Missed group buying opportunities mobile Internet response slow

Ctrip announced that the company's board of Directors has passed a total of 300 million U.S. dollars in the stock repurchase plan, at this time Ctrip market value of nearly 2.4 billion U.S. dollars, which means that its repurchase accounted for up to 13%.

The same rhetoric echoed in his ears, though, advocating "how the Ctrip managed and how stable the core team" is.

But the company's share price continued to plummet, by the group buying business impact, such as multiple bad news constantly, coupled with the once high profit growth myth dashed, let these overflow words appear feeble.

At the same time, the former overlord of online tourism is becoming more and more unwieldy, and where to go, art dragons, Taobao, mangoes and many new apps such as tonight's hotel specials.

12 years ago in 2000, the internet bubble made Ctrip a blessing in disguise, completed the operation of the online business landing. 12 years later, in the downturn in the economic situation and the new world of mobile Internet, it can again turn the crisis for the machine?

Growth myth dashed share price tumbled

As the leader in the online tourism field, why does Ctrip throw in a 300 million dollar share purchase?

In general, repurchase stock is to stabilize the share price and give investors confidence. Ctrip's move is also based on the same considerations: the current slump in capital and the undervaluation of corporate valuations.

In the past two years, the price of Ctrip almost all the way, as of June 14 this year, Ctrip's share price fell to 16.47 U.S. dollars, and two years ago, the highest price of 52.15 U.S. dollars, down 68.4%, if the beginning of March this year to carry the highest price of Ctrip to 27.75 U.S. dollars, 3 months, Ctrip

But in the same capital environment, as the main opponents of Ctrip, Art Dragon's share price for two years the overall trend of growth, two years ago, the Art Dragon stock price of 12.95 U.S. dollars, as of June 14 this year, its share price of 11.92 U.S. dollars, almost flat, nearly 3 months fell nearly 20%, the decline is only half of Ctrip.

In the outside world, Ctrip's share price fell, in addition to capital market factors, mainly the decline in performance.

As domestic OTA (online travel agents) of the leading enterprises, Ctrip sat in the dominant seat for nearly a decade, but its net profit growth from the third quarter of 2010 year-on-year increase of 73%, all the way down to the first quarter of this year's year-on-year decline of 28%, and seven consecutive quarterly growth rate of decline, as shown in the following figure:

The figure is the net profit increase change of Ctrip in recent three years

The collapse of the myth of high profit growth has become a major cause of the fall in its share price. Industry insiders pointed out: the reason for the loss of profit margins, the main reason for two:

Firstly, it originates from the heavy mode of Ctrip's own strategic positioning. Ctrip provides business including hotels, air tickets, vacations, food, travel and so on, and the construction of super large call center, investment line hotels and travel agencies, is said to be a full bloom in many areas, becoming more and more heavy, but its diversified business has not ushered in a full-scale outbreak.

Second, the industry has changed days, especially group purchase and mobile end of the new mode of clustering, so that Ctrip's own users have been diverted.

Since the first quarter of 2011, Ctrip's hotels, air tickets, holiday tourism, travel services, revenue growth has gradually slowed.

Among them, the Hotel field, Art Dragon, where to go, Taobao and so on constantly encroach on the share of Ctrip. In the Air ticket field, Ctrip is where to network streaming, and call center has become ctrip to maintain the burden of profitability, and in the first quarter of this year, Ctrip for investment such as home loss of 18 million yuan.

Tonight Special Hotel founder Jinxin said: "In the hotel and air tickets, the seller (hotel) The more dispersed, the buyer (the reservation) the more the lack of information, intermediary (Ctrip) the more favorable."

"Nearly half of Ctrip's share comes from the phone, but now the telephone book is changing to the Internet and mobile internet, the future hotel is more and more concentrated, the reservation through various end access to the hotel information channels more and more, orders more and more dispersed, and large sellers (chain hotels, airlines) are increasingly inclined to contact the buyer directly, Intermediary Ctrip on the hotel and user demand for the control gradually weakened. ”

All this makes Ctrip's beautiful castle (high net interest rate) lacks a moat wide enough to guard.

In addition to the traditional territory by the diversion, group buying and mobile app The rise of encroachment, become Ctrip development on the road of new opponents.

For group buying, Art Dragon, Taobao preemptive, Ctrip is not tempted. For Ctrip, do not do group buying, can guarantee a high commission, but the source and hotel resources will be a large loss; Do group buying to keep a certain source, but lost the Commission. It is understood that the Commission profit margin of about 30%, while group purchase less than 10%.

According to the art of the data released, December 2011, art Dragon Group purchase hotel breakthrough 100,000 Nights (hotel room occupancy number of days), ranked first, is the same time in the hotel group purchase volume four times times.

Ctrip in the first quarter of this year's results, carrying Cheng Fan Min also said: "Group buying is not important, but a supplement, will not put more power." ”

Art Dragon CEO Cui has said: "Simple to do is not to make money, but in the great ecology of Art Dragon, because the original operation, sales, service personnel and resources can butt-buy business, make profitable, and can rob users." ”

"In the battle with Ctrip, buy into a sharp weapon, although small, but sharp." Shei Shen, chief Operating Officer (COO) of the art Dragon, stressed.

In the face of the potential power of group buying, Ctrip finally hold live! June this year, Ctrip passively announced the big force to kill the league to buy, and at the hotel group buy 10 percent of the group purchase discount again direct minus 10% "naked sell".

But the opportunity has been missed. And, under the low price strategy of nearly 0 profit, Ctrip will have a lot of commission loss.

In the purchase of a station, Ctrip lost the start, the future, has awakened Ctrip can "0 profit" to recover a bureau, or an unknown. But will the leader of the Art Dragon give Ctrip a chance?

In addition, the last two years, tonight Hotel specials, Flight butler, hotel housekeeper and other types of independent app in the ascendant, and the original opponents to where, art dragon, Cool News also launched mobile phone end. Mobile apps occupy a place with the rise of demand at any time.

In the mobile internet era, as drawsomething, Instagram, the rise of the Giants are difficult to monopolize all the ideas, and the original PC-side business model of the core competitiveness will be redefined, Ctrip's traditional advantages of the mobile Internet is difficult to continue.

Jinxin once told Tencent Technology: "In the mobile internet field, the Matthew effect is obvious, as long as the product demand, the more the application of the former growth faster, Apple and other application stores will be weighted to the new application, to encourage the product, will not because of Ctrip's brand preference." ”

A turnover of Ctrip insiders said: "The mobile internet era quietly coming, booking channels, marketing tools and user booking habits are changing, but Ctrip really exerting force later." And because the pattern is more and more heavy, it is difficult to quickly transform, and the wireless domain investment is insufficient, has given many mobile manufacturer development opportunity. ”

In reality, Ctrip is not idle. Because the hotel order mode, no need for logistics distribution, payment system is also more perfect, the only key is the channel and flow. Previously, Ctrip through the upstream hotel cooperation, from the channel end to block some of the emerging mobile app into the bureau. But these apps take alliances tactics and combine Ctrip's opponents to defuse them.

In addition, some hotels are unwilling to give up many mobile app channels. And in terms of user satisfaction, "all-inclusive" in the mobile end is also difficult to resist the "special and refined" of the subdivision of the area of food.

By February this year, Ctrip set up a special independent wireless division, the recent Alliance Cool News, and rely on powerful hotel resources to exert wireless end.

At present, the mobile Internet in the field of tourism has not yet appeared big winners, all kinds of app blossom, Ctrip and each family can not form a larger competitive barrier.

In Flight Butler CEO Wang, many mobile apps are small companies attacking state, with a point of attack, chasing faster. And the big company Ctrip is defensive, slow response, but the pursuit of comprehensive, mainly to the site content to mobile phone, service to old users, new users are many small companies interception.

"But you must not underestimate the power of Ctrip in the mobile end, they continue to profit, have sufficient resources, in the mobile Internet domain is still a super player." "The next year will be a year of melee warfare around the mobile end, and for many mobile app players, the key is to be on top of the industry and not be out," Wang said. ”