Entry strategies into China for foreign travel companies

Abstract

The opening up of the Chinese economy has led to rapid growth in international tourism, with extensive potential growth in numbersand destinations throughout the world. The structure of the Chinese travel industry is examined here, with particular emphasis upon the future changes likely to take place in the provision of travel services. Some of these changes are evolutionary with free market growth, and some will be caused by the requirements of World Trade Organisation entry for China. This paper focuses upon the issue of whether foreign companies can become more involved in the potentially huge Chinese travel market, and if so in what way they should develop their market entry strategies. In conclusion, it is determined that companies must make a strategic choice between the advantages of early entry strategies or waiting for a clear distinction between the wholesaling and retailing functions of tourism selling to evolve and then implementing a late entry strategy.