German firm banks on pedigree to grow outbound travel market share

For TUI China, the second half of the year has been a busy one. After getting an outbound license from the China National Travel Administration (CNTA) in May, the company has been preparing to take on competition in China's outbound travel market.

Marcel Schneider, CEO of TUI China, says the company expects to make outbound travel service its most profitable business. [Provided to China Daily]

Until TUI came on the scene, Chinese-owned companies accounted for the lion's share of the outbound travel market in China, estimated at some 57 million people in 2010, according to data from CNTA. TUI China anticipates outbound tourist numbers from China to reach 100 million by 2020.

"There is big potential in China's outbound travel market. Compared to the Western travel market, the Chinese one is still in its early days," says Marcel Schneider, CEO of TUI China.

"Outbound travel programs will be our top priority, and eventually, we want to make it the single most or the most profitable sector for our company," Schneider says.

Before it got permission for outbound travel services, TUI China was mostly doing inbound activities like MICE (Meetings, Incentives, Conventions and Exhibitions) and expatriate travel.

Last year, the company handled nearly 50,000 foreign tourists for inbound travel in China. Nearly 26 million foreign tourists visited China in 2010, with 5.6 million of them coming from Europe, according to the CNTA.

An affiliate of the World of TUI, the world's leading tourism group headquartered in Hannover, Germany, TUI China was established in late 2003. It was the first joint venture with foreign majority shareholding in the Chinese tourism industry with TUI AG holding 75 percent and China Travel Service 25 percent.

With its European background, and an all-Chinese staff and management, TUI China is confident in the unique selling point of its outbound travel products.

"There are lots of plans that we have, and as a European company, we will definitely put extra emphasis on our European heritage," he says.

Schneider says the advantage TUI China has, compared with some Chinese competitors, is that they have a thorough understanding in Europe.