Outbound travel is becoming a major factor affecting the development of travel agencies and high-end tourism markets. For travel agencies, there are two types of competition that are key to value chain integration according to a recent McKinsey report. This article also shares information on outbound tourism opportunities for the travel retail and hotel industries.
Baidu, Alibaba, Tencent (BAT) and Ctrip have developed online channels, which take up most of the traveler source, and the rest are divided by small OTAs or traditional physical retailers.
Small institutions have insufficient resources to invest in large-scale online distribution or online customer acquisition. Therefore, BAT and Ctrip have monopolized the online retail market through digital expansion and have taken away most of the customers.
Product-based competition has four types of participants (large traditional institutions, small emerging...
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