Tongcheng Travel Holdings, Parent company of China’s Hunan Airlines has acquired 100% stake in online travel agency Beijing Tongcheng Tourism Investment Group for $102 million, the company declared in Hong Kong stock exchange filing.
The filing read that the company “has been exploring potential acquisition, investment, joint venture, and partnership opportunities,” as since November 2022 when China abruptly dropped its pandemic prevention and control strategy “the tourism industry has embarked on a real opportunity to commence its recovery.”
“In recent months, various tourism and travel activities of Chinese citizens have spiked significantly, with business activities of tourism-related sectors returning to normalcy at an accelerating pace. [...] In order to benefit from the unprecedented wave of inbound and outbound travel, the company wishes to seize any suitable investment opportunities in this post-pandemic era,” the filing further read.
Tongcheng Travel Holdings acquired the remaining 5.67% stake in Hunan Airlines for $44 million in December 2022. Hunan Airlines was already majority-owned by Tongcheng Travel Holdings.
Besides, it bought all the shares of Tongcheng International Travel Service for $29 million in December 2022.
