LY.com wholly acquires southern tour operator Guangzhou Chuanyou Travel
LY.com has recently acquired its third tour operator, Guangzhou Chuanyou Travel, in a little over two months as it tightens its hold on the southern China regional market.
ChinaTravelNews - LY.com has recently acquired its third tour operator, Guangzhou Chuanyou Travel, in a little over two months as it tightens its hold on the southern China regional market.
Guangzhou Chuanyou Travel is licensed to conduct domestic and outbound tours. Its main operations include MICE, corporate travel and cruise travel. After being acquired by LY.com, it will become a major part of the OTA’s southern China operations.
LY.com set up a southern China regional operational center about one month ago and appointed its vice president Pengyu He to personally take charge of the region. It also announced it will invest one billion RMB to cultivate the southern Chinese market. After a little over a month of operations, the scale of LY.com’s southern Chinese operations has already grown seven times, making it a major contender in terms of operational scale and growth rate.
Mr. He said: “Guangzhou Chuanyou Travel’s business scope complement ours perfectly. The smooth acquisition has set a solid foundation for us to further develop in southern China. We will continue to have mutually beneficial relationships with outstanding tour operators in the southern China and will cooperate closely to develop destinations while jointly expanding in the leisure travel market.”
LY.com has made it its strategic priority to set up regional hubs in China in 2016. So far it has already set up operational centers in the southern, northern, eastern, western, central and northeastern regions of China and has almost 30 city operational centers.
In terms of acquisition, it employs the “value + big data” two-pronged approach. In December 2015, it acquired Shanghai-based tour operator MCTS and set up a Shanghai operational center. In October 2015, it acquired Nantong Huihuang Travel and has smoothly integrated its operations to achieve three-fold growth in online and offline operations volume in Nantong Huihuang Travels area over the last two months.(Translation by David)