On May 5th, news broke that Xinxin Travel Network’s supply and sales platform, Xinxin Lvtong, will collaborate with Alipay to roll out an industry financial security plan, creating the first-of-its-kind credit system in China’s tourism sector. The establishment of this mechanism aims to sustain offline transaction behaviors between suppliers and distributors, striving to resolve financial issues such as account receivables and bad debts among clients, and attempting to improve the long-standing channel chaos in the tourism industry.
Xinxin explained that what it values most is the accumulation of peer-to-peer credit within the tourism industry. “We’ve seen too many triangular debts in the industry, and witnessed too many peers traveling afar at year-end to chase payments. Therefore, in response to common issues like triangular debts and the approximately 30% bad debt rate among tourism peers, this initiative focuses on building a peer credit system where mutual evaluations serve as the basis for concluding transactions and distributing funds, providing financial and credit-guaranteed transactions to effectively protect the interests of both suppliers and distributors.”
A travel agency head participating in the Xinxin Lvtong supply and sales platform believes that the establishment of the Xinxin Lvtong peer credit system is beneficial in two ways: first, it helps create a fair, just, and transparent credit platform to alleviate the pressure of non-performing debts; second, as a distributor, through the Xinxin Lvtong peer credit system, one can obtain higher credit lines to ease cash flow pressures and facilitate business operations.
Currently, the Xinxin Lvtong supply and sales platform has attracted over 55,000 distributors, and the onboarding of first batch brand suppliers such as Wanda Global Travel Agency, Chongqing Xinganxian, and China Women’s Travel Service has been completed.
Industry insiders point out that with the arrival of the individual traveler era, the tourism market needs platforms like Xinxin Lvtong—B2B platforms—more than ever before, and more institutions will join the B2B arena. Facing the vast tourism market demand in China, their various business models, after being tested by the market, will all find their own space to thrive.