A Study On Concentration Of Travel Agency Industry In China

Industrial concentration, in SCP (Structure-Conduct-Performance) analytical frame of industrial organization theory, is one of main factors in forming market structure, and affects market performance by influencing market conduct. The level of concentration and its influencing factors have always been the key contents of industrial organization theory.This paper's research object is China's travel agency industry. After the reform and opening up, China's travel agency industry changes market structure from Oligopoly to free competition. The direct reason of causing market structure's transformation is low institutional entry barriers of travel agency industry in our country under the background of gradual development. Meanwhile, low market entry barriers spur competitors from participation, resulting in more difficult to realize scale economy caused by high market concentration. So, it's quite necessary to re-integrate market structure of China's travel agency industry as a whole.This paper applies industrial concentration theory to the research of our travel agency industry's development. First of all, using the index of absolute concentration points, on the basis of expounding industrial concentration theory and development status of China's travel agency industry, it carries out the qualitative analysis and quantitative analysis to travel agency concentration points, which consequently make clear the status quo and performing regularity of travel agency, all those guarantee the result should be straightforward and scientific. Using for reference to mature model from abroad and specific character from industry, this paper explores the main factors of concentration degree by building the concentration measurement model. Finally, this paper continues to launch the demonstration analysis on relationship between profitability and concentration degree on the basis of existing researches.