TITLE:
A Study on Construction of Division System in China’s Travel Agency Industry
AUTHORS:
Yufeng Yong
KEYWORDS:
Travel Agency Industry, Division System, Barriers, Countermeasures
JOURNAL NAME:
Journal of Service Science and Management,
Vol.10 No.5,
October
31,
2017
ABSTRACT: The first travel agency in China, established in Shanghai Commercial Bank in
1923, had been oriented to administrative business up to early stage of the
reform and opening up and gradually shifted from a policy-oriented stage to a
market-oriented stage from 1978 to the present. It is fundamentally different
from overseas travel agency which spontaneously occurs in market. As market
economy is becoming perfect, improvement for division system in China’s
travel agency industry is extremely urgent. In this paper, division system in
China’s travel agency industry is studied to analyze its present state. After being
applied reasonably in the period of planned economy, horizontal division
system in China’s travel agency industry gradually became unreasonable due
to failure to cater to growth of market flexibly in a system of shift to market
economy: Economies of scale cannot be formed; conventional travel products
face multiple crises; and barrier to costs and risk of being imitated exist in
occurrence of new travel products. Vertical division system has numerous
advantages but multiple barriers in its construction. In this regard, major
countermeasures are proposed for construction of vertical division system in
China’s travel agency industry.