China'S Current Travel Management Penetration Rate Is Still Low.

"There are 4300 SMEs in China, and it is already a very impressive number to serve 1/10."

Ali travel vice president Zheng Weibin said.

In October 11th, Ali travel with its mobile office platform nails to launch Ali business travel service and enter the TMCTravel Management Companies industry.

After personal travel, business opportunities for growth in the BtoB travel management industry are emerging.

According to the monitoring data of AI, it is estimated that China's travel management market will enter a rapid growth beginning in 2017, and it is expected to exceed 200 billion yuan in 2018.

It is understood that Ali business travel covers air tickets, hotels, train tickets, corporate car rental, group building, travel insurance and other business travel needs, small and medium enterprises in the mobile terminal can enjoy free travel money, no invoice, no reimbursement, all of these services are free.

Insiders said that for the newly entered TMC industry Ali, the financial ecology will be the core competitiveness.

With the enterprise class application of the financial, payment and credit system under Ali, Ali business brigade can realize the unification of the enterprise to pay the public, not only do not need staff to pay, even do not need enterprise advance, even for the enterprise to pay, reduce the pressure of cash flow.

Compared with the mature market abroad, China's travel management is still in the stage of gradual development.

BCD Travel is a multinational TMC, which has covered more than 100 countries in the world. Gao Siwei, the managing director of Greater China, told reporters that Ali's entry into the TMC industry will have a certain degree of stock of the TMC industry.

At present, only medium and large enterprises use TMC services. Most SMEs have not established their own travel management system. Travel demand is usually accomplished through OTA or other channels.

But Gao Si Wei stressed that Ali did business travel systems and platforms, rather than the traditional definition of TMC.

Compared with the traditional TMC, Ali has no offline service team, but only convers some tickets, hotels, rentals and other resources together.

This will challenge some OTA (such as Ctrip, eLong) or small ticketing agents that have been nurturing for many years in the business area of air tickets, hotels and so on, because the original customers of small and medium-sized enterprises are scheduled to travel through individual channels, but have little impact on BCD Travel and other large business travel companies.

In an interview with reporters, Zheng Weibin also said that at present, large companies need specialized service providers to make customized services, while Alibaba is mostly serving small and medium enterprises that are unable to enjoy high-quality services at present.

In the long run, Ali's business travel mode and other business travel market models can coexist.

If Ali's advantage in TMC is to make resource integration, will it do the meticulous work of issuing and reconciliing the travel management?

Gao Siwei said that compared to personal travel vacation, business travel services are more demanding and finer, and Ali business travel is a TMC service provider of heavy assets and light assets. There is no offline service team, which can not provide more precise and specific services.

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How to connect with upstream and downstream suppliers is also a long-term running in process.

Take air tickets as an example. For a professional TMC, booking and issuing tickets at the front desk is not the end. In the background, it also includes the docking with suppliers, the reconciliation of the monthly finance department every month, the management of business travel policies (for example, which employees can take business class), the approval process, the customer management (each enterprise has designated customer managers), the entry into the three party agreement of the airline enterprises, the provision of market reports to the enterprises, and the negotiation between the enterprises and the airline companies.

Professional rigid demand and the birth of TMC (travel management company), in developed countries, TMC has nearly one hundred years of history, the world-famous TMC companies have American Express, British BIT, Carlson, BCD, HRG and so on.

When choosing TMC, there are two schemes for large multinational enterprises. One is to adopt a multinational TMC in a unified manner, so as to facilitate the rapid deployment of business travel management programs while reducing the number of cooperative suppliers. The two is to select a local TMC in the local branch.

It is understood that the world's top 500 companies around 30%-40% chose global TMC.

In the global adoption of a TMC enterprise, enterprises can negotiate with TMC to get the best price. Unified suppliers can also improve administrative efficiency.

But Gao Siwei also pointed out that the local TMC will give a very competitive price to attract customers, and pnational TMC should adjust the price of the region according to the market size of different regions.

It is understood that BCD Travel in the domestic mode of charge for each ticket + hotel (domestic) 25 yuan -35 yuan service fee.

Its total turnover in 2015 amounted to US $23 billion, while China's turnover was only US $490 million, accounting for only 2%.

In this regard, Gao Siwei said that China's TMC market is not mature enough.

China's current travel management penetration rate is still low, and many state-owned enterprises and government agencies use traditional ticketing agents. The proportion of TMC used in domestic enterprises is 10%, and the ratio of TMC to TMC is 30%, while that of European and American companies exceeds 50%.

Suppliers are also scattered. In North America and Europe, CR4 (the top 4 share concentration index) is over 60%, and the Chinese market CR4 (according to unofficial data, 18% of Ctrip, Naka Yoshinobu, CIT, BCD Travel) account for less than 10% of the largest Ctrip Travel.

These data prove that China's travel market will have huge room for growth in the future.

At present, there are only one or two large scale local TMC in China, most of which are small and small ticket agents. They are mixed with other businesses and do not provide professional TMC services.

In China's TMC, after ten years of development, Ctrip has developed into a domestic comprehensive travel service provider. Business customers can get services such as air tickets, train tickets, cars, insurance, visas and conference tours. These are the third party access tools and provide the above offline services.

In terms of travel procedures, online application and approval can be applied, access to company's travel standards, provision of advance month service, and access to corporate financial reimbursement systems.

Ctrip's official website shows that the above travel control can help businesses save up to 30% of their travel expenses.

CEO, Fang Ji Qin, a business travel division of Ctrip, said in an interview with reporters that Ctrip is an independent operation Department in Ctrip. Last year's revenue has reached the sum of second and third of all TMC enterprises in China. It will consider listing independently in the future.

Fang Jiqin said that most suppliers of Ctrip's business trip were from Ctrip, which made the product line complete. The capital guarantee of Ctrip's business trip could also provide enterprises with monthly closing and advance.

In terms of fees and charges, Ctrip merchants receive commissions from suppliers and partners in terms of hotels and vehicles, while air services charge service fees to airlines.

In the distribution of air tickets,

It has always been one of the important distribution channels for airline companies.

Zhang Yun, deputy director of China Eastern Airlines pformation office, said in an interview that the proportion of direct sales has exceeded 40%.

At present, there are still many agents with more resources. They are not necessarily big in scale, but they are deep in a vertical subdivision and have plenty of resources.

In recent years, in the tide of sharing the economy,

It is also expected to ride the east wind.

Gao Siwei said that BCDTravel has cooperated with Airbnb in North America and placed its housing on the platform. Fang Ji Qin said that Ctrip's business partners were collaborating with others in the use of vehicles, and at the same time, Ali merchants also had access to Shenzhou, didi and Yi.

Long Jie, vice president of Shenzhou excellent car group, believes that Shenzhou is a tool for TMC in travel and enterprise cost solutions.

But the domestic special car is much higher than the taxi price. The Shenzhou special car has also opened up the business travel market through the credit card thirty percent off discount.

He said that in the future, Shenzhou may launch door to door products to achieve seamless docking from door to door.

In terms of accommodation, facts show that business people who look like "stodgy" do not refuse fresh home stay experience.

"The product is developed by their team in a short yard of a pig."

Wang Liantao, chief operating officer of the short hire pig, illustrates the changes in the demand for business travel providers.

He said that some people have been able to meet the demand for frequent travel and frequent business trips through small pigs.

But Wang Liantao said, "invoice is always a problem in China."

If business travelers are to be used on a large scale, they must also solve the threshold of some business accommodation, such as 24 hours of check-in and check-out, smart door locks and basic business facilities.

Under the impact of new economy and capital, people are constantly coming in and constantly being eliminated. From Gao Zhiwei of BCDTravel, Fang Jiqin of Ctrip, and Hansheng of "travel No. 1", they believe that there will be an integrated process for small and medium sized TMC in the future. Small and medium-sized TMC without competitive advantage will gradually disappear in the market.