Turkey's New Travel Platform Regulation Prompts Chinese Giant Fliggy into Action
The regulation on foreign digital travel platforms on the parliament's agenda paves the way for Alibaba's Chinese platform Fliggy to enter the Turkish market, while worrying local agencies.
The new digital travel platform regulation brought to the agenda of the Grand National Assembly of Turkey (TBMM) has accelerated the preparation of Fliggy, the travel arm of China's Alibaba Group, for entering the Turkish market.
Legal Regulation Preparations
The new bill submitted to the Presidency of the TBMM paves the way for foreign digital accommodation and travel platforms to operate within a legal framework in Turkey.
Plans of Chinese Giant Fliggy
Fliggy, within the Alibaba Group, views Turkey as a significant growth area thanks to visa simplifications and increasing flights.
The company aims to attract tourists with high spending potential by utilizing Trendyol's infrastructure and broad user base.
Concerns of Local Agencies
Local travel agencies that are members of TÜRSAB argue that the entry of global giants into the market will create competitive pressure and put small businesses in a difficult position.
Conditions Brought by the Bill
According to the bill, foreign platforms are required to appoint a legal representative, obtain a license certificate from the Ministry, and have their commission rates capped at 17 percent.