BEIJING, July 29, 2011 /PRNewswire-Asia/ -- "Our 2011 sales target is set to be RMB 10 billion. To achieve this target, we must accelerate business globalization - through our website we need to attract more international tourists to access tourism services in China, as well as providing Chinese tourists with more appealing international tourism products," said Mr. Ted Sze, CEO and founder of www.travelzen.com, at an interview on the sidelines of the 25th ITE & MICE in Hong Kong.
Aiming to provide "complete online travel services", www.travelzen.com was launched in 2007, becoming the first online travel website in China to provide completely net-price, online-shopping, 24-hour global and comprehensive services for worldwide individual, group and business travelers. According to industry insiders, the "comprehensive online" model is in line with the development trend in the international travel e-commerce industry. The rise of www.travelzen.com will pose a challenge to CTRP and eLong which now have over 60% of the market share in China. It is likely to put an end to traditional online travel websites which rely on the "mouse + telephone" model.
Online Tourism Coveted by Capital
On May 17, Tencent announced its intention to buy shares in eLong with US$84.4 million, becoming the second largest eLong shareholder. On June 24, Baidu injected US$306 million into www.qunar.com to become the largest shareholder of that online tourism website. Before these acquisitions, www.tuniu.com raised US$50 million, lvyou.baidu.com was launched, and Expedia acquired www.kuxun.cn. 2011 marks a year in which investors are rushing to make capital injections into the online tourism sector.
In this context, www.travelzen.com is fully geared for growth and competition. It is very confident of its positioning, marketing, systems and resource allocations. "This year, we will focus on marketing and will invest at least RMB 100 million in it. In addition, we will accelerate our global presence. Currently, we provide a ticket booking service for flights to Australia and Singapore, and will add Europe and U.S. by the end of this year," said Mr. Sze. This shows that the forthcoming third investment will add a final touch to the website's preparation for its overseas listing.
Doing "Real" E-commerce
According to statistics of the Engroup.com, the proportion of phone travel service bookings in China's travel market dropped from 64% in 2007 to 55% in 2010. Meanwhile, the proportion of online bookings rose from 36% to 43%. It is safe to say that online travel services are becoming increasingly popular.
"The main reason for this is that the business model is based on the fact that Chinese consumers haven't yet formed the habit of large-scale online consumption. For call centers, hotel rooms are mainly booked by phone, and payment is made at the front desk. Air tickets are mainly booked by phone, and payment is made on delivery. Therefore, real e-commerce has not yet taken over in the online travel booking business in China," said Mr. Sze as he analyzed the situation that call centers still contribute over 70% of the traditional business of online service providers in China. "Most costs and expenditures of such traditional online travel service providers go to call centers. For instance, the call center of CTRP has over 7,000 employees," he said.
"The individualized service model in the traditional online travel service is undoubtedly transient and in a transition period. It will eventually be replaced, just as the beeper was replaced by the mobile phone, and the paper ticket replaced by e-ticketing. As people's online consumption habits mature, online travel services will become completely online and fully electronic. This is also the essence of e-commerce," said Mr. Sze. It is based on this foresight that www.travelzen.com positions itself to be the most comprehensive internet-based travel service provider.
Comprehensive Online Operation together with Globalization will Sustain the RMB10 Billion Sales Target
"Online booking is the ultimate goal of the online travel service sector, and also the initial goal of e-commerce. Our RMB10 billon sales target for 2011 must be supported by complete online operation and globalization. Online operation can help us streamline workflow and lower our costs, while globalization can help us integrate the market and increase market share," noted Mr. Sze.
www.travelzen.com will spend RMB100 million in marketing campaigns that aim at the high-end business traveler, especially those from Europe and the U.S. who often travel to China. Currently, www.travelzen.com is sponsoring many international competitions and events including the 2011 Miss Universe Contest, and participating in the 25th ITE & MICE in Hong Kong in a bid to attract more high-end business travelers. The top priority of the website this year is to attract as many international tourists as possible.
About Travelzen.com
China's most advanced travel agency
We pioneered fully online travel booking in China. Now, as the most advanced online travel agency serving travelers both inbound to, and outbound from China, Travelzen uniquely empowers its users to select and book a full range of domestic and international flights, hotels, events and packages online: easily, quickly, and without any of the hassles associated with other booking methods.
Unlike its competitors, Travelzen's advanced booking system delivers real-time availability, 100% real prices, and instant booking confirmation. When using Travelzen, travelers enjoy greater freedom and flexibility to create and personalize their travel experience than with any other travel agency online.
Travelzen has redefined the marketplace, and offers a genuine one-stop online travel service, letting travelers experience a new era of online travel.
