One of Kwan Kin Tours’ storefront
AFTER 36 years in the business, Hong Kong-based Kwan Kin Tours shuttered all seven of its branches last Thursday, leaving 1,500 clients and 52 staff stranded. Their agency licence is due to expire on April 1 and the debt-ridden company will not be able to renew it.
Travel trade members interviewed say they have long heard of Kwan Kin’s business woes and are not entirely surprised with its demise.
According to Jackie Wong See-sum, managing director, Hong Thai Travel Services, Kwan Kin had approached him a few years ago and asked if he’s interested to acquire the business.
He said: “It has changed ownership several times since its inception and frankly speaking, the agency business is not as profitable as before, given the competitive business environment.”
“Operators must respond to new trends such as OTAs. However, Kwan Kin’s products and pricing look exactly the same as always,” he added.
Giving his take on Kwan Kin’s downfall, Wing Wong, W Travel’s managing director, said: “The rumour about its financial problem has been around for awhile. Business has been tough though outbound traffic looks positive. Unlike other players who specialise, Kwan Kin’s products are too general without any niche.”
Simon Wo, general manager, Premium Holidays, concurs, saying: “It’s products were not innovative enough and the business model always stayed the same,” adding that mainland China tour operators have also taken a lot of business away from Hong Kong’s agents.
During a press conference held in Hong Kong last week, Freddy Yip, president of Hong Kong Travel Agent Owners Association, attributed Kwan Kin’s closure to the lack of cashflow, which it had been struggling with for a long time, and he was not surprised that the agency closed down.
Established in 1982, Kwan Kin averaged 150,000 travellers annually and sold tours to China as well as shorthaul group and FIT travel to China and South-east Asia.
