The Research Of YJ Tourism Company's Financial Risk Precention

With the growth of national income and convenient of transportation, more and more citizens choose travel to relax and broaden their horizons, Compared to 2009 in 2015,Tourism revenues rose nearly 230%. At the same time, all kinds of tourism companies have developed rapidly, especially small and medium-sized tourism companies. According to the survey, the number of small and medium-sized tourism companies goes up with about 11.2% per year, and they contribute of nearly $1 trillion revenue to tourism industry in average. It shows that small and medium-sized tourism companies have become the main force of tourism. Small and medium-sized tourism companies develop well in all aspects, but their vitality is not strong. According to statistics, nearly 4.3% of small and medium-sized tourism companies exit the market due to business failures per year. Through amount of investigation and research, the article found that these small and medium-sized tourism companies with business failure have one common problem—the lack of financial risk prevention. Therefore, the financial risk is an important factor affecting the success of small and medium-sized tourism companies. It is significant for small and medium-sized tourism companies'developments to strengthen financial risk prevention.Based on the study of national and international experts'research literature, the article made YJ Travel Company as an object for analysis and found that YJ Travel Company result in business disruption because of the neglect of financial risks. The company's financial risks include:high debt, slow recovery of funds, too much account payable ratio, the management decision failure, too much unexpected expenses, less competitive and other issues. The reason is that YJ Travel Company financed in a single method, diversified investment blindly, loose credit policy, as well as financial officers lacked expertise and adaptability to changes, ignore the impact of the Internet and others. After learning from CYTS and the Spring International Travel, two large tour companies'financial risk prevention measures, the article summed up the experience of their financial risk prevention. The corresponding countermeasures to YJ Travel Company include:choose various funding financing methods, decide investments rationally, strengthen management of receivable, establishing good financial team, advance to prevent accidents, pay attention to the external environment. The article hope YJ Travel Company can solve problems and small and medium-sized tourism companies can learn from YJ Travel Company to find their solution and flourish.