Exclusive interview with the CFO of Tuniu – instrumental in package tour growth
Founded in 2006, today, Tuniu has become the number one player in China’s online leisure travel market. In this exclusive interview, we rst asked Conor Yang, Chief Financial Officer of Tuniu Corporation, how the Chinese outbound tourism is evolving…
The Chinese outbound market has grown rapidly in the recent years. We expect the market to maintain its fast growth in the near future mainly due to a few reasons. First, the consumption power here in China as measured on a GDP per capita basis has reached a critical point. Chinese people now have enough disposable income to spend on new experiences such as travelling abroad. Secondly, the application process for a visa to a foreign country is becoming easier for Chinese citizens. This allows more Chinese people to have the ability to visit new countries where previous restrictions limited them. When you combine these two factors, we can expect the growth momentum of Chinese outbound tourism to remain very strong.
How is luxury travel developing for Chinese tourists?
Although luxury travel remains in a developmental phase here in China, it is growing at an accelerating pace. This is due to the fact that China has one of the largest populations of high-net-worth individuals in the world and one of the most favourable environments for luxury travel. If you couple the Chinese demographic with the increasing crave for a luxury experience, you’ll get a very fast growing market for luxury travel in China.
ALTHOUGH LUXURY TRAVEL REMAINS IN A DEVELOPMENTAL PHASE HERE IN CHINA, IT IS GROWING AT AN ACCELERATING PACE
How could you best describe Tuniu’s mid-term roadmap?
Given our established position in packaged tours, we will put increased emphasis in self-guided tours. To do
that, we will strengthen our offerings in air ticketing and hotel booking while also expanding our coverage of destination-based products. We are con dent that we can leverage our experience in packaged tour and understanding of Chinese travellers to rapidly strengthen our presence in self-guided tours, and to continue increasing our market share in China’s attractive online leisure travel market.