China's travel agency group development strategy

Currently China's travel agency grouping development mode to discuss (a) Experienced the reform and opening up since the development of China's travel agency for nearly two decades, whether in the industry scale, quantity, reception quality, or as the leading position of the tourism industry to establish, there has been great progress. Especially in the late eighties, to the China Travel Service, China Travel Service, Youth Travel Service as the representative of the travel agency group was established one after another, to the asset relationship as a link, to the business network as the core, to the efficient and orderly collection, processing and transmission of information as a channel, to the group of the unified image as a logo, basically established China's three major travel agencies in the international and domestic position; after that, Kanghui, China Merchants Travel Service and Shanghai Spring and Autumn, China Railway Tourism Group Group process have made substantial progress. It can be said that this network operation and group development for China's travel agencies to internationalization and diversification has laid a good foundation. The formation of a standardized travel agency group with asset ties and seeking the advantages of unity in the same industry is determined by the characteristics of the travel agency industry and the development trend of the international and domestic market economy. First of all, the tourism industry itself is cross-regional, the integration of a variety of elements in one of the service industry, travel agencies have a strong dependence and vulnerability, which requires the realization of cross-regional group and network. By the core business and group members to form a strong collective promotional capacity, information *** enjoy, service standardization, put the group in a criss-crossed network to carry out economic activities, in order to ensure the improvement of service quality and the realization of economies of scale. Secondly, along with the deep development of China's market economy and the return of Hong Kong in 1997, China's accession to the WTO as a whole will eventually become a reality; in order to realize the series of commitments to the trade in services, China's tourism market to open up to the world, the foreign travel industry will be in the domestic group is not yet firmly based on the time to seize the market share, some of the foreign partners will be a competitor, if there is no strong strength of the organization of groups -If there is no travel agency group with strong tour organizing ability and national network to fight against it, the result may be the complete loss of the domestic travel agency market. Thirdly, group development is also a necessary way to seek transnational union and internationalization. The internationalization of travel agencies has two meanings: one is that travel agencies are not only satisfied with the pure international reception business, but also need to develop the source market of the host country through the stationing of foreign subsidiaries or offices, in order to fundamentally solve the problem of unstable sources of customers; the second is that with the growth of the domestic tourism demand market, the outbound tourism will be more and more prosperous, which requires domestic travel agency groups from the reception operation type to the organization of group operation type transformation. This requires domestic travel agency groups to transform from reception operation to group operation. Obviously, without a large travel agency group with strong strength and good reputation at home and abroad, the goal of internationalization is difficult to realize. Fourthly, as a new trend of international tourism in the 21st century, the requirements of travel agencies are getting higher and higher, which not only require flexible travel routes and product combinations, but also reasonable time arrangements, diversified services and a wide variety of recommended programs, and the realization of this demand shall be built on a convenient and unified national tourism network. It can be seen that the formation of a standardized travel agency group has important practical and long-term significance. It should be noted that at present, China's travel agency group is not standardized. With the national requirements on the group is far from the main performance: most of the group there are structural defects, internal management and standardized parent-subsidiary system there is still a gap between the members of the group is not closely linked to the lack of assets between the members - the relationship between interests. There is no formation of interest **** the same body of the foundation and asset bond relationship, the cooperation mechanism is not solid; the total society is not total, the branch is not divided; group core enterprise investment subject position is difficult to play, the core enterprise does not have strong economic strength, lack of appeal and products, capital and other advantages, the members of the enterprise is not binding, can not become a financing center, credit center, clearinghouse; the state of the travel agency grouping the lack of effective Regulatory means and so on. This shows that China's current travel agency group 4R to be standardized. (ii) from the travel agency group development practice, its internal generally exists in three organizational forms, namely, in order to achieve the integration of assets, business integration of the close union, to the asset relationship as a link (joint venture, equity participation, etc.) of the semi-tight union, and to the agreement, collaboration relationship as a link to the loose union. At present, China's travel agency group joint way to loose relationship. As the enterprise group is a market economy, the senior form of enterprise organization and the inevitable product of the market allocation of resources. This loose for the main body of the joint form, although in the tourism source market resources **** enjoy a certain significance. But because the group has no property rights within the bond relationship. Difficult to form interest *** with the body and often make travel agency group become famous, set but not group, did not produce the corresponding group benefits and economies of scale, so the formation of a close contact with the main, semi-closely linked to the arrest of the group model is the direction of the development of China's travel agency enterprises, specifically for the establishment of a standardized parent-subsidiary system. The so-called "parent-subsidiary" system, refers to the enterprise legal person holding as the main feature, there is a strong, with the investment center function of the group core (parent company) and a certain number of, and the parent company has an asset linkage of the controlling or wholly-owned subsidiaries and shareholding in the operation of the subsidiaries **** with the composition of the parent-subsidiary company between both Existence of "assets - interests" relationship between parent and subsidiary companies, but also to have the inherent production, business links, *** with the same strategic objectives and relatively consistent product target markets. In accordance with the principle of the standardized mother-son system to form a travel agency group, the group should generally have a four-tier structure, namely, the core layer, backbone layer (tight layer), supporting layer (semi-tight layer) and collaboration layer (loose layer). The core enterprise occupies the highest level of the group's internal structure, is the key to the group's development, growth and cohesion. The core enterprise of the travel agency group should have the following conditions: first, there should be strong economic strength and strong capital, talent, management basis; second, it occupies the market share that market share in the peer has a pivotal position; third, at home and abroad to enjoy a high degree of visibility and a good reputation; fourth, with the strength of multi-corner operation, especially the management of high-star hotels, the ability of the core; fifth, the Fifth, the core enterprise must be entity-type, avoiding the transformation of the administrative licensing company into a group. As a result, travel agencies with the conditions of core enterprises of the group are generally large enterprises under national ownership or national holding companies. For example, the three major travel agencies of China, China and China Youth Travel Service. Backbone layer enterprises by the group's investment enterprises - wholly owned subsidiaries and holding subsidiaries, although these enterprises still have legal personality, economic independent accounting, self-financing, but because the enterprise group has a certain degree of ownership of assets and has a dominant position in the right to manage the business, close layer of business activities are basically controlled by the group, the basic function is the parent company under the leadership of the group, the basic function is the parent company under the leadership of the group. Its basic function is to operate independently under the leadership of the parent company in accordance with the law and assume the responsibility of preserving and increasing the value of state-owned assets. The supporting layer is the semi-compact layer of the group, which is the associated company linked by the travel agency group through shareholding, equity participation and other capital association, and is the basis of the internal structure of the travel agency grouping, and is mainly established by the parent company in joint venture with the local tourism bureau or enterprises with strength in the tourism industry. Through the business relationship and part of the property right relationship as a link with the parent company relationship, but the parent company is not in a dominant position on their management rights. The fourth level is the collaboration layer, they are recognized by the group constitution and have a strong and stable collaboration relationship between the affiliated companies, the group does not have ownership of the assets of these enterprises, but only in the reception of the team and other aspects of the existence of business contacts, this part of the enterprise is equivalent to the parent company designated to receive the task of the Agency's local travel agencies, the parent company for its loose management (business guidance), and have to allow or cancel its The parent company has loose management (business guidance) over them, and has the power to allow or cancel their use of the parent company's brand, and the loose layer of enterprises turn over the parent company's profits in accordance with the contract and contract. (c) Based on the experience of implementing the grouping process of China's travel agencies in recent years, we believe that it is most effective to adopt the formation of market forces, combined with a certain degree of administrative force, based on the general principles of voluntariness, equality, mutual benefit, encouragement of competition and combination of stable unity, as well as the overall requirements of conformity with national industrial policy, adherence to fair competition, and prohibition of monopoly in the industry and of regional blockades. The current grouping standardization measures are still focused on strengthening the function of the core enterprise and establishing a solid close layer of enterprise links. Travel agency group core layer can be directly transformed through the head office or the head office as the basis for the re-establishment of the parent company for the construction of the way, but are to take a series of measures to strengthen the parent company's management, coordination, planning, supervision and service functions. It should really form the status of financing, credit, settlement and investment center, and give play to its leading and parent functions. In accordance with this requirement, the head office should be transformed into a diversified shareholder, establish a standardized corporate governance structure, adjust the structure of assets and liabilities, and reform the personnel, labor and distribution system. Separate surplus personnel. Improve the education and training system, and if conditions permit, issue shares and list them for trading when conditions are ripe, etc. The construction of close layer is one of the key contents of the work of grouping. Core enterprises should formulate a series of preferential policies to ensure that enterprises joining the close layer enjoy benefits. To join the ranks of enterprises in the close layer of the group, there are generally the following kinds of programs: First, through the transfer of assets. Authorized by the State-owned Assets Administration to transfer the local travel agency to the core enterprise management; Secondly, through the core enterprise to the local, industry travel agency for tangible and intangible assets, so as to achieve the controlling standard; Thirdly, to take the way of paid merger will be the local travel agency to the core enterprise; Fourthly, the core enterprise to legal person status of the long-term contract or lease of the local travel agency; Fifthly, by the core enterprise direct investment in the Enterprises directly invested by the core enterprise is inevitably close layer; sixth, for has realized a variety of business, large-scale local travel agencies, can take only the travel agency part of the state-owned assets transfer approach to join the close layer. If the above programs do not meet the requirements of the holding, it can be included in the ranks of the semi-tight layer, enjoy certain preferential policies. The establishment of the group should maintain a certain scale, the scale is too small to reach a reasonable economic scale, it is difficult to produce economies of scale, the scale is too large, beyond the ability to control the core business will increase the "organizational costs" and "friction costs", resulting in "dinosaur disease". "Dinosaur disease" and make the enterprise malfunction. In addition, the scale structure should be as reasonable as possible, and the number of enterprises at each level should maintain a certain proportion, but overall should be in the shape of a pyramid. Enterprises at the compact level should focus on setting up in coastal open cities and inland key tourist cities. (d) The implementation of shareholding reform may be the most effective form of organization for travel agency enterprise groups established in accordance with the standardized parent-subsidiary Mu system. It is of great significance for the establishment of a modern enterprise system with clear property rights, clear rights and responsibilities, separation of government and enterprises, scientific management, optimization of capital and resource allocation, standardization of the behavior of the group and its members, and enhancement of the group's vitality. According to the domestic and foreign enterprise group shareholding system implementation experience, China's travel agency group can take the following organization and management mode: 1, "a division of three systems, public-based" form of ownership of the means of production. The so-called "one division", refers to the travel agency group company, "three systems" refers to the state-owned assets into the state ownership system, to the enterprise members of their own funds eight shares of collective ownership system, to the individual employees into the individual ownership system; of which, the state ownership system dominates the capital structure. The dominant capital structure, the core enterprises (such as the China National Travel Service) can be directly reorganized into a wholly state-owned company, while the collective and individual shareholding as a complement to diversify the property rights of the group's wholly owned or holding subsidiaries, so that the enterprise staff earnings directly linked to the fate of the company, to stimulate their love of work, dedication, love of the Division's entrepreneurial spirit. For the company does not have to set up a general meeting of shareholders, the internal staff shareholding association can be set up to manage the staff's equity on behalf of the company. 2, set up a pragmatic and effective corporate governance structure. According to the Company Law, within the travel agency group companies set up the Board of Directors, Supervisory Board, by the investment subject (generally for the higher authorities of the property rights of the operating agency or authorization to operate the unit) to appoint the chairman of the board of directors and vice-chairman and directors, and the appointment of supervisors, and then the Board of Directors appointed by the president of the company. Generally, the chairman of the board of directors also serves as the president. When conditions are ripe for the company's internal organization, the business units of the head office should be reorganized into divisions or subsidiaries. By strengthening the second level of accounting functions, so that the cost center into a profit center; will be close to the reorganization of the enterprise for property rights diversification of the norms of the joint-stock enterprises; group company headquarters should be strengthened to strengthen the integrated management function, so that it is from the production-oriented to the capital management mode change. 3、"One industry as the main, multi-corner operation" of the core business strategy. The so-called "one industry" refers to the main business as a travel agency enterprise for travelers to provide product sales intermediary, it is the core of the travel agency group's business strategy. The so-called "multi-corner operation" means that it chooses the travel industry or other industries as its own development field in order to reduce business risks and improve market adaptability. Generally speaking, at the beginning and middle of the group's establishment, the focus of polygonal operation should be placed on the internal travel industry or related industries (such as the hotel industry, ticketing agency, entertainment industry, etc.), with the connotative development as the main focus, supplemented by the external extension. In order to prevent the dispersion of funds and improve the investment recovery rate and rate of return, the head office should formulate the polygonal operation fields, product directions and target markets at different stages of development at the macro level. At the same time, the polygonal operation of the close layer of enterprises to implement macro-control, micro-activation, fully mobilize the enthusiasm and creativity of the staff.