Ctrip embattled

Absrtact: The Shanghai World Expo has detonated the blowout of China's tourism market, the travel agent market is a stream of saliva. Zhungyuxiang, vice president of Ctrip Network, recently wrote that hotels and airlines will not be conducive to the development of tourism industry, this

The opening of the Shanghai World Expo has detonated the blowout of China's tourism market, and the saliva Battle of the travel agent market has been endless.

Zhungyuxiang, vice president of Ctrip, said recently that hotels and airlines will not be conducive to the development of tourism industry, the "Generations industry, enhance the cost of consumption," the practice will hurt the tourism industry. To this, where to go Network hotel business Vice President Zhang Response, direct sales and distribution is a complementary relationship, the next few years the share of direct sales will gradually increase, "ctrip this ' professionals ' obviously too layman." "There are also comments from the industry, which can be understood as a start of the Ctrip counterattack model."

The War of Saliva

In the interview with the reporter, Zhang do not agree with Zhungyuxiang said direct sales will generations industry's argument. He said that the Global hotel group in the development process are in their own direct sales business is very mature, marginal benefits can not continue to upgrade when the use of distributors channels, the purpose is to expand channels to ensure revenue.

"The general situation of the domestic hotel industry is that a large number of hotels have no channel concept, so that distribution channels in China to develop rapidly, and form a monopolistic pattern, the channel in turn to control the hotel." Zhang also stressed that this situation if the hotel's employees do not early awareness, improve, it is bound to make their own profits continue to lose.

"At present, the number of commissions charged by distributors in booking business such as hotels and air tickets is still considerable." In the hotel reservation, Ctrip's average commission is 71 yuan, this money I as a direct to consumers. "Zhang also said that Ctrip's industry monopoly status" is its courage to such a strong foundation. Data show that in 2009 China's online travel booking operators revenue share, Ctrip to 55.6% of the highest share of the top. "Over 50%, it should be a monopoly." ”

"The establishment of their own direct marketing network is imperative, do direct marketing does not mean to completely shut down distribution." Therefore, the hotel should do is to adjust the direct sales and distribution of the effective proportion. Zhang said that the hotel industry and the aviation industry has a long history of indissoluble bond, the airline currently launched the 0 Commission plan is worth the hotel industry to learn, the hotel industry can try some zero Commission to promote the way.

Zhungyuxiang in the article pointed out that in April, the French Dutch airlines will air ticket Agent commission, so that agents to buy air tickets for consumers to collect service fees of the practice of great risk. "The agent only has a 3% commission on each of the previously sold tickets, and now it is zero, or it will force some agents to make a cheat of the yin and yang invoices more than 10 years ago," he said. "Zhungyuxiang said.

To this, where to go net ticket Product Department senior director Yang said does not understand: "What method to seek the difference is a moral bottom line, cannot because the Commission drops or the tip does not collect cheat." "Yang also said that the Internet as the representative of the new technology so that the airline's information disclosure has been guaranteed, so that communication with consumers to achieve barrier-free, it means that the proportion of direct sales will gradually increase.

Yang For example, the current Chinese air ticket market only accounted for 7%-8%, and the international proportion is 40%-60%. "China will reach an ideal state after 2-3 years, that is, airlines can do 40%." ”

The reporter calls Ctrip, the other side did not make a positive response.

Ctrip embattled

In fact, this is not ctrip in the past half a year to experience the first war of words.

This March, Art Dragon CEO Cui shelling Ctrip Complex, more restrictive "low price guarantee payment commitment" is simply to take consumers as "agents" play; in April, Ctrip to threaten the low price promotion hotel under the latter's protest, Huitong World President Zhang Yi even accused each other is "Industry price bureau."

In many accusations, Ctrip's monopolistic position in the industry has become the focus of its attack.

March 10, 2010, Ctrip officially launched a new "low price commitment": under the network booking conditions, Ctrip to ensure that the lowest price in the domestic hotel, otherwise pay 3 times times the cash difference. And those who participate in "shock Expo opening price" hotel, booking prices than Ctrip 20%-60%, there has been a serious price upside down, naturally difficult to escape Ctrip "purge."

Why does Ctrip dare to make the "lowest price" commitment? It is the key to the monopoly power of the market. At present, Ctrip occupies more than 50% of the market share, many hotels have 20%-30% of the tourists from Ctrip, which makes Ctrip to the hotel pricing has a huge power of speech. In the world with the exchange of this battle, it is because dare not offend Ctrip, those who originally and the World signed the relevant agreement of the hotel had to Ctrip "surrender."

And in Ctrip relying on its monopoly status continue to "coerce" hotel unified prices, to go where the network as a representative of the direct sales upstart is gradually growing.

More importantly, in the introduction of low-cost commitment, Ctrip also acquired the Han court about 8% and the first Brigade Jianguo Hotel 15% of the shares. Economy Chain Hotel is Ctrip's Market short board, its launch of "star Cheng" chain brand has not achieved obvious results. The offering of capital Broadsword, its intention to enter the Low-cost market, encirclement and suppression of competitors is increasingly obvious.

Subsequently, the old rival art Dragon on the launch of a dedicated to the low price of ctrip commitment, to where the network president Zhungchengsu said that the low price commitment is "word game", the blame for Ctrip monopoly is endless, the entire industry seems to have set off a siege of Ctrip.

And in Cui View, Ctrip before the stake in the Han court, holding such as home, the establishment of their own hotels and other acts also accelerated 7 days and other hotel direct sales behavior.

Cui said the Arts dragon wants to be a neutral third-party marketing platform and does not want to compete with its partners. "Because if you're competing with a partner, it's hard to become a neutral distribution platform." Hotel said that you do the hotel booking, and I do the hotel, who will sincerely cooperate with you? They all understand the truth, it is difficult to understand that our competitors can not understand this truth, the competition has a bad impact on the industry. ”

Cui also said the last 7 days hotel announced that the reason for all the direct selling is this, is to see some competitors are not very rational behavior, and led to the hotel is also very passive, ctrip investment in the Han court and such as home, including their own push Metro hotel, the whole industry has a negative impact. "So 7 days to speak openly about such things, I believe that Ctrip's stake in the Han court is a great impetus, art dragon hope to go another way, do not harm the interests of consumers, first let our staff satisfaction, the second let customer satisfaction, the third let the partners satisfied, then these three stakeholders are satisfied, our shareholders are accordingly satisfied. "Cui said.