The SCP Analysis Of Chinese Travel Agency Industry

With the reform and opening up to the outside world, the travel agency industry in our country has a very huge development. The industry scale and manage scale expand unceasingly, the structure of this industry becomes more and more completely. Travel agencies play a very important role in the development of travel industry in our country, and its position in the national economy is becoming gradually notable. China's travel agency industry has made much progress, but it's not mature. Some industry shortages are still exist. Therefore, educational circles gradually focus on the structure, conduct and performance of travel agency.By using Harvard school SCP analytical framework, The paper try to study structure, conduct and performance of travel agency industry, and give some suggestions which can be useful in the sustainable development of travel agency industry in our country. Therefore, the paper put particular emphasis on the analysis of problem. Firstly, the paper analyses the structure of our travel agency industry from the market concentration ratio, product differentiation, entry and exit barriers, and some other aspects of this industry. Research shows that there is a low degree of market concentration, unintelligible product differentiations and barriers to entry and exit in China's travel agency industry. Secondly, the paper analyses the conduct of our travel agency industry from the points of prices, promotions, merger and acquisition activity, and coordination of travel agencies. According to the research, we know that the distinguishing feature of conduct in China's travel agency industry is 'Price war', and the way of promotion, merger and coordination need to be enhanced. Thirdly, the paper analyses the performance of our travel agency industry from the number of tourists, index of profit and degree of satisfaction. Research shows that relative number of tourist reception only takes low percentage in the total number of tourists. In recent years, both the real profit and the profit margin decline significantly to a lower degree, on the contrary, the complaints rate increases quickly. Finally, this article proposes some macroscopical suggestions.