Wang Zhenghua, the chairman of Spring Group, said that the future of tourism lies in the combination of budget airlines and high quality hotel accommodation, which explains why his company recently entered a strategic partnership with New Century Tourism Group.

Shanghai-based Spring Group and Hangzhou-headquartered New Century Tourism Group agreed to enter a strategic partnership on April 25, creating China's largest hotel and aviation membership alliance.

According to the agreement, the two enterprises will work together on matters related to hotels, tourism, aviation and scenic spots as well as develop a membership union by pooling their resources.

"The collaboration enables the two parties to share with each other their resources and further enhance their sectors," said Wang.

"There are many opportunities throughout the tourism industrial chain and it's almost impossible for a single corporation to capitalize on all of them. Because of this partnership, our two companies can now offer a wider variety of products that are value for money."

In terms of flights spanning four hours or less, low-cost airlines have been the dominant force in the United States and Europe, while most business travelers opt for a high standard living during their work trips, according to Wang.

He Jianmin, a professor from Shanghai University of Finance and Economics who specializes in tourism management, said the development of Spring Group itself is a good example of how premium resources along the industry chain can be consolidated.

"It is a wise decision for companies to extend businesses along the tourism chain by following the travel trends of Chinese tourists," he said.

First established as a domestic travel agency in the early 1980s, Spring Group has since expanded its portfolio to include aviation, hotel, exhibitions, ticketing services, sports events, city sightseeing bus services and financial leasing.

New Century Tourism Group is the nation's second-largest star hotel chain. It manages nearly 240 hotels in 25 provinces, cities and autonomous regions across China, as well as in Germany and the Netherlands.

wang_ying@chinadaily.com.cn