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Sky is the limit for company's travel business(3)

2014-11-24 11:29 China Daily Web Editor: Wang Fan
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Changes in the way airlines sell tickets have forced Zhan to change his business model, he says. That is because airlines used to sell their tickets to wholesalers much more cheaply, allowing them to maximize their profits, but the gap between the wholesale price and the retail price has shrunk.

"We charge for service fees, providing a whole package of travel plans to customers."

Zhan says his company makes travel plans for customers for an entire year and even provides online services that help customers manage their employees' travel.

The company is now keen to expand its tourism services, he says.

The purposes for which Chinese travel to Africa, which used to be largely confined to people doing business in areas such as infrastructure construction, has become a lot broader, he says.

As a holiday destination, Africa has become attractive to many more Chinese who see it as an exotic location.

China was the fourth-largest source country for travelers to South Africa last year, the South African Tourism Ministry says.

Zhan says he is considering opening branches in Africa that, in addition to selling flights and booking hotels, will offer rental cars and tours.

Tourism in Africa, particularly in the middle and high-end markets, will continue to become a greater lure for Chinese travelers, he says.

"The market is boundless, but it needs a lot more time to grow. It is promising not just for my company but for others, too."

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