Shenzhen, January 22, 2015 /PRNewswire/ -- Recently, business travel giant Temptour International (stock code: 300178) officially announced the acquisition of Hangzhou Pan-America Airlines International Travel Agency Co., Ltd. (hereinafter referred to as "Hangzhou Pan-America"). Hangzhou Pan-America ranks among the top in air ticket sales in Zhejiang Province and is one of the designated conference service providers for Alibaba. With this move, Temptour International has now established a presence in Shanghai, Nanjing, and Hangzhou in East China, largely completing its layout in the region.
The news that airlines have once again reduced agency commission rates is seen as a major blow to the air ticket agency industry, as the direct sales policies of airlines are squeezing the survival space of small and micro ticket agents. In response to this industry situation, Gu Min, General Manager of Hangzhou Pan-America, stated that this is the worst of times, but also the best of times. The industry is facing a reshuffle, where only the fittest will survive. Established in April 2001, Hangzhou Pan-America started with domestic group air ticket sales and has since grown into a mature enterprise with a team of 70 people and annual sales of 1 billion yuan. Facing industry changes, Hangzhou Pan-America has been well-prepared, keeping up with trends, expanding its business, and transforming and upgrading. With an internet mindset, it rapidly increased sales through e-commerce channels, actively developing diversified services such as leisure travel, conference services, and hotel distribution. It has now become a highly competitive comprehensive travel service provider in the region. The tourism market is vast and growing at an extremely fast pace. Hangzhou Pan-America is grateful for this era and for meeting Temptour International at this critical moment.
After the acquisition, Temptour International will inject capital, products, management, and branding to comprehensively enhance Hangzhou Pan-America’s offerings, business operations, marketing, and IT technology. Leveraging nationwide advantageous product policies and the brand effect of group operations, it will help Hangzhou Pan-America attract more corporate clients. Following the integration into Temptour International, Hangzhou Pan-America will focus on developing new businesses such as international air tickets, TMC (travel management companies), outbound tourism, and hotel distribution, consolidating its product resource advantages and expanding profitability.
The addition of Hangzhou Pan-America will complement Temptour International’s local air ticket strengths, further enriching its product line and extending the industrial chain. It also serves as a powerful tool for Temptour International to quickly enter the TMC (travel management company) and tourism markets in the Hangzhou area and increase its market share in East China. Last year, Temptour International acquired the air ticket trading platform Baqianyi and the online travel platform XinXin Travel. In implementing its acquisition strategy, it fully considered maximizing the value of industrial integration. First, Hangzhou Pan-America was already the largest supplier and purchaser in the Hangzhou market for Chengdu-based Baqianyi Air Ticket Trading Platform, and now that both companies are under the umbrella of Temptour International, they are certain to create even greater synergy. Second, in addition to Hangzhou Pan-America, Temptour International almost simultaneously acquired Chongqing Xinganxian Travel Agency. As more travel agencies successfully transition from air ticket agencies to comprehensive travel service providers join the group, Temptour International not only expands its travel business lines but also unlocks greater potential for realizing the value of XinXin Travel. Prioritizing shared business philosophies, Temptour International selects national targets aligned with its core and key business areas, achieving a high degree of integration of acquired resources. Temptour International’s strategic goal is to actively develop the tourism market, grow the industrial chain finance, and build a "grand tourism ecosystem." Through M&A integration, it aims to further leverage the unique advantages of its "tourism × internet × finance" business model, inject new momentum into its development, achieve its long-term strategic goal of constructing the "grand tourism ecosystem," and emerge as the true winner in the industry reshuffle.