China’s HNA Group enters online travel sector

HNA Group, the Chinese conglomerate that owns Hainan Airlines, has entered the online travel sector.

The Haikou-based company has formed a joint venture partnership with NetEase Inc, a Chinese internet and online services provider, to form a new online travel company.

In December 2014, the two companies signed a framework agreement to become partners in the sectors of online travel and travel finance. For the new joint venture, NetEase’s wholly-owned subsidiary, Lede Technology, will provide HNA with technical and marketing support, while HNA will offer its operational expertise in the tourism and travel sectors.

“Internet technologies are rapidly altering and improving the traditional tourism industry [and] consumers will be the greatest beneficiaries of this change,” said Fang Rui, vice president of NetEase and CEO of Lede Technology. “Although the development of the online travel industry is already advanced, the service quality, transparency of information, protection of consumer rights, and user experience within the online travel industry could be greatly improved.

“This joint venture will put customers first and foremost and use the strengths of both companies to provide the most efficient and enjoyable travel experience for users,” he added.

The move into the online travel sector will complement HNA’s existing tourism business, which includes HNA Tourism, a major Chinese travel company, HNA Finance, HNA Cruises and multiple airlines, including Hainan Airlines, Tianjin Airlines, Hong Kong Airlines, West Air, Lucky Air and Fuzhou Airlines. The company also owns stakes in Ghana’s Africa World Airlines and France’s Aigle Azur.

Details of the new online travel company have not yet been revealed, but given the strength of HNA, the business could potentially grow to rival the country’s biggest OTAs, such as Ctrip, Qunar and eLong.

sourced:traveldailymedia.com