Economic daily in April 4th, 2010 reported that, MICE tour business in CYTS has kept growing in China Tours. And State Securities suggested, at present, the company has completed both inbound and outbound, domestic, MICE, tour bus, travel, marketing, alliances and other industries form of horizontal integration framework. At the same time, it has taken shape of tourism wholesale and retail network construction. Thus, with outbound and domestic tourism in the rapid growth as well as the picking up inbound market, the growth of tourism business in 2010 is reasonably predictable. CYTS has growing up as one of the leaders in china travel.
In fact, CYTS has four main tour businesses: inbound business, MICE, outbound business and domestic tour business. Inbound tourism business, is to attract, organize and receive foreign tourists to China Travel, tourists of Hong Kong and Macao Special Administrative Region and residents in Taiwan to travel to the mainland, as well as attract, organize, receive these people who are in the Mainland of China travel in the territory. While outbound tourism business, is to attract, organize, host China, mainland residents to travel abroad, to visit Hong Kong SAR, Macao SAR and Taiwan, as well as foreigners, residents of Hong Kong and Macao SAR who are in the Chinese Mainland, and residents of Taiwan in the mainland to travel to outbound. And MICE, which includes the following four parts: the Meeting (meeting), Incentive (Incentive Travel), Conference (large corporate meetings), Exhibition (exhibition event), just capitalize the first letter of the composition. Domestic tour business, just as its name implies, surely means to attract, operate foreigners and Chinese to have tourism business in China.
From its annual report in 2009, we can see that CYTS tourism products and services revenue reached 2.318 billion yuan, an increase of 8.14%, 37.45% income share, this is still the main source of revenue for the company. Since an increase of 9.36% of operating costs, revenue growth rate is greater than the overall gross margin declined 1.02 percentage points to 8.25%. Outbound business profits reached a record high of 17.11 million yuan, gross profit margin of 12%, and an increase of 1.5 percentage points. The average margin of inbound tourism business during the reporting period is 17%, which compared to 2008 has increased 3 percentage points; domestic tourism revenue hit a record high, representing a growth of 28% over the same period in 2008, the average gross profit margin of 9%, an increase of 1 percentage point.
It is noteworthy that, in 2007 the private placement to raise funds projects — MICE business has maintained a sustained growth. Annual report in 2009, exhibition services business achieved operating income of 5.3 billion yuan, up 10% over the pre-investment funds raised 141% growth in 2006, reporting a net profit of 20.44 million yuan during the period.
In addition, the area and hotel business will be in the regional effects of the Shanghai World Expo Adds luster for the performance of the company. Report shows that area last year, operating income of 5% of its total revenue. Wuzhen Tourism 2009 tourists there were 3.24 million, an increase of 29%, sales revenue of 304 million, an increase of 26%, of which 162 million ticket sales, consolidated revenues of 138 million yuan, basically realized the business model from the “single ticket “to” comprehensive destination “of the successful transformation. Data shows that it got full-year net profit of 90.65 million yuan, an increase of 47%.
Just as State Securities suggest, the tourism business of CYTS will continue to maintain a good development trend. Want to travel though CYTS, you can click China Flights here.
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