Comparative Study On Financial Analysis And Development Strategy Of CITS And UTS

China’s tourism industry has become one of the pillar industries of the national economy,but the changes of the external environment and the intensification of the industry competition have brought great challenges to the travel agencies.First,the external environment,such as mobile Internet,e-commerce,etc.,makes service and technology of tourism industry confront innovation and reform;in addition,common problems of low threshold within travel agency industry,serious product homogeneity,low price and vicious competition bring about higher requirements for financial analysis and the development strategy of travel agencies.At first,this paper uses the PEST and Porter’s Five Forces to outline the current tourism development environment and competitive characteristics of travel agencies,comparatively analyzes development strategies both sides on the basis of introducing basic situation of listed companies,namely CITS(China International Travel Servies)and UTS(U-tour Travel Servies).Then it conducts deep financial analysis and comparative research regarding the effect of strategic implementation of the two companies,including:three-dimensional analysis of financial statements,financial condition of the financial index and operating results,financial performance influence factors of Dupont Analysis,and the implementation analysis of the financial policy and financial strategy.Finally,it combines development strategy of the two companies to conduct overall evaluation of the strategic implementation and put forward corresponding development proposals.Through overall analysis of financial statements and strategic layout review towards CITS and UTS,this paper mainly comes to the following conclusion:strategy of CITS belongs to the high degree of diversification strategy,but its core competitiveness is not abundant in the market,the R&D and innovation of independent products are relatively weak,brand and channel construction advantages are not manifest enough,at the same time,it has big space in investment,mergers and acquisitions in the capital market.UTS strategy is a low degree of diversification strategy,compared with CITS,UTS can strengthen the regional sales channel construction,explore new products and potential market segment in the meantime,and reduce the operation risk of the company.