The Business Model Research Of Travel Agency Listed Companies Based On Competitiveness

As the promulgation of “Tourism Law of the People’s Republic of China” on April 25 th, 2013, new requirements of development have put forward to the travel agencies. However, it also gave a best chance for the industry to flourish. Travel agencies need to grow through transformation, integration and restructuring etc., continue to build the business model for their own development and enhance the competitiveness of enterprises to respond to changing economic and political environment. By the year of 2013, China had four travel agency listed companies which treat travel agency and related services as the main business, namely Beijing Capital Tourism Co., Ltd., China International Travel Service Co., Ltd., China CYTS Tours Holding Co., Ltd. and China Travel International Investment Hong Kong Ltd.. By analyzing these four companies’ business model, this study summarizes how these four companies survive in the fierce competitive environment. For travel agency listed companies improving their business model and enhancing the competitiveness, this study has practical significance. And it also provides advices on the management direction for the travel agencies who newly have become listed companies or desire be listed.Based on the theory of the business model and the operating characteristics of travel agency listed companies, combined with the Wei-Zhu six elements of business model, this paper constructs a business model research mode of travel agency listed companies based on the competitiveness. Select four travel agency listed companies’ data during 2010-2013 firstly, use the factor analysis method to evaluate competitiveness and name two common factors are “coordination with position and profit mode” factor and “liquidity” factor. Based on the evaluation results, the study has focused on a detailed analysis of each company’s business model features.Finally, for the future development of the travel agency listed companies, this paper presents recommendations from two perspectives. Based on the results of competitiveness evaluation, there are some specific recommendations on the four travel agency listed companies’ business model. BCT can expand hotel business through the output not the assets; CITS enhances the company’s profitability through opening up the outbound tourism market and enhancing business development capabilities; CYTS consolidates earnings model by expanding channels and innovate- ve integration etc.; CTS should constantly optimize the business structure on the premise of the implementation of enterprise development way. For travel agencies, especially who newly have become listed companies or desire be listed, the study puts forward business model development suggestions based on the competitiveness. It’s necessary to focus on the selection and implementation of position, combinations of profit mode, enterprise business systems and cash flow control, in order to continuously improve their level of competitiveness in the industry.