Universal Travel Group (“Universal Travel Group” or the “Company”), a growing travel services provider in the People’s Republic of China (“PRC”) specializing in online and customer representative services to the travel service industry offering packaged tours, air ticketing and hotel reservation services, today announced that the Company is accelerating its market expansion into tier-two cities in China.
Universal Travel Group has entered into a number of strategic partnerships with regional travel agencies in tier-two cities, including Zhengzhou, Shijiazhuang, Chengdu, Guiyang, Kunming, Guilin, Meizhou, and Huangshan, many of which are premier travel destinations with rich tourism resources and under-penetrated local travel markets. Under these agreements, Universal Travel Group is able to expand its position in the packaged tour segment, improve the standard of service offered to its customers, expand its customer base in fast-growing cities, and enjoy attractive pricing. Its travel agency partners enjoy access to Universal Travel’s sizable nation-wide customer base and the efficiencies based on its unique distribution model. Under the terms of the agreements, local travel agencies will cover the ongoing maintenance and support for Universal Travel’s revolutionary TRIPEASY kiosks installed in their cities, providing them with a cost-effective promotion platform and improving the economics of kiosk expansion for Universal Travel.
“Tier-two cities in China possess great natural attractions and receive high demand from tourists from both China and the rest of the world. As part of our expansion strategy, Universal Travel Group is focused on increasing our penetration into these regions through a combination of selective acquisitions and strategic partnerships so as to expand our distribution reach and establish a dominant position in the packaged tour segment in China,” said Ms. Jiangping Jiang, Chairwoman and CEO of Universal Travel Group. “Our expansion into these cities will benefit from reduced competition and superior cost advantage with a population base that is becoming increasingly interested in travel opportunities. We view these partnerships as a great way to extend our brand and develop a close relationship with travel agencies that may be good candidates for future acquisitions.”