Development Opportunities in the Online Travel Service Industry and Market Trends of Traditional Tourism

        Two months ago, I received an invitation from Comrade Li Hong, Director of the Hangzhou Tourism Commission, asking me to deliver a keynote speech at today’s conference. I readily agreed at the time—not only because he is my good friend, nor simply because his and his team’s highly efficient and outstanding work have made Hangzhou’s tourism an innovative model in the international industry, but also because this topic holds significant theoretical value and practical importance. In today’s era of mass, everyday, and independent travel, where the internet, mobile communication, and youth-driven entrepreneurship and innovation are causing traditional business models increasing anxiety, I stand here among my comrades and friends, filled with emotion.

         Business is rational. It is inadvisable to indulge excessively in the past, and relying solely on enthusiasm is not enough to achieve real results.We must, while summarizing historical experiences, firmly grasp the mainstream direction of consumer demand and commercial change, and transform the ideals of travel agencies into reality step by step through pragmatic innovation and rational perseverance.

        I am willing to explore together with you all, and to revisit the classic values of travel agencies.That is, to always provide safe assurance for people’s lifestyles away from home, offer efficiency in travel, and share quality experiences. As the saying goes, “At home, rely on your parents; when away, rely on your friends.” Why rely on friends? Because when you’re away from home, you always feel less secure—worried about personal safety, worried about being scammed or deceived. “From Nanjing to Beijing, the seller is always smarter than the buyer.” The flag of a travel agency should, and can, give those traveling abroad a sense of security, a feeling of quality, and even warmth. Whether it’s Mr. Thomas Cook, Mr. Chen Guangfu, or today’s Mr. Zhang Lijun, Mr. Feng Bin, as well as the many business leaders in the travel service field whom I haven’t mentioned one by one—their efforts have all been tireless pursuits of this very goal. As long as service quality can truly earn the sincere recognition of the vast majority of tourists, then all the anxieties of travel agencies will vanish. Whether it's group tours, independent travel, package tours, semi-package tours, single-item services, online, offline, O2O, B2B, B2C, or B2B2C—they are merely carriers, mere forms that express the classic value of travel agencies.

         I am willing to explore with you all how to apply modern science and technology, and modern business models, to the transformation process of traditional business models. Past honors must not be lost, fundamental values must not be discarded—but that doesn’t mean we should stick rigidly to the old ways. The U.S. Army’s 1st Cavalry Division still exists today, a historical legacy of glory from the cavalry era, which they deeply cherish. But that doesn’t stop them from replacing horses with airplanes, or flag signals with battlefield positioning systems. These modern tools—whether used by “youngsters” or “middle-aged folks”—are for everyone. Let’s talk about the military again. In the past, there were organizational structures like platoons, companies, battalions, and regiments. Today, we have army groups, and the way organizations operate is also changing. Even so-called new business models like Ctrip—Mr. James Liang has proposed breaking down large companies into smaller ones, advocating for “a second startup.” So why must we stubbornly cling to organizational methods like the Europe & America Department, Southeast Asia Department, or Citizen Department? The essence of a travel agency’s retail outlet is to reach end consumers. If mobile devices can serve this connecting role, why not use them? If post offices or neighborhood committees can also reach end consumers or even core groups like retirees and family travelers, why shouldn’t travel agencies tap into those too? Remember, any technology, experience, knowledge, or organizational method exists to meet people’s travel needs and to achieve specific business goals.

         I am willing to explore with you all how to move from classic travel services to broader travel services—that is the true blue ocean for travel agencies.When the tourism market has entered a new stage of independent and diversified travel, are OTA platforms naturally the dominant force behind entrepreneurship and innovation? They should also be what we strive to serve. Don’t keep fixating on traditional business models like package tours or shopping. Times have changed, the environment has changed. The Tourism Law has so many clauses—it is fundamentally a comprehensive piece of legislation encompassing development promotion, administrative oversight, and industry regulation. So why obsess over dissecting Article 35 word by word? As the ancients said, “It is better to forget each other in the rivers and lakes than to cling to each other in a dried-up ditch.” When the broad travel service needs of the general public are right before us, please don’t wait until the opportunity is gone before quoting that classic line from Stephen Chow in *A Chinese Odyssey*.

         I am willing to explore with you all how to engage in dialogue, exchange, and cooperation with our international peers on a broader scale.Travel knows no borders, and the flow of production factors is even more globalized. This year, outbound tourism will exceed 100 million trips, and by 2020, it will surpass 200 million. Although inbound tourism faces some temporary challenges, I believe nothing can stop the free movement of people around the world. Chinese enterprises and travel agencies should and can play a more important role in the global travel service industry landscape and in the worldwide development of tourism.

        Let us return to the classic values of travel services, and move forward with confidence and innovation for the future of China’s travel agency industry.

         Thank you all.

China Tourism Academy