Art Dragon Death knock Ctrip Low price marketing: Some hotels fall into a pricing dilemma

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In Ctrip (CTRP. NASDAQ, which has launched a "Double price guarantee, 3 times-fold promise", has ended an art dragon Travel network that has been unprofitable for 10 years (long). NASDAQ) began to get a high profile.

Yesterday, the Art Dragon Travel network in Beijing said publicly, to book online and stay in the hotel's consumer commitment, as long as the price than Ctrip, Art Dragon will take the initiative in accordance with the principle of 3 times times the difference in cash return.

The promises made yesterday by the Arts Dragon include proactively troubleshoot and publish a list of hotels and spreads that are priced above Ctrip, for successful online bookings that are merged into these hotels, and even announce the form of cash return and the time limit-"within 5 working days after Checkout"-and return directly to the customer's "Cash Account" in the Art Dragon.

6 days ago, Ctrip just announced its low price guarantee: Today, consumers through the online booking in China hotels, Ctrip to ensure the lowest price. Also in the network booking conditions, Ctrip to ensure that the domestic hotel prices are the lowest, otherwise pay 3 times times the cash difference.

The industry's evaluation of Ctrip's move is intended to further control the hotel terminal resources, and to further enhance its industry leading position.

But the speed of the art dragon, perhaps more than Ctrip's imagination.

It is reported that if the consumer found that any site price below Ctrip, must be successful in other sites to book and submit evidence on the Ctrip, and must be successful in Ctrip booking, Ctrip to pay 3 times times the difference.

"Art Dragon NET supports to the consumer's low price pledge, but does not agree this to leave the trouble to the consumer, brings the chaos to the hotel practice." Cui, CEO of the Art Dragon Travel Network, said yesterday, "from today, as long as consumers in the art of the successful booking of the hotel, found that there is a lower price, do not need to do anything, we will immediately carry out 3 times times the cash return of the difference." ”

At the beginning of this week, the Arts dragon has been in China signed the price of more than 10,000 hotels, found that only less than the total number of contract hotels 1% of 90 hotels in some room prices than Ctrip quotes.

And the analysis that, because it has achieved with the holding company, the world's largest online tour operators Expedia back-office hotels docking, art dragon in this area of control and implementation will be more advantageous.

More than that, 4th this month, the Arts Dragon released 2009-year earnings show that it has ended 10 years of unprofitable predicament, ushered in the first full profit of the fiscal year-perhaps, finally "out of poverty" of the emboldened, let Art Dragon began to open to the industry boss to challenge the courage.

For the art of Dragon practice, Ctrip said no response and evaluation. But it also said it would perform its previous "double Low price guarantee, 3 times-fold commitment". Ctrip said that the reason for such a pay promise, in order to standardize the market, not to allow some channel reservations to the team to sell the hotel rooms to the scattered guests.

But some hotel industry reflects, Yi Long and Ctrip are years old rivals, they so "die knock" the other side of the low-cost approach to the hotel side is very difficult. At present, art Dragon and Ctrip in the country have more than 10,000 cooperative hotels, which inevitably have with two of the hotel, this kind of hotel will face to whom the lowest price confusion, especially Ctrip has always been strong, the hotel in the pricing will be very difficult.

In recent years, China's online tourism has grown rapidly, according to CNNIC statistics, 2009 online travel booking users reached 30.24 million, an increase of 77.9%, travel bookings from offline to network transfer trend is increasingly obvious.