TravelDaily, Nov 12– LY.com founder and COO Ms. Jian Wu announced a RMB100 million boost of registered capital of the company's Suzhou-based subsidiary LY International Travel on June 6, 2014, in preparation for its next phase of business expansion and entry into the B2B travel market.
Ms. Wu said the capital injection was necessary to scale up LY International Travel and enhance its strategic leverage. "The company will now enter the B2B travel market with a two-way open business model that links resources with distribution for business partners,” she said.
"LY International Travel will consider working with core travel agency partners to create tighter partnerships through mutual funding. The company is now procuring day-trip vacation products from the top suppliers in all major destinations in the country to offer online while also planning to increase the scale of its outbound tours and cruises five-fold in 2015. They have already purchased 170,000 outbound travel quotas from suppliers and travel agency partners in the first round of purchasing. Its purchase for cruise charters for 2015 is set to be three times higher than in 2014.
LY International Travel was established in July 2010 as a subsidiary of LY.com and is licensed to conduct outbound and domestic travel services. It has branches in Shanghai, Beijing and Suzhou and showrooms in eight locations across the nation set up in 2014. LY.com already a leader in the B2B travel market, is set to change the landscape of the B2B travel market with its new strategy.(Translation by David）