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While Tongcheng Travel waits for China to ease restrictions and open up travel, the online travel company has used the downtime to diversify its customer base. This may interest you : CORRECTION — Armstrong Flooring Announces Successful Offer for North American Company and Binding Offers to Acquire Chinese and Australian Companies. Now if only the borders would be completely reopened!
“Catch ’em young” seems to be the mantra for Tongcheng Travel, as the Chinese online travel agency steadily ramps up efforts to increase its brand influence among the younger generations through various marketing campaigns.
In late April 2020, Tongcheng Travel, formerly known as Tongcheng-Elong, launched a new brand name — ly.com and a new logo aimed at better serving users with a younger mindset.
“In the last quarter, we launched campaigns to help connect with Generation Z. The company wants to build itself as a unique travel platform that understands and connects with younger users,” said Heping Ma, CEO and CEO of Tongcheng during the earnings call earlier this week for the quarter ended June 30.
Tongcheng, which is publicly listed in Hong Kong, is also working closely with WeChat’s parent company – Tencent – to acquire young users and has joined the Jiangsu Provincial Tourism Bureau to jointly launch marketing activities aimed at students.
The group has also expanded its geographic footprint across the country by focusing on lower-tier cities and further optimizing operations in those cities, with approximately 87 percent of registered users from non-tier cities, the company said.
“We have moved to capture the recovery opportunities driven by demand for short and local travel, especially in lower-tier cities, which have recovered more quickly,” Ma said.
During the last quarter, Tongcheng’s accommodation business performed better than expected, even as China’s tourism industry faced drastic travel restrictions as a result of the government’s strict zero-Covid policy.
The group maintained profitability in the second quarter, registering total revenue of $192 million, a decrease of 38 percent compared to the same period in 2021. The company also reported adjusted net income of $16 million, down 73 percent year-over-year. on-year.
“Tongcheng’s offline user acquisition initiatives also continue to play a key role in acquiring new users while facilitating its strategy to further penetrate lower-tier cities,” the executive said.
The travel company continued to make progress with its offline customer acquisition initiatives with an increased emphasis on efficiency, customer value and product recognition.
By integrating online and offline channels to diversify traffic sources, Tongcheng believes it has optimized its application interface and enriched tourism-related content to provide users with products and services in one place. The company also worked with location-based apps to expand customer acquisition channels.
“Tongcheng Travel has continued to develop and apply innovative technology to transform itself from an online travel agency to an intelligent travel assistant,” said Joyce Li, Tongcheng’s vice president and head of capital markets.
He believes that the business of selling bus tickets is an effective instrument for the company to increase its customer base. “We had multiple urban and rural bus operators working together and further penetrating underutilized countries and cities,” Ma said.
While market growth is expected to be driven by local and short leisure trips, as well as an increase in business travel, the travel company will continue to tap into underpenetrated regions to further increase its market share, executives said during the earnings call.
“Building on our solid foothold in the market, we are confident about the industry’s prospects and the company’s development prospects,” said Ma.
The most important causes of globalization differ among the three main components of international market integration: trade, multinational production, and international finance.
What are the 5 main types of globalization?
What are the 5 important types of globalization? Read also : 2022 ITOE – Home Life Expo Opens, Provides Powerful Inspiration for Digital Business Development..
- Economic globalization.
- Social Globalization.
- Cultural globalization.
- Political globalization.
- Globalization of the environment.
What are the 5 definitions of globalization? In geography, globalization is defined as a set of processes (economic, social, cultural, technological, institutional) that contribute to relationships between societies and individuals around the world. It is a progressive process that intensifies exchanges and flows between different parts of the world.
What are the examples of globalization?
Free trade agreements such as the North American Free Trade Agreement and the Trans-Pacific Partnership are examples of economic globalization. On the same subject : Brooklyn businessman pleads guilty to tax evasion. Multinational corporations, which operate in two or more countries, play a major role in economic globalization.
What is the best example of globalization? Good examples of cultural globalization are, for example, trade in goods such as coffee or avocados. Coffee originates from Ethiopia and is consumed in the Arab region. However, due to commercial trade after the 11th century, it is known today as a commodity for global consumption.
What are the 8 example of globalization?
There are 8 types of globalization: Economic globalization. Political globalization. Cultural globalization. Ecological globalization.
What is globalization and examples of globalization?
Globalization is growth on a worldwide scale. It is a process of integration and international influence of economies and cultures. In the examples of globalization below, you will see that it is not only the exchange of goods, but also the exchange of ideas and even anti-terrorist protection.
What are the five characteristics of globalization?
Characteristics of Globalization Its essential characteristics include cross-border connectivity or integration, a free trade environment, and the interdependence of nations. In addition, it facilitates global business expansion, cross-cultural diversification, lower tariffs and taxes on international business. read more.
What are the 4 characteristics of globalization? In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, movement of capital and investment, migration and movement of people, and dissemination of knowledge.
What is the 5 core of globalization?
The growth of cross-border economic activities has five main forms: (1) international trade; (2) foreign direct investment; (3) capital market flows; (4) migration (movement of labor force); and (5) technology diffusion (Stiglitz, 2003).
