Ctrip again where to go, online tourism market melee

"Technology News" September 18, online tourism market this year is changeable, not long ago Ctrip, the same way and the cattle or "Die Knock" object, but in a twinkling, Ctrip bought a 15 million-dollar-a-class common stock, and to more than 200 million U.S. dollars to join the same process, become the second largest shareholder. And the two main competitors in the online tourism market, Ctrip and where to go also in some areas to reach cooperation, and even the two sides reached a merger news. A time of fierce competition in the online tourism market has appeared hello I good everyone good, dead to the second family strange situation.

Of course, this bizarre situation did not last long, the recent online tourism market, the two giants Ctrip and go to where the net again staged "the next door."

September 9, Ctrip the company's all hotel products from where to go to the grid, and accused to go where the network is not fair, but also in the deception of consumers.

According to Ctrip staff, Ctrip from where to go to the network from the hotel products, the main reason is to go where the network through a large number of "vest" agents and other means, through technical means to give these agents the product prioritization, more to the consumer present, thus triggering a ctrip dissatisfaction, affecting the willingness to cooperate.

"Where to go nets this and do OTA behavior, resulting in other OTA many preferential hotel prices can not be displayed, to other OTA extremely unfair." Where to go the net of this practice, so that its so-called search compared to the fairness of the platform completely lost. At the same time, this is also a deceptive behavior for the vast number of consumers. The worker said.

But where to go net for Ctrip blame and product of the reasons, do not agree.

Where are you going? The responsible person said, "Where to the network since the introduction of a one-stop service SaaS platform (software as a service), the supplier has provided a unified telephone service, suppliers can use to where the unified customer service phone, at the same time where to monitor the services of suppliers to protect consumer after-sales service and The official said that this is the so-called "vest" agents of the service hotline for where to go to the network related telephone number reasons.

The official said, where to go the network has been positioned in the integrated tourism category vertical search platform, the mode of cooperation has direct sales and distribution of various forms. Whether it is in cooperation with the hotel group as a direct sales platform, or with OTA distributors as a marketing platform, where the network has always been operating as a platform.

In the director's view, Ctrip the next hotel products, in fact, there is another reason: "Ctrip in and go to where the network cooperation, repeatedly asked to obtain more traffic." But where to go the net is a comparison platform, where consumers go online to compare the price of each merchant, each partner gets the flow is the result of consumer choice. Ctrip where to go online price competitiveness is not strong, the advantages are not obvious, sales, is the main reason for Ctrip products. ”

In fact, as early as this April or May, there has been a "two-way" tickets to where the network under the storm. Where to search for the scenic spot tickets found, there has been no the same journey, Ctrip ticket products, replaced by the mother of the donkey, where to buy, slip card and other tickets.

The point of contention between the two sides is who gets off the shelf and doesn't step backwards. Where did you go in Wednesday? The relevant responsible person told reporters that the next frame is "because of the jump of the supplier's website to provide service security and operational experience levels are uneven, where once to bring a large number of complaints." Ctrip also insists it is "on May 15 to take the initiative to go where the holiday and ticket products", and say "Where to go" ROI is very low, the flow and conversion rate is not as expected, and Ctrip's marketing system emphasizes both the open balance and the implementation effect, so we consider the next frame related products. ”

As for the follow-up effect, the two sides have a unanimous "almost no impact". Where to go, said the next day after the shelf, to where the net ticket business orders increased by 9%, trading volume increased by 12%. Ctrip also said that where to go is only one of the many channels of business cooperation.

We can't come to a conclusion yet, but the intense competition in the online tourism market and the convergence of the industry business model are undoubtedly the cause of the "next door" incident.

Last month, the U.S. stocks listed company's first earnings after the listing, the two quarter of this year, the company's revenue rose 84.9%, but at the same time the net loss as high as 113.6 million yuan, the losses expanded by more than 15 times times. The problem of serious losses is also widespread in many OTA (online travel booking business) companies, in early August reported Ctrip, art Dragon NET data also shows its profitability is declining.

Analysys International analyst Zhu Zhengyu said, the current OTA industry overall cost rise is the trend, online business market potential gradually magnified, more and more companies to participate in competition, marketing, promotional means are also diversified, so increased the cost pressure. However, OTA is currently facing a common problem of profitability, "profit for the market" to become the mainstream, but they can only expand the scale and market, in order to establish a position in the medium and long term competition.

Ctrip, the Art of the Dragon and other peer data also indicates the situation. Ctrip's two quarterly earnings showed net revenue of 1.7 billion yuan, an increase of 38% per cent, and a net profit of 135 million yuan, down 36% per cent year-on-year. Art Dragon two quarter net profit of 31.1947 million yuan, the same year, but mainly benefited from 30 million yuan of other operating income accounted for.

At present, the competition in the online tourism market has been formed, by the industry giants through the constant share, investment, acquisition and other means, making the industry resources further concentrated. Some industry commentators believe that, with the integration of upstream and downstream resources, the current online tourism site is already showing the whole business situation, now the next storm and other events, just for further competition after the momentum. "In the foreseeable future, China's online tourism market will also develop rapidly, this piece of fat nobody wants to lose."