A Strategic Financial Analysis On CITS And CYTS

After more than 30 years of cultivation and development,China's tourism industry has entered a mass tourism era under the support and guidance of the government.It is changing from a single attraction tourism to a new global tourism mode with integration of the industry and the city,the coexistence of landscape and city,and the sharing of host and guest.In the new tourism situation,,although the scale of the traditional state-owned travel agency are growing,due to the lack of endogenous,tourism service industry have low gross interest rate.As the development of the Internet,online travel agency to Ctrip,Tour,QUNR as the representative with a new mode enter and quickly seize the tourism market,develop and expand causing the traditional travel agency enterprise enormous impact.And online travel agency through a series of optimization and integration,together at present,the competition pattern of the tourism industry is undergoing tremendous changes.This paper selects the traditional travel industry's two leading enterprises-China International Travel Service Limited(hereinafter referred to as CITS)And China CYTS Tours Holding Co.,Ltd.(hereinafter referred to as CYTS)as the research object,starting from the interpretation of CITS and CYTS financial statements reveal two companies operating results and financial position,further study of differences in the financial performance of the CITS,CYTS and Ctrip in different business mode,revealed in their business mode under the financial characteristics,summarize the implications on the strategic transformation from Ctrip.From a financial perspective further explore the fierce competition in the industry,how the traditional travel agency will face from the online travel agency impact,to achieve the transformation of enterprise strategy to upgrade in the face of the pressure of survival situation,and give forward related suggestions.This article is divided into nine chapters.The Chapter 1,Chapter 2 and Chapter 3,firstly introduces the theme and significance of this study,research methodology and framework;secondly,analysis and give a overview of the development history,status and development trend of China's tourism industry;thirdly,do a brief overview to the development process and the current situation of the two companies.The Chapter 4 and Chapter 5,firstly,through the interpretation of the two companies three financial reports,give a depth analysis from three dimensions.Secondly,a comparative analysis of the profitability,operating ability,Liabilities and Solvency,value creation ability,fully reveal the financial status and operating results of the two companies.The Chapter 6 and Chapter 7,by comparing the financial indicators of profitability,operating ability,Liabilities and Solvency,value creation ability of two companies and Ctrip,then futher give a decomposition analysis to CITS,CYTS and Ctrip's on profitability,value creation,risk control,growth and EVA mode,reveals the traditional travel agency industry and online travel agency in different business models under their respective financial characteristics.And discuss on the enlightenment of Ctrip business model to the strategic transformation of travel agency.The Chapter 8,based on the above financial analysis,makes an analysis and evaluation of the policy of CITS and CYTS on working capital,debt,dividends and other financial investment.The Chapter 9,comprehensive full text of the comparative analysis of the financial perspective of the two companies,give summary conclusions and put forward related suggestions with implications from Ctrip.Through the financial analysis and research of CITS and CYTS,the author found that their financial situation is showing an overall healthy development,from the financial point of view,CITS is better than CYTS no matter from profitability,growth,innovation ability,risk control ability and value creation ability.And Ctrip's profitability,creative ability and growth ability have shown strong advantages.Driven by the situation of the changing in the tourism market,the transformation and development of the travel agency is imperative in the face of the challenge and impact from the emerging enterprises.The traditional travel agency needs to change the traditional business model to cope with the change of the tourism environment in order to make great sustainable development.