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A series of newly disclosed acquisitions by Tongcheng Travel Holdings Ltd. (0780.HK) shows the online travel agency is trying to diversify its service offerings, as part of a bigger business expansion strategy. Such services – especially a new outbound travel service – should help it to better capture rising travel demand following Beijing’s decision last month to pivot away from its “zero Covid” policy which has wreaked havoc on the travel industry for the past three years.
Tongcheng announced in a regulatory filing last week that it signed deals to invest a combined 1 billion yuan ($145 million) in five companies in 2022. Among those, the most notable was a 200 million yuan acquisition of packaged tour operator Tongcheng International Travel Service, which was spun off from the company in 2016 as a result of a wider restructuring. The pair signed the agreement on Dec. 29, though it has yet to close.