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This is how Thomas Cook is selling holidays to a new kind of Chinese traveller | |
(about 9 hours later) | |
Thomas Cook has set its sights on the fastest-growing tourism market in the world, forming a joint venture to tap into China’s appetite for holidays at home and overseas. | Thomas Cook has set its sights on the fastest-growing tourism market in the world, forming a joint venture to tap into China’s appetite for holidays at home and overseas. |
The British travel operator and its Chinese partner, the diversified conglomerate Fosun, are putting £1.5m into the venture, which will be 51 per cent owned by Fosun. | The British travel operator and its Chinese partner, the diversified conglomerate Fosun, are putting £1.5m into the venture, which will be 51 per cent owned by Fosun. |
China’s domestic tourism has grown at more than 12 per cent a year since 2007. Inbound tourism to China was at 128 million visitors last year, up 10 per cent on 2013. | China’s domestic tourism has grown at more than 12 per cent a year since 2007. Inbound tourism to China was at 128 million visitors last year, up 10 per cent on 2013. |
Peter Fankhauser, Thomas Cook’s chief executive, said: “Today marks a significant milestone in our strategic partnership with Fosun. We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner.” | Peter Fankhauser, Thomas Cook’s chief executive, said: “Today marks a significant milestone in our strategic partnership with Fosun. We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner.” |
Chinese travel habits are changing, from predominantly sightseeing trips to all-inclusive resorts with lots of activities and day trips. | Chinese travel habits are changing, from predominantly sightseeing trips to all-inclusive resorts with lots of activities and day trips. |
Thomas Cook’s shares have been dragged lower in recent weeks amid a scandal over the deaths of two young children on a Thomas Cook holiday in Corfu in 2006. An inquest found that Thomas Cook had “breached its duty of care”. | Thomas Cook’s shares have been dragged lower in recent weeks amid a scandal over the deaths of two young children on a Thomas Cook holiday in Corfu in 2006. An inquest found that Thomas Cook had “breached its duty of care”. |
However, the shares firmed 0.8p to 139.7p on yesterday’s announcement, reflecting the spike back in March when Fosun bought a 5 per cent stake in the 174-year-old travel group, indicating that it was part of a wider strategic partnership. | However, the shares firmed 0.8p to 139.7p on yesterday’s announcement, reflecting the spike back in March when Fosun bought a 5 per cent stake in the 174-year-old travel group, indicating that it was part of a wider strategic partnership. |
Fosun, which was formed in 1992 as a market research company, has been moving aggressively into the travel sector. It recently acquired Club Med for €969m (£704m) after a long bidding war with the Italian billionaire Andrea Bonomi. | Fosun, which was formed in 1992 as a market research company, has been moving aggressively into the travel sector. It recently acquired Club Med for €969m (£704m) after a long bidding war with the Italian billionaire Andrea Bonomi. |
Qian Jiannong, the president of Fosun’s tourism and commercial group, said: “There is a lack of innovation and differentiation in the travel product offerings for Chinese tourists in China and abroad, presenting an excellent opportunity for our new joint venture to gain a competitive advantage.” | Qian Jiannong, the president of Fosun’s tourism and commercial group, said: “There is a lack of innovation and differentiation in the travel product offerings for Chinese tourists in China and abroad, presenting an excellent opportunity for our new joint venture to gain a competitive advantage.” |
The joint venture is expected to look at developing European resort-style hotels in China, as well as targeting the fast-growing outbound market for Chinese travellers. | The joint venture is expected to look at developing European resort-style hotels in China, as well as targeting the fast-growing outbound market for Chinese travellers. |
The venture will be headed by Reto Wilhelm, who is currently running Thomas Cook’s Europe businesses. | The venture will be headed by Reto Wilhelm, who is currently running Thomas Cook’s Europe businesses. |
China’s travel spending is projected to rise 16 per cent a year and to be worth 3.9 trillion renminbi (£404bn) by 2020. | China’s travel spending is projected to rise 16 per cent a year and to be worth 3.9 trillion renminbi (£404bn) by 2020. |
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