestic consumption, we are extremely positive on companies that provide outbound travel and weekend getaway packages," said Jixun Foo, managing partner of global VC firm GGV Capital.

Foo has already led investments in several such deals, including one for Chinese online travel agency Qunar, Beijing-based vacation apartment booking platform Tujia, a San Francisco-based last-minute hotel-booking app called HotelTonight and taxi-hailing app Didi Dache.