China's Travel Agencies Development Prospects

China's travel agency total revenue continues to fall

According to data from the Ministry of Culture and Tourism (MCT), the business situation of China's travel agency industry is not optimistic in 2020 and 2021 due to the impact of the epidemic, and the total revenue of the industry fell off a cliff in 2020, and in 2020 and 2021 fell by 66.36% and 22.28% respectively. the national travel agency business revenue in 2021 was 185.716 billion yuan, only 26% of that in 2019.

China's travel agency tourism business total profit loss narrowed

Total profit of China's travel agencies in 2020 and 2021 showed a large decline, from 3.21 billion yuan in 2019 to -6.915 billion yuan, and the loss in 2021, although narrowed. but still more than 5.3 billion yuan.

2021 China Travel Service domestic tourism business revenue growth of 22.06%

From the domestic tourism has business revenue, 2020 revenue fell to 119.449 billion yuan, a decline of 56.58% compared with 2019.2021 the epidemic has been some relief, coupled with the national promotional fee policy and other factors, the domestic tourism market has seen some recovery, and the domestic tourism revenue in 2021 increased by 22.06% compared with 2020, close to 150 billion yuan.

Chinese travel agencies' domestic tourism business operating profit continues to decline

Despite the rise in the revenue scale of China's domestic tourism market in 2021 compared to 2020, operating profit declined, with domestic tourism operating profit falling to -247 million dollars, down from 265 million dollars in 2020.

Chinese travel agencies outbound tourism revenue continued to decline

Since the epidemic, the outbound tourism business has been hit hard, and is now basically at a standstill. In terms of total outbound tourism revenue, it will be NT$16.391 billion and NT$660.3 million in 2020 and 2021, respectively, a year-on-year decline of 92.36% and 95.96%, respectively.

Note: China's situation tourism business has not been restored, part of the revenue of 663 million yuan in 2021 stems from the historical business of inbound and outbound groups have not been settled in a timely manner, and fill in the settlement in 2021. In addition, it includes the income from single commissioned services such as booking of international air tickets by travel agencies, visa agency, and transferring flights.

Chinese travel agencies posted a loss in operating profit from outbound tourism business

From the perspective of total profit from outbound tourism business, the national travel agencies posted an operating profit of -0.44 billion yuan from outbound tourism business in 2021, lower than that of 0.057 billion yuan in 2020, and much lower than that of 8.958 billion yuan in 2019.

In summary, in the past three years, the total revenue of China's travel agency industry has continued to decline, and the total profit loss in 2021 narrowed but still faced a loss of more than 5.3 billion yuan.In 2021, the domestic tourism business revenue rebounded, but the operating profit was a loss. Overseas travel business revenue and operating profit continued to decline, with a loss of $44 million in 2021. The industry as a whole is facing greater operating pressure.

-- The above data refer to the China Travel Agency Industry Development Outlook Forecast and Investment Strategy Planning Analysis Report

by Prospect Industry Research Institute.