Art Dragon Two quarter now 76.1 million huge loss

Absrtact: Online tourism industry, the second top of the art Dragon Net, yesterday handed over the two quarterly results did not bright eyes. With the Hotel book volume growth of 58%, hotel bookings revenue growth of 29% year-on-year good news produced a strong contrast, the arts dragon two quarter loss as high as 76.1 million

Online tourism industry, "the second top" of the Art Dragon Network, yesterday handed over the two quarterly results did not shine. With the Hotel book volume growth of 58%, hotel booking revenue growth of 29% per cent year-on-year good news produced a strong contrast is that the arts dragon two-quarter loss of up to 76.1 million yuan (the same below), following a quarter after another huge losses. It is worth mentioning that, in the face of huge loss figures, Yi Long network has no positive response to the introduction of measures. In the industry, the price war dragged by the art dragon is falling into the mire.

Earnings showed that the second quarter net revenue of about 234 million yuan, an increase of 27%, net loss of 76.1 million yuan, from the surplus to loss. The analysis argues that the loss of the art dragon comes mainly from the drag of the online tourism industry's price war and the cost surge caused by the wide range of marketing. Yesterday, in the face of the industry's doubts about its continued losses, the Arts Dragon said there is no positive response to the issue, talking about the financial forecasts for the three quarter this year, the Arts Dragon also said it will continue to maintain losses.

According to the Art of the Dragon, at present its availability concentrated in the budget hotels and inns and other small profit margins, the control of the business hotel is relatively few. Art Dragon CEO Cui said, in the domestic 50,000 contract hotels, more than 4 stars of the hotel only 10,000. According to earnings figures, the overnight growth of the art Dragon reached 58%, while net profit fell sharply. According to earnings figures, the company sold 16 million nights a year, the equivalent of 3 cents per night.

Such a rise in the number of nights is not making money, which inevitably causes the industry to question the sustainability of its profit model. In the view of an online travel website operator, the Art Dragon is currently the main hotel reservation, hotel group buying has become its core plate. But the profits of the group buying business are very weak and should not be the main model of its profit. Powerful Consulting CEO Wei Changren that the art Dragon Hotel Night hair profit is low, from its business hotel to control weak. According to statistics, a business hotel rooms can give art dragon to bring 60-70 Yuan Commission, and a budget hotel or guesthouse rooms, can only give the art dragon about 20 Yuan commission.

In the industry's view, the huge loss of the art Dragon is directly related to the price war that the online tourism industry has lasted for nearly a year. According to the data, the Arts dragon only earned 500,000 yuan last year. After a year of price wars, the online travel market is expanding in size, but at the same time, corporate profits are shrinking. Yang Yanfeng, a researcher at the China Tourism Research Institute, believes that the big loss for the art dragon stems from being forced to spend a lot of marketing money to maintain the industry rankings. According to the data from the Eric Consulting, the two quarter of this year, Ctrip exclusive online travel OTA market 48% market share, Art Dragon as a runner-up, in the industry accounted for 9.1%. And after the art dragon, including the same process, the number hundred business and other businesses are eyeing.

So while the art dragon has realised that it is hard to be loyal to customers who are attracted by low prices, Cui has no intention of stopping the price war. In the industry, although the price of online tourism has not stopped, but Ctrip has shown a price war to control the ability to grasp the initiative.