 China's first travel JV opens in Shanghai |
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The official opening of the city's first corporate travel joint venture was announced on Feb.26.
Formed by China International Travel Service Head Office (CITS) and American Express, CITS American Express Air Services Ltd is expected to expand its reach into the fast-growing Shanghai market.
The city is an important market in the CITS-American Express expansion plan. It is the hub for around 300 of the Fortune 500 multinational firms in China. Inward and outward bound air travel experienced a 16 per cent growth in 2002. Company statistics also reveal that hotel occupancy in Shanghai is at record levels.
"The corporate travel market in China is experiencing rapid growth, and we are positioning ourselves to take advantage of it," said Charles Petruccelli, president of American Express Global Travel Services, the world's largest travel management company.
"We have established business travel operations in commercial centres where demand is greatest, that is Beijing and Shanghai today, as well as in Guangzhou, which just started operations this week. We are optimistic that our business travel sales in China will double in the next 12 months," he added.
As part of its growth plans, CITS-American Express will expand its corporate travel network into 40 other cities across China within the next 12 months.
American Express estimates that total annual travel and entertainment spending in China will reach US$10 billion, of which US$4 billion-US$5 billion of this is for business travel.
The company estimates that with China's entry into the World Trade Organization, the market will continue to grow as a result of demand from both multinational and local firms.
"If you compare China's business travel potential to other major global markets, its size is already about that of major European countries, like France and Germany," Petruccelli said.
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