Luo Wenbei brought me to another five-star hotel which was almost as good as the previous hotel.
After reserving two adjacent rooms, I accompanied Luo Wenbei to have dinner.
Since Luo Wenbei had lived overseas for quite some time, he preferred Western cuisine, particularly steak. He looked like a charming and elegant nobleman when he was having his steak and red wine.
“Did you discover anything since you've joined the tour for two days?” Luo Wenbei asked me.
“The group tour is up to the mark. But if I were the decision-maker, I would go for tailor-made group tours. Nowadays, numerous companies are targeting low-end and middle-end customers. I'm not optimistic about the prospect of low-end and middle-end markets. The profit margin is very low, but the competition is very stiff. Since the profit margin is too low, many companies have to directly or indirectly force their customers to go shopping. However, this will create a lot of problems as a result. Even though the turnover of tailor-made group tours may not be as high, I'm optimistic about its potential profit margin.”
Luo Wenbei nodded and said, “Anan, I must compliment you for having considerable insight about the market even though you merely experienced it for such a short time. We acquired this travel agency in the hope of diversifying our businesses and establishing a complete value chain in the future. As you can see, the business model of this travel agency is barely satisfactory. We're looking for ways to usher in reforms but we haven't come up with a solution yet. Your suggestion is very constructive and helpful.”