China recorded a total of 5.54 billion domestic person-trips in 2018 while reached 141.2 million in inbound tourist arrivals. These amazing statics and the well-developed market are followed by a variety of new needs and travel modes.
Credit: The autor
Many years before, the package tour was popular in the Asian Giant. At that time, Thomas Cook hadn’t entered China, and numerous local travel agencies offered similar services. However, just a few years later, the booming of OTA in China has made it extremely difficult for traditional travel agencies.
Most of the OTAs have their overseas businesses, even international travelers could easily book cheaper flights or destination day-trips on their own. These platforms boast unique experiences varying from Chinese cooking class with a local market trip to Beijing Hutong night riding……
Credit: The autor
Culture experience, is a very important part for the people visiting China. Living like a local, is the new need for both international and domestic travelers.
Wherever there is a need, there is a market. Several years before, my aunt turned her unoccupied Beijing Siheyuan into a hotel, and the lovely courtyard has been recognized by TA as the winner of Travelers' Choice for many years in a row. My aunt prepares traditional Beijing hot-pot along with her guests or sets off fireworks together on the rooftop during Spring Festival.
The tourists become truly “guests” rather than “lodgers”, that's the DNA of her brand. And these are what traditional travel agencies won’t offer ever.
In such a situation, Thomas Cook, the world's oldest travel agency entered China tardily in 2015, facing the most fierce competition between OTAs and traditional travel agencies.
Caption: TC China offline concept store in Shanghai
Thomas Cook China smelled the danger, while Thomas Cook offered package tour to their customers, Thomas Cook China adjusted their brand strategy.
They placed particular emphasis from traditional package tours on a high-end segment with tailor-made services, as well as local experiences like morning market tour and foodie cruise from morning to midnight, etc.
Thanks to the foresighted action, Thomas Cook China sees little impact from UK closure. Although the traditional travel agency business is contracting, I believe the niche market would keep the brick and mortar, to some extent, "kicking and screaming."
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