Art Dragon hand over report card, net loss increase in industry expected

Yi Long Travel Network (hereinafter referred to as "Art dragon") finally handed over 2013 of years of transcripts, the results also early in the industry expected. Yesterday, Art Dragon Net released 2013 annual report showed that net loss amounted to 168 million yuan, it has been proud of the hotel guest room night number of growth advantages also gradually lost.

The industry generally believe that for the Art Dragon, the annual report is a very dangerous signal, if not effectively resolved, then the market value of the art Dragon will be slowly lost.

For the loss of the year, Art Dragon CEO Cui said that this is mainly affected by the hotel reservations in the field of price war, and brand promotion costs high marketing expenses.

The growth in the number of guest rooms that have been in the leading position has slowed, Cui think there are two major reasons, one is to go where the network, the United States and other websites began to force the hotel group purchase business, the 2013 group purchase market competition more intense, originally as Art Dragon Hotel reservation a large increase power of the group buying business, has now gradually dragged down the art dragon. Second, in marketing, the past Art Dragon Hotel online marketing is mainly dependent on Baidu and where to go to the network, with the transformation of where the network, art Dragon from where the network and Baidu to obtain the flow of conversion has slipped.

Since the first quarter of last year, where to go to the net for the Art Dragon Hotel sales have dropped from 10% to 5%.

The Arts Dragon earnings show that last year four quarter hotel guest room night quantity growth rate is 48%, the hotel reservation business net revenue growth rate is 25%. This data is already below Ctrip 55% and 37%.

In the eyes of an online tour operator, this is also the last two years of Art Dragon and Ctrip Scramble Hotel reservation business, art Dragon Hotel guest room night quantity growth rate for the first time less than Ctrip.

There are signs that the Art Dragon, which focuses solely on hotel bookings, has become increasingly powerless. In the team Consulting CEO Wei Changren View, the current art Dragon is in a tiger's state, if the art dragon is still being dragged down by price, and no new coping strategies, the prospect of fear is difficult to optimistic. However, Cui does not intend to change the current business strategy, and said that the future of Art Dragon will continue to focus on only the area of hotel reservations, to become the country has the most hotel reservation resources, and the most affordable platform for the goal.

Art Dragon will provide users with more choice of hotels, strengthen the price competitiveness of hotel reservations, do a good job of user experience and marketing, and strengthen the development of mobile end.

Finally Cui also confessed their helplessness, it said that the online tourism leading enterprises Ctrip selected "One-stop service system", then followed by the art dragon must be in the market positioning and Ctrip to make a distinction.

At the same time, Cui that the future second-line internet companies to Baidu, Ali and Tencent three giants have become the general trend, lost a lot of traffic in Baidu Art Dragon, I hope that the second shareholder Tencent relies on micro-letter on the mobile end of the hotel booking guide for the art of the traffic.