Shenzhen, May 8, 2015 /PRNewswire/ -- Tuniu International has recently successfully acquired Qingdao Zhongxiang International Air Service Co., Ltd. (hereinafter referred to as "Qingdao Zhongxiang"), officially expanding into the Shandong market. Established on January 16, 2004, Qingdao Zhongxiang ranks among the top players in Qingdao’s airline ticket agency market and has been awarded the title of Best Air Passenger Sales Unit in Shandong Province over the years. It boasts a professional and outstanding business travel service team, including dedicated customer service staff proficient in English and Korean. With its excellent service, the company has earned a solid reputation and prestige within the industry. Qingdao Zhongxiang provides business travel management services to hundreds of domestic and international enterprises, including China Railway Group Limited, AEON, and Busan Bank of Korea.
A relevant executive from Tuniu International stated that the management team of Qingdao Zhongxiang has a deep understanding of the industry and shares the same philosophy as Tuniu International, which was a key reason for choosing Qingdao Zhongxiang. Following a swift integration process, Tuniu International will gain access to local product resources through Qingdao Zhongxiang, further enriching its product portfolio. Additionally, Qingdao Zhongxiang’s on-the-ground service network—including an airport VIP lounge currently under planning—will provide ground services for Tuniu International’s nationwide branch clients visiting Qingdao as TMC customers, while also helping expand Tuniu International’s brand influence locally through direct marketing efforts.
After the acquisition, Tuniu International will inject its brand, IT systems, and products into Qingdao Zhongxiang, provide scientific management training, and enable it to offer more cross-location services to its clients. Leveraging Tuniu International’s nationwide product advantages and the added prestige of being associated with a publicly listed company, Qingdao Zhongxiang is expected to attract more TMC enterprise clients. Meanwhile, since Tuniu International began its grand tourism ecosystem strategy with the 2014 acquisition of Xinxin Travel, it has placed greater emphasis in its M&A strategy on targets with potential to transition from airline ticket agencies to full-service travel providers. In addition to its own strengths in airline ticket policies, Qingdao Zhongxiang will evolve into a more competitive comprehensive travel service provider by integrating Tuniu International’s tourism resources and financial products, thereby tapping into a broader market.
A relevant executive from Tuniu International stated that the company’s M&A plan this year will continue to focus on acquiring companies like Qingdao Zhongxiang that possess high-quality resources, in order to strengthen regional service capabilities, achieve O2O operations, and enhance customer loyalty. While actively advancing its national footprint, Tuniu International will also prioritize acquisitions in companies related to the broader tourism industry chain—such as hotel room inventory control centers—as well as innovative internet-related firms with traffic advantages. Tuniu International’s shift from business travel to the broader tourism sector represents an expansion from the billions-level air ticketing agency market to the trillions-level tourism market, rather than a reduction in business travel operations in favor of tourism. The integration of internet finance is key to Tuniu International’s differentiation strategy in the industry, with the ultimate goal of serving upstream and downstream players in the industry chain, delving into customer needs, providing targeted financial services, and broadening revenue streams. Anchored by the strategic focus on “Travel × Internet × Finance,” Tuniu International will lead the airline ticketing agency industry to expand its survival space, provide a model for transformation, and collectively step into the broader and more imaginative landscape of the grand tourism market.