Tempus Global acquires leading Chongqing travel company
Tempus Global will inject RMB55 million capital in subsidiary Chongqing Tempus Air Service to acquire 60% holding in Chongqing Xinganxian Travel.
ChinaTravelNews – Ticketing and travel management service Tempus Global (Chinese: Feiren.com) announced on January 5 it will inject RMB55 million capital in its wholly-owned subsidiary Chongqing Tempus Air Service to acquire 60% holding in Chongqing Xinganxian Travel and boost the latter’s capital.
Xinganxian Travel has two subsidiaries – Lianfeng Air Service, the largest regional air ticketing agent with RMB2 billion annual turnover, and Fengxing Tianxia Travel, Chongqing’s largest regional integrated travel service with established distribution channels and a diverse product line. This acquisition will allow Xinganxian Travel to leverage Tempus Global’s nationwide distribution and enhance its profitability and diversification.
The acquisition will in turn deliver three main advantages for Tempus Global.
1. Enhanced product supply system and profitability
Xinganxian Travel is not only a leader in air ticket products in southwest China but is also well-established in the travel industry with a wide array of products and attraction resources. The tie-up can not only boosts Tempus Global’s competiveness in ticketing but also increases its share of the southwest regional market and expands its product line. Tempus Global’s B2B operation as well as its travel management company (TMC) and OTA will also benefit with cost benefits in product procurement that will ultimately contribute to its profitability and valuation.
2. The creation of a “greater travel industry ecosystem”
This acquisition will bring together Xinganxian Travel, Cncn and Tempus Global, with Cncn as a platform and Xinganxian Travel as its main supplier group for Tempus Global. A reliable alliance can enhance Tempus Global’s strategic market distribution and travel product development to effectively open new markets.
3. A model for transformation and upgrading
Xinganxian Travel is the first company in China’s travel industry to successfully transition from the ticketing sector to travel service. Tempus Global can apply this transformation model and replicate it in its subsidiaries to achieve diversification.
The acquisition of Xinganxian Travel will enable Tempus Global to consolidate its distribution in west China (including Sichuan, Chongqing, Shaanxi and Xinjiang), the focal region of the government’s New Silk Road economic development plan that will offer the group a launch pad for future globalization.(Translation by David)