Online tourism market distribution potential to be excavated, the influx of capital will trigger a price war

Ali Baba announced 28th that it would upgrade its aerospace division to a group of airline companies and launch a new brand "go." As you can tell from the public news, "go" will focus on the needs of consumers for vacation travel, and media reports say, "Go" on the platform on the existing tens of thousands of sellers to provide sales, hotel reservations, visas and other services.

The reason for the new brand, Alibaba said, is to take into account the great potential of the online travel market. However, this raises a new question for the industry: Relying on Alibaba's existing resources, "go AH" will bring changes to the industry opportunities?

"Taobao trip from Taobao split out, but not too much impact on the market." Split out of Taobao travel may be professional, brand identification more easily with Taobao, but may lose brand endorsement and flow import support; and, Taobao travel market share, operating mode has been basically stable, so it is difficult to have any impact on the market. Coo Panjin, a green mango, said in an interview with the Securities daily.

Online distribution potential to be tapped

Data from the green Mango show that the company is Inn, Cyts market booking industry leader, and with the rapid development of domestic self-help tourism in recent years, the consumption characteristics have been evident, young tourists more welcome to diversify products, such as inns, Youth Brigade, family hotels, accommodation, short rental, apartments, To this kind of product investment scale increasing year by side confirms the accommodation individuation big development present situation. "The accommodation unit has increased from 300,000 to 500,000 from two years ago, so more platforms like green Mango are needed for distribution, increasing occupancy and online penetration, so that the market can be healthier, service levels and management levels can be further enhanced." "Panjin said.

And on the lemon Mango can get the status of the market leading position, Panjin that this is based on advanced operating mode, professional ability and industry for many years of accumulation, to reduce operating costs, improve the information capacity of the Inn and operating services, a step to the pub market bigger. "We are optimistic about the Chinese pub market and free accommodation market, the future will further increase the deep digging this market." In this situation, for the spin-off of Taobao Travel, "Green mango Welcome, the domestic current small and medium-sized Inn about 500,000, while the line can be booked less than 20% of the inn, the future there is a lot of development space, the market needs to be cultivated together." At present, Ota mode is still the mainstream of the market, is the main source of customers, although direct sales these years have a certain degree of development, the source is more diversified, but a short period of time is not a company can change, welcome more professional companies to join the market for fair competition.

A flood of capital will trigger a price war

In addition to Alibaba's High-profile entry, online tourism in this year's mergers and acquisitions situation shows that more and more companies show a strong interest in the industry, some listed companies announced in the form of mergers or acquisitions into the field.

In this regard, Panjin that, when a large number of capital into an industry, the competition will certainly be more intense, homogeneous more serious, user access costs will certainly be greatly improved, the price war is inevitable, the last breakthrough only those intentions to do a good job products and services companies.

"Listed companies through mergers and acquisitions to enter the online tourism, indicating the bullish market." Through mergers and acquisitions will not increase the number of industry participants, more capital level. The massive influx of capital into the online tourism industry is sure to drive rapid growth and model innovation, including the elimination of a group of less competitive companies and the emergence of a new breed of companies. However, this key depends on the Chinese tourism industry is not a driving role in the tourist travel experience is helpful, if there is the greatest value. "Panjin explained.

At this stage, Green Mango focus on continuing to the inn, Green Brigade Market to do the first, and by entering the localization of the depth of the tourism market to meet the needs of users increasingly diversified. Of course, "we will also consider whether it is possible to help more pubs expand in size, specialization and linkage through the way of supply chain finance." 2012, we took the lead in the industry to carry out a reservation hotel + insurance business, which is our tour of the financial market a small trial, but the premise is how to better improve customer service, in the tourist experience to ensure that the future will certainly introduce more financial services. Panjin introduced the road.