Online travel rush Price bet the future

Absrtact: The rich and wayward online tour operators (OTA), opened a new round of price war. Industry boss Ctrip announced 500 million yuan into two 12 promotion, Art Dragon, where to go, and so also quickly follow up, a sworn price war to fight the end of the situation. Burn money to rob

"Rich and Wayward" online tour operators (OTA), and opened a new round of price war.

Industry eldest brother Ctrip announced 500 million yuan into the "double 12" after the promotion, art Dragon, where to go, and so also quickly follow up, a sworn price war to fight the end of the situation.

Burning money to rob the market behind, is the OTA enterprise profitability of a sharp decline. Analysis said that the four-quarter domestic OTA industry will be "full access to the era of negative profits." The highly active OTA industry is experiencing the most brutal price scuffle ever.

Price Melee

"This is not a new price war, the price war has been there, ' double 12 ' is only part of it." "Ctrip senior said that from 2013 three to 2014 three quarter, Ctrip cost about 1.5 billion yuan to invest in promotion."

Ctrip's latest results also confirmed this, its only in the third quarter of 2014, the investment in sales and marketing costs that amounted to 97 million U.S. dollars (about 600 million yuan), up 69% year-on-year, up 25%. The main reason for the rise was the increase in marketing-related activity, according to the report.

"Competitors are burning money to rob the market, Ctrip do not do, the market share will inevitably be lost." "Powerhouse information general manager Wei Changren said that the current domestic OTA market, competition is becoming more and more serious, market share of competition has become a service and price competition, and to achieve better service or lower prices, these are inseparable from the money."

At present, the domestic OTA market, the company's most indispensable seems to be money. November 2013, where to go listing on the NYSE, and in May 2014, the bull landed on Nasdaq. Plus the previous Ctrip and art Dragon, the domestic listed OTA Enterprise already has four. Wei Changren said that, coupled with domestic industrial capital in recent years also very optimistic about hotels, tourism market, even the current small OTA enterprises, there is no lack of financing channels. These enterprises to finance the only task is to use the shortest time to do the market share.

The user to the price is extremely sensitive OTA profession, the market share's advance and retreat and the promotion intensity is closely related. In recent years, to the same process as the representative of the rise of small Ota, diverting a large number of tourists, but also to Ctrip, Art Dragon, where these leading enterprises brought great pressure.

Ctrip, the art Dragon also announced to join the "double 12" of the melee, its flagship Low-cost hotels, and divided into PC-side and wireless channel, the former let 90%, while the wireless end almost to "0 profit" back to cash promotions. Where to go the strong response said that will be through lower operating costs and Ctrip to fight price war. In addition, the way cattle, the same process and so have been released "double 12" promotional products-price battlefield has long phone-in diffuse.