【Record】Mr. Wang Chunfeng, Vice President of Utour Group, delivers a speech at the forum of Tourism as a Catalyst for the Revitalization of the World Economy

Moderator: The last guest is from U-Tour Travel Group. As one of the major wholesalers or organizers of China's outbound tours, U-Tour has certainly suffered great losses due to international flight routes, but I believe U-Tour, backed by China's large outbound market, will definitely make a comeback. I would like to ask Mr. Wang Chunfeng of U-Tour a question: What changes have taken place in international and domestic tourism or inbound and outbound tourism? Whether more outbound consumption will be converted into domestic tourism in the near future, and how long will it take for the revival of the outbound tourism market?

Mr. Wang Chunfeng, Vice President of Utour Group

Wang Chunfeng: Thank you, Professor Wu. Hello, everyone. U-Tour's main business has always been outbound tourism, accounting for 90% of our total. The outbreak was indeed a disastrous blow to U-Tour's main business. So far, our outbound tourism has not resumed yet. Judging from the financial report for the first half of this year, the whole income has returned to zero. This is the status quo.

U-Tour has always had an idea about the whole tourism business. From the perspective of suppliers or market tourism activities, the whole tourism market can be divided into domestic tourism market and international tourism market, and the international tourism market can be further divided into inbound tourism and outbound tourism. However, judging from the final consumers and tourists themselves, their tourism activities determine that they are both domestic tourists and outbound tourists.

U-Tour's previous business was mainly outbound tourism, and tourists' outbound tourism activities mainly followed U-Tour. It doesn't mean that they only traveled abroad but not at home. Our customers hope that we can adapt to the current situation and quickly launch domestic tourism products.

Judging from the overall situation in the first half of this year, after the orderly recovery of China's tourism industry across provinces and around the places of residence, as of August, our tourism business has brought us 1.1 billion yuan from retail to wholesale. How do you view such financial indicators? As far as U-Tour's business as a whole is concerned, this revenue indicator is equivalent to 20% of the same period last year, or down 80%. However, compared with the domestic tourism business, it does grow. This also shows that we have a lot of room for the development of the domestic tourism market and the supply of products. Only by changing the management concept and adapting to the market demand can the enterprises themselves step closer to their revival. This is our view.

Judging from the future trend, whether in terms of outbound or domestic tourism, we have to accept the fact that the market may recover slowly and the recovery might take a long time. It is impossible to make up for losses quickly. We need patience and good preparation.

Secondly, we should reflect on how to reevaluate production capacity in the process of tourism revival. What you can see now is the dynamic adjustment of 30%, 50% and 80% of the total carrying capacity of the scenic spot. I think this dynamic adjustment, from the perspective of tourism suppliers, is equivalent to the production capacity of our industry. There should be a new evaluation when epidemic prevention might become normalized. Based on the production capacity, we can assess the satisfaction of demand. There is a very important theory in the economic circle: "equilibrium". Before the epidemic, our tourism industry may have deviated greatly from the equilibrium theory, resulting in a really prosperous market. However, this time we have the opportunity to look at the relationship between future production capacity and demand with the equilibrium theory of economics.

Thirdly, everyone should get used to the reservation and travel plan. We should have a new understanding of "a trip at any time". It doesn't mean completely following one's whim. We need to adapt to online and offline reservations. In the reservation process, consumers need to wait patiently and the suppliers need to consider tourists' travel rights. For some scenic spots, we need to make reservations due to limited production capacity, so some people might not be able to travel to the site within this year. We should make a balanced analysis of the number of times and the same consumer.

In general, after the epidemic prevention becomes normalized, the entire industry structure, including our operating system, will undergo fundamental changes. The original state of the industry cannot be completely restored. The epidemic is just a warning. If there is no innovation or no change, it will be difficult to find any living space in the market. Thank you.