This is one of the events put on by HYSTA – an entrepreneurial association in Silicon Valley. Standing in the audience, I couldn't help to be impressed. Just look at the following facts:
- China's travel industry is growing double digits every year and there is no sign of slowing down due to the emergence of the middle class.
- Ctrip aggregated more than 80 % of a fragmented market, which was typically characterized by mom-and-pop hotels, and handles a daily volume equal to the volume one travel agent does in a year.
- The company's revenue is growing at 50 % year to year, with a gross margin as high as 80 percent (whew, where on earth can you find a business like that?!).
Although Ctrip is a copycat of Expedia, it successfully adapted to China's situation and provides the services that are "China unique." For example, we already know about the call-center and free ticket delivery, but its "express service" is quite remarkable. In Beijing and Shanghai, because traffic is so bad and people cannot predict how soon they will get to the airport, Ctrip invented a service that allows people to call while riding their taxis to the airport, and issues the air ticket including boarding pass within one hour. Wall Street analysts said Ctrip is the only company in the world that is doing this.
Other things I have learned are: since 2006, GDP growth in the second-tier cities in China has surpassed that of first-tier cities. Recently, China relaxed visa restrictions for people to travel to the U.S. as tourists. It is predicted that by 2020, China will be the largest outbound travel country in the world. A minor point, it will certainly help the huge trade deficit between the United States and China.
A friend of mine told me that her sister, who works in IBM Beijing, travels every year, and each year to a new country. For the young Chinese middle class, travel to see the world is an essential component of their lives. Some consider it an important achievement in their lifetime. We will see the Chinese are coming.
recommend this
email
print
link to this page
Comments: 14
Though its very informative article to know about the global presence and reach out of Chinese people in tourism.
As an american citizen, I am not claiming to be holier-than-thou regarding climate change- because it is very painful for me to admit that the USA has totally refused to exercise leadership on the subject. The Chinese so far have a smaller per capita carbon footprint than we do. But if they manage to join us in the land of conspicuous and unsustainable overconsumption, I doubt that our planet can survive it.
Money is great, I love it personally. It's just that there is a downside to the Chinese economic miracle, both for the Chinese themselves and for the rest of us.
The Chinese government is investing $265 Billion in renewable energy by 2020. This will provide the equivalent of the 15% renewable porfolio standard that senate republicans blocked in this year's energy bill.
I hope the U.S. understands that solutions to global warming are profitable before the Chinese understand this. Either way, the Germans and Japanese are already onto this.