WHO Headquartered in Singapore, GTMC Travel specialises in the wholesale of outbound products and inbound ground operations. It currently has subsidiaries in Thailand, Malaysia, the Philippines, Hong Kong and mainland China.
WHAT GTMC Travel entered into a joint venture with Vitours, one of the leading tour operators in Vietnam.
Effective May 1, GTMC’s worldwide network of travel consultants have been able to book both inbound and outbound travel packages directly through GTMC’s new office in Ho Chi Minh City. Vitours has been GTMC’s inbound partner in Vietnam for around a decade.
WHY The office will enable GTMC to have a real presence in the emerging market of Vietnam, opening up opportunities to capture demand from bigger travel buyers in the region who often feel more comfortable dealing directly with a local inbound/outbound operator.
GTMC CEO Samson Tan believes the joint venture has another distinct advantage. He said: “Presently, not one of our rivals has actually chosen to expand his business portfolio in this manner. We have individual inbound or outbound competitors in a single market, but so far, no one has been able to compete with us on a regional basis.”
Expanding via joint ventures boils down to the fact that it makes sound business sense, Tan added. “By adopting this approach, we can improve our financial prospects, while scaling up to be a global organisation,” he said.
TARGET Tan anticipates that both inbound and outbound bookings will increase by 50 per cent with the establishment of this strategic alliance. Net revenue from bookings into and out of Vietnam is forecasted to increase by US$1 million year-on-year.
In terms of inbound traffic to Vietnam, GTMC is aiming to attract markets it already has a presence in, such as Thailand and Malaysia. It is also on the lookout for opportunities to grab a slice of the growing outbound Vietnamese market.
Similar joint ventures in other countries are already on the cards. Tan said: “We are in the midst of identifying the right partners in different parts of the world. Presently, we are examining India, the UAE, South Africa and Indonesia as possibilities.”
This article was first published in TTG Asia, May 18 issue, on page 13. To read more, please view our digital edition or click here to subscribe.