Core Viewpoint - The traditional travel agency industry, once thriving, is now facing significant decline due to policy shifts, market changes, and evolving consumer habits, leading to many agencies exiting the market [1]. Group 1: Historical Context - The traditional travel agency industry experienced a boom, with the number of agencies increasing from 29,717 in 2013 to 56,275 in 2023, a growth of 24.61% from 2022 [3]. - In 2019, the industry reached its revenue peak at 710.34 billion, with many agencies thriving and even opening multiple locations in a single street [3]. - The industry employed over 310,000 people in 2023, with 67.4% holding a college degree, highlighting its role as a significant employment sector [3]. Group 2: Current Challenges - The market share of traditional travel agencies has plummeted, with only 2.53% of the outbound travel market choosing group tours in the first half of 2024, down from 839 participants per agency in 2019 to 355 in 2024, a decline of 57.69% [5]. - Revenue for the industry dropped to 160.16 billion in 2022, rebounding to 592.59 billion in 2023 but still below 2019 levels, with many agencies struggling to cover operational costs [5]. - A significant number of agencies are closing, with over 900 agencies deregistering in May 2024 alone, indicating a troubling trend of high turnover in the industry [6]. Group 3: Reasons for Decline - Policy changes favoring digital transformation in tourism have left traditional agencies behind, as the government promotes "smart tourism" and digital solutions [8]. - The rise of online travel platforms has eroded the traditional agencies' competitive edge, with platforms like Douyin achieving a GMV of over 300 billion in 2024, significantly impacting traditional business models [9]. - Consumer preferences have shifted towards personalized travel experiences, with private tours increasing nearly fourfold since 2019, indicating a move away from standardized group tours [10]. Group 4: Potential Recovery Strategies - Traditional agencies can leverage online platforms, with companies like Ctrip successfully using live streaming to boost sales, suggesting a viable path for attracting customers [11]. - Focusing on niche markets and offering customized services, such as wellness travel for seniors or educational trips for families, can help agencies differentiate themselves from online competitors [12]. - Compliance with regulations and improving service quality are essential for long-term sustainability, as evidenced by significant fines for non-compliance in the industry [13].