Background
The China International Travel Service (CITS) is the largest travel service company in China. With over 29,000 staff members, over 3,200 offices and more than 3,700 outlets, the CITS is a global brand and the leader of the Chinese travel market. It is the official State-Owned Travel Agency of the Chinese government. CITS is also the most experienced Chinese tourism agency for international travelers. CITS operates throughout the world, providing a comprehensive range of travel services, including international and domestic travel, ground transportation, cruise ship travel, car/minivan rental, business-related international travel services, group tours, and other travel-related activities. CITS publishes an annual report highlighting its financial performance and key business metrics.
2020 Business Performance
As of the end of 2020, CITS had a total revenue of 36.1 billion yuan, a 7.1% year-on-year increase. It involved international travel, domestic travel, and other services respectively. Income from international travel contracted 17.1%, while domestic travel grew 27.7%, reflecting the significant impact of the pandemic on international travel industry. The strong performance of the overall business has been driven by a doubling of the total number of passengers served in domestic travel, which increased from 44.7 million in 2019 to 91.2 million in 2020.
Cost Control
In order to ensure the sustainable development of the company, CITS has made great efforts to control costs. In 2020, total expenses of CITS decreased from 34.3 billion to 33.4 billion yuan, a decrease of 2.5%. It is mainly due to a decrease in operating expenses as a result of cooperation with various regions and reduction in agents’ commission. These cost control measures have helped to maintain and stabilize CITS’ profitability.
Outlook
The CITS expects 2021 to be a pivotal year for the company’s success. CITS aims to further strengthen its market position through aggressive expansion of its travel services and products. Through investment in digitalization and automation, as well as by leveraging its extensive network of travel professionals, the CITS is expecting positive results from its strategic initiatives.
Customer Service Innovation
In order to capture market share within the continually changing Chinese travel landscape, CITS has implemented a bold customer service innovation programme. These innovations have focused on digital advances, such as utilizing big data for personalized services to customers, and providing a more integrated travel experience. The company is also committed to reducing customer service costs, through the use of technology and automation, while also providing top class customer experience.
Partnerships
During the year, CITS has continued to strengthen its ties with other leading international service providers. These partnerships are crucial for the company to remain competitive in an ever-changing landscape. In 2020, CITS signed agreements with leading hotel chains, airlines, and international travel service providers such as the US-based Global Travel Network. By taking advantage of these strategic partnerships, CITS has been able to offer customers more choices and better deals.
Research & Development (R&D)
In order to stay ahead of the curve, CITS has encouraged its staff to undertake research and development programs. Through this process, CITS has employed experts from all fields of the travel industry, from travelers’ rights and safety to destination marketing. By combining its knowledge and resources with those from its partners and other stakeholders, CITS is able to provide customers with the best possible experiences.
Investment in the Future
As the Chinese travel industry evolves, CITS is actively investing in the future, continuing to expand and build its infrastructure. The company has opened over 200 new outlets, developed new online booking systems, and introduced new travel routes and tours that include exciting destinations in China and abroad. CITS is also investing in the growth of its international presence, and recently opened offices in North America and Europe.
Branding & Promotion
CITS has aggressively promoted its brand to consumers and travel professionals alike. Through its presence on several online and offline channels, such as its website and social media accounts, CITS is communicating the values and superior product offerings it provides. The company has also developed campaigns and activities to create brand awareness and loyalty. This includes producing product videos, organising educational seminars, and participating in trade fairs and tourism events.
Technology Update
Today, the CITS has invested in robust, cutting-edge technology that is enabling the company to remain competitive in the ever-changing travel industry. Through this technology, CITS is able to offer customers an enhanced user experience, improved booking and management systems, and better online customer support. By utilizing AI, customer data analysis, and machine learning technology, CITS is able to better engage with customers and provide a more personalized experience.
Sustainability
CITS is committed to sustainable tourism and has been implementing measures to reduce its environmental impact. As such, CITS has increased its use of renewable energy sources, developed eco-friendly transport options, and reduced its carbon footprint. CITS is also engaging in social projects to support local communities, with focus on poverty alleviation, environmental protection, and educational development.
Digital Disruption
The economic impact of the COVID-19 pandemic has been felt by the entire world, but particularly by the travel and hospitality industry. CITS has responded swiftly to the challenges posed by this digital disruption and is now in the process of developing a digital strategy that focuses on enhancing its online and mobile capabilities. By leveraging technology, the CITS aims to create a more seamless online customer experience and strengthen its efforts to promote technology-driven business operations and increased customer loyalty.
New Markets Opportunities
The rise of the middle class has led to an increase in new market opportunities for the travel industry in China. Through various market studies, CITS has identified new trends in the Chinese outbound tourism market and is using this data to create high-value offerings to customers in these markets. CITS has also developed a comprehensive strategy that incorporates digital marketing and other promotional activities to target travelers in key markets around the world.
Security and Safety
The safety and security of travelers has become a top priority for service providers within the travel and hospitality industry. CITS is investing heavily in security and safety protocols ensure the safety of travelers. This includes the implementation of advanced data encryption technologies, cloud-based solutions, and AI-driven fraud prevention capabilities. By combining these innovative solutions, the CITS is providing customers with a secure and secure travel experience.
