TMCs face uphill task in China - study
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The travel management companies (TMC) sector in China is set for explosive growth if the industry can overcome challenges in China’s regulatory environment and in technology infrastructure. This is according to a report commissioned by Amadeus and conducted by travel research authority, PhoCusWright.
Entitled ‘Corporate Travel Management and Practices in China’, the report found that less than 20% of 112 corporate executives interviewed in China use TMCs to manage their corporate bookings. With the scale of the Chinese corporate travel market, this figure is considerably low compared to smaller markets in other parts of the world.
Peter Smith, Vice President for Business Solutions Group Amadeus Asia Pacific, said; “It is obvious that there is still huge potential for TMCs in China to grow their business and for corporations to improve efficiency and cost savings with the use of TMCs. If TMCs want to fully maximise the vast opportunities in China, it is critical that they understand the complexity of the market and overcome the challenges that exist.”
The report identified two major challenges for TMCs operating in China: China’s regulatory environment, and the limited use of IT for travel management.
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