A Research On The Diversified Strategy Of Xiamen Zhong-xing International Travel Agency

With the technical progress, the increase in labor productivity, the increase of people’s incomes, and cultural development, tourism has become a common consumer good from luxury, with a growing role in the world economy. In recent years the tourism developed rapidly in China.Travel agency is an important carrier of tourism. In recent years due to intense competition between travel agencies it has become more difficult to expand and even maintain market share in the original business, operational risk of travel agency growing. In this context, diversification trend appears in travel agencies, especially the large travel agencies.The main research object on the diversification of tourism enterprises is large-sized tourism enterprises. The research on the small and medium-sized tourism enterprises is few.By taking Xiamen Zhong-xing International Travel Agency (a medium-sized international travel agency) as its research object, this paper firstly reviews the literatures on the diversification in the tourism market to lay a theoretical foundation, and summarizes the basic situation of Xiamen Zhong-xing International Travel Agency. It then mainly uses the PEST method and Potter’s five forces model to analyze the strategy environment of Xiamen Zhong-xing International Travel Agency, discussing in detail the necessity and feasibility to implement diversification strategy. On this basis, this paper analyzes the target industry, entry mode and organizational and personnel security to implement diversification strategy.This paper fills the gaps in research on diversification of small and medium-sized tourism enterprises, enriching the study on diversification, especially tourism diversification. It develops a diversification strategy for the future development of Xiamen Zhong-xing International Travel Agency, providing a reference for other tourism enterprises to develop diversification strategy.