Looking at the future of China's online tourism from "where to go"

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Wen/Wang Kuanxiong

Into the August, but also to the middle-almost shares of the season to report earnings. 22nd, China's largest tourism vertical search platform to where the net released the second quarter of 2014 earnings, so far, the U.S.-listed Chinese online tourism giants have handed over two quarterly results.

Tourism occupies a significant share of GDP in China, and online tourism in comparison is the potential of unlimited, although the current participation in the "player" has been a lot, but because the industry has a large body, so the industry are taking the "sacrifice of profits, even at the loss for the future" thinking, focus on the expansion of market share.

"Happy Enclosure" era, the existing base and volume are fleeting, only the growth is worthy of concern, who can continue to achieve faster development speed, who can have the future. Below, we will be based on growth, from a number of dimensions to see the industry's three big "growth story."

First, Ctrip, where, art dragon revenue growth comparison

Figure 1: Ctrip, where to go, art dragon revenue growth comparison chart

First, the most comprehensive embodiment of corporate expansion is the "revenue growth". According to Ctrip, Art Dragon, where to go the three giants have just released the two quarterly earnings, three of the total revenue growth rates are: 38%, 24%, 127%.

In addition, the above figure shows the total revenue growth rate of three in the past year, can see where to go the net growth momentum is most obvious, showing a relatively rapid growth trend, followed by Ctrip Travel Network, basically also maintain a stable growth, but relatively weak range, and the growth of the arts is not stable, starting from the 2013 Q4, They basically withdrew from the competition in the first camp.

Over the past year, the "price war" has run through the entire online tourism industry, and in the battle for the wireless side, the Giants are adjusting their overall strategy accordingly. Only from the point of view of revenue growth, a series of adjustments in the dust, the future of online tourism will be where the king and Ctrip to choose between, and the rapid development of where to go, Ctrip is now obviously slow action.

Analysis on the air ticket business of the main online tourism enterprises

Figure 2: Ctrip, where to go, art Dragon ticket business revenue growth comparison chart

Generally speaking, air ticket business is an integrated category of online tourism business revenue of a major pillar. According to Ctrip, where to go, art Dragon three in the second quarter of 2014 earnings showed that three of the ticket revenue growth: 39%,143% and-1.4%.

Figure 2 is the revenue growth of the airline ticket business over the past year for three companies. As can be seen, as previously known, the airline ticket for where to go to the advantage of the field. Art Dragon because of strategic reasons, Zhi is not here, the growth situation is very understandable.

and Ctrip in 2013 3 quarters where to go beyond, the loss of more than 10 years ago to maintain the first seat of the ticket market has not set off an effective counterattack, in the field of ticket growth has always been tepid, by contrast, where to always maintain a high growth rate.

In addition, a lot of people may be in the 2014 two quarter where the big increase in airline ticket revenue is puzzled, through to where to go to the results of the search, know the main reason for where to go in the two-quarter "single ticket" of the revenue rise.

Through the collation of historical data, and compared with Ctrip, we can see, because of where the main revenue way for CPC, and Ctrip for commission, so the single ticket of the revenue of Ctrip will be higher than where. But by proportion, we'll find out where we've been in the past year. Single ticket revenue has grown at a very high rate, compared to 3% of Ctrip, where it has reached an astonishing 46%.

The reason, I think, along with the network ticket to where the brand influence and awareness of the continuous strengthening, more users choose where to go to the network as its online ticketing entrance, its online ticket booking market share of the first position, to promote where to the upstream supplier control and bargaining power continue to improve.

Third, online tourism major Enterprises hotel Business analysis

Figure 3: Ctrip, where to, Art Dragon hotel business revenue growth comparison chart

The hotel business is another main pillar of the online tourism enterprise. According to Ctrip, where to go, art Dragon three in the second quarter of 2014 earnings showed that three of the hotel revenue growth: 47%,79% and 28%.

Figure 3 for the past year, three companies in the hotel business revenue growth, you can see the competition in the hotel area is extremely fierce. Focus on the hotel industry in the Q3 in 2013 after a substantial increase in the last two quarters of poor performance, reflecting the art dragon focus on the hotel strategy is worth exploring, there is no other areas in the business and resources of effective support, the hotel business itself may be clap.

In contrast, Ctrip's growth pace is relatively smooth and steady; where the growth in the two-quarter has come down, but fortunately has remained the absolute leading edge, you can see that the company is coordinating the advantages of resources continue to increase in the hotel sector, and strive to maintain increased market ownership in this area.

Figure 4: Ctrip, where to go, Art Dragon Night volume Growth Contrast chart

The growth of the business sector may be more descriptive, with the above three companies in the night volume of growth in the comparison, of which art dragon from the beginning of the decline is more obvious. and carry Ctrip and go where all keep steady growth, speed, go where advantage more obvious.

Analysis on the wireless service of the main online tourism enterprises

Wireless end has been the most concerned area in recent years for online tourism enterprises, because of its representative online tourism in the future of the main business portal, so the industry has been the "Wireless get the World" argument. Whether it is Ctrip, where to go, or Art dragon, are in the price, subsidies and other channels for wireless users.

Overall, because to where the network into the wireless field time earlier, it has maintained a more obvious advantage of the first. At the same time, because the core data in this area is currently only going to the web for continuous publication, we are based on these data to look at the wireless development of the online tourism profile.

Figure 5: Where to go wireless revenue annual growth rate chart

As you can see from Figure 5, there has been a very high rate of growth in wireless business revenue over the past year. From last year's more than 300% has jumped to this year two quarter 500%. Can be seen, on the one hand, the choice of subscribers and payment is rapidly to the wireless side, on the other hand, online tourism enterprises for wireless resources to support a great strength.

Figure 6: Where to go wireless accounted for total income cloak growth chart

In addition, as shown in Figure 6, wireless revenue as a percentage of total revenue represents the excessive quality and speed of enterprise revenue to the wireless end. Where are you going? In the two quarter of this year, it was reported that wireless revenues accounted for 36% of total revenue, which should be an exciting figure, compared with an international average of around 20%.

Previously, the industry revealed that the field of data is difficult to obtain because many enterprises in the competition for wireless users at the same time, substantial rebate subsidy, resulting in wireless related data "is not appropriate" external disclosure. In this way, the net does not take the subsidy measures under the user activation volume and the number of revenue is even more valuable.

Conclusion：

It is not difficult to see from the above that the overall pattern of online tourism is not complex, the main players for Ctrip and where to go. and Ctrip and where to contend, has always been OTA and platform of the model of contention, platform in the development of the future, and OTA offline resources are equally important.

Now, Ctrip want to transform to do the platform, where also under the hard to do under the line, heavy Ctrip want to be light, and smart to where to increase the necessary weight. But the world operation, only fast not broken, in this battle for the "Golden Division Point" of the war, who can win the future king status, in the final analysis also depends on growth. And so, where to go. The rapid growth that is now unfolding in most areas is making the industry's landscape extremely delicate.