Assessing the future of O2O concept in China’s travel distribution sector

The upcoming 2015 TravelDaily Conference, slated to take place in Shanghai (September 16-17), is a big opportunity to learn more about the O2O model as five CEOs from top intermediaries discuss the same.
 

The Chinese travel distribution category today stands at an interesting inflection point.
 

There is no doubt that the sector is brimming with optimism. If on one hand, mobile is being tipped as the biggest thing, on the other the concept of O2O is being followed closely, something that the retail sector believes is the way to counter consumer’s drift towards “showrooming”.
 

Talking of mobile, big Chinese OTAs’ growth strategy clearly stands out, especially their mobile portfolio which accounted for 60-70% of their total online transactions in the first quarter.
 

At the same time, for some other intermediaries offline isn’t completely out of favour. The O2O model, which is about directing online visitors to physical stores, is gaining prominence. While some online intermediaries are focusing on the offline part by opening stores and investing in traditional agencies, this fragmented market is also witnessing initiatives being taken by offline players, making both organic and inorganic moves to take a deeper plunge in the online sector.
 

Take the case of Tuniu. The online leisure travel company chose to acquire majority stake in two tour operators in March this year. Through this move, Tuniu intends to expand its product offerings to Taiwan, a fast growing and popular destination among Chinese leisure travellers. More recently, tour operator HKCTS Group, too, chose to merge its subsidiary CTS with OTA Mangocity.
 

There are some other deals that are equally significant. For example, after clinching control of Club Mediterranee, conglomerate Fosun International bought a 5% stake in Thomas Cook. 
 

So how can O2O prove to be a game-changer for Chinese travel intermediaries?
 

Explore what’s in store as senior executives from Alitrip, Tuniu, Utour, Mangocity.com and Tongcheng Tourism discuss the same at the upcoming 2015 TravelDaily Conference , slated to take place in Shanghai (September 16-17).
 

The list of speakers for the session, titled `Reshaping the Online Travel Landscape, is as follows:

– Any Wu, CEO, Tongcheng Tourism

– Donald Yu, CEO, Tuniu

– Bin Feng, President, Utour

– Shaohua Li, General Manager, Alitrip, Alibaba Group

– James Li, CEO, Mangocity.com