China's tourism industry started the ticket price war in Ctrip

Xia Bing from each reporter by Shanghai

In 2014, the tourism industry in China started the ticket price war in Ctrip, and the competition for online travel changed rapidly and was staggering. The mid-year approaching, this "commercial war drama" climax after another: Ctrip and the same network together "encirclement and suppression" where to go, while shelves put where to go tickets and intimate holiday search. Despite the OTA competing carnival, the result is a big surprise, but now has formed Ctrip + the same way, way cattle where to go, eLong tripartite potential, the entire online tourism will have far-reaching impact.

Over the past two or three years, the online travel industry is truly lively, eLong travel network, where the network into the industry investors; Ctrip heavy distribution of mobile Internet; where to network, the way cattle have to the United States market ... ...

In 2014, the tourism industry in China started the ticket price war in Ctrip, and the competition for online travel changed rapidly and was staggering.

In an interview with the "Daily Economic News" reporter, CEO Jin Changren said that the online travel price war has been going on for nearly two years since July 2012, and now the form of "war" has changed from being war of attrition War, the price means has lost its strategic significance, as a means of conventional competition. After 2014, online travel companies are beginning to change their single dependence on price as a development-driven strategy and into a round of "arms race" with the acceleration of "technology and equipment," "expansion of the military," and "alliance." So, it is foreseeable that within the next 3-5 years, driven by capital, the online travel industry camp will be clearer, the resources will be more synergic and the competition will become even more intense.

shock

Big Brother "back carbine" to regain the industry share of half

In 2014, the opening ceremony of OTA (online travel service agency) started under the elaborate "premeditation" of Liang Jianzhang, who returned to Ctrip as chairman of the board of directors in early 2012.

At the beginning of the reunification, Liang Jianzhang faced the situation where the performance began to slide down and the location of the industry leader was in jeopardy. To go where the representative of the tourism vertical search, began to threaten the diversion of Ctrip flow advantage; eLong also found a breakthrough, focus on power hotel reservations to push down the solid walls built Ctrip. Not only that, with the rise of the mobile Internet, many flies to online travel apps that use airline tickets, travel guides and travel destination services as an entry point, each of which looks like a crap with Ctrip.

Even more serious is that BAT the three major Internet giants have also acquired, shares of the way to join the online travel battlefield. Ctrip's growth rate started slower than those rising stars. According to public figures, Ctrip, which used to occupy more than 50% of the OTA market in the past, fell below this value for the first time in 2011. In the same year, Ctrip's revenue grew by less than 20% Its revenue growth in 2010 was 45%.

In this situation, Liang Jianzhang choose to migrate to the mobile terminal transformation strategy. In addition to betting mobile terminal, in order to change Ctrip to the outside world to leave a large but not finer impression, Liang Jianzhang also decided to invest way intensive. In the first quarter of 2014, Ctrip invested heavily in investment in high-end apartments, making its way into the North American market with its wind power network and investing in easy-to-use vehicles and one-car rental docking. The product types were expanded.

However, more important for Ctrip is that it regained more than half of the market share. Statistics from iResearch indicate that in the first quarter of 2014, the transaction scale of the domestic online travel market was 56.42 billion yuan, an increase of 16.9% from the same period of last year and a decrease of 0.8% from the previous quarter. Ctrip ranked the first with 51.9% share.

Ctrip deep pillage, so that opponents increasingly feel uneasy. But even more terrible is that Ctrip began to continuously conclude the alliance. On April 10 this year, Tongcheng Network announced the signing of a strategic cooperation agreement with Artron. On April 29th, Ctrip announced that it will enter into the same network with 200 million U.S. dollars, The same way an independent IPO. Ctrip then announced on April 27 an agreement with Touyou to acquire the 15 million U.S. dollar worth of Touyou at the IPO price.

May 20, Ctrip and the same network together "encirclement and suppression" where to go, where to put the shelves in the tickets and intimate holiday search. Ctrip said the reason is to go where traffic is less than expected; then, where to stand up and respond to their own voluntarily shelves the "two-way" ticket resources, and orders not drop down.

Where to go Where the network In response to the "Daily Economic News" reporter's reply, "Previously, Ctrip and the same network is not connected to the SaaS system, and there is duplication of tickets with other suppliers of tickets. Two slightly larger suppliers Moved, it is just for many small and medium suppliers to create more opportunities.

For where to go, Ctrip and the same process together will not make their life better. But more memorable than this and Ctrip has been uproar of a "ambiguous love."

Reporter was informed that last month, Ctrip and Baidu Holdings where to go, fell into mergers and acquisitions rumors. Without the recognition of both companies is that Ctrip where to go out the terms of the acquisition is the two sides merged by 100% conversion, the conversion ratio of 1: 2. Once the agreement is reached, where to delisting, the company merged into Ctrip. However, where is likely to have refused Ctrip conditions. Both CEOs "leave room for response" to the rumors of mergers and acquisitions, both of which are prepared to act individually but are unwilling to bow to each other. Both parties want to be the absolute winner of online travel.

"For several months, the scandals surrounding many enterprises such as Ctrip and Dangzhou have been confirmed. Some have been confirmed as facts and others have not yet been clarified. This shows that all enterprises and the capital behind them are making various alliances (Investment) attempt. "Wei Changren told reporters, carefully combing, it can be seen today's" carrying contract "official members already include Ctrip, the same way, way cattle, 7 days hotel, Hanting Hotel, Home Inns, Tujia, Inn Housekeeper, very accurate, easy to use car, a Hi car rental, metropolis travel agencies, Hong Kong Hua Min travel, Hui assessment network, way network, public security online insurance, travel too beautiful, cicada travel, Wing On Travel, easy to travel network and the soft Taitai, can be described as considerable size.

New favorite

Capital feast rising star menacing

The Internet is still in an age of rapid change. Innovations in the online travel industry are endless, and the new business model of rising stars is even more pocketed.

"Daily Economic News" reporter noted that the recent successful landing on the Nasdaq-way cattle network shares strong performance, the stock market doubled a month, an invincible momentum. The way cattle CFO Yang Jiahong is more bluntly, "grab is the traditional travel agency line business."

Way cattle are exploring the inventory of travel inventory sales, the introduction of a replica version of the "only product will" sale model. That is, through a travel Internet platform to integrate the traditional travel resources to attract low-cost Wei Yao consumers patronize, focusing on those who like to travel, price-sensitive, time-consuming users.

Analysis of the industry, way cattle take a personalized route, compared to other OTA, way cattle hope to avoid the same Cheng and Ctrip advantages of the project, instead of "Blue Ocean" Weihuo tourism products force.

Yan Haifeng COO Yan Haifeng said that in the planning of the way network, the biggest strategic significance of the sale is to promote incremental market, increase user stickiness, and thus diversion of other products on the way network, the formation of a seamless flow of business, at the same time get through PC and mobile terminal.

Interview, the reporter found that nearly three months, way cattle travel website traffic and brand influence showed a steady upward trend. With the gradual buildup of cattle network market status, with its belong to the second camp with the same network, ant cell and donkey mother, etc. are also increasingly subject to market concerns.

As for the same halfway network in the first half of the OTA clinging drama, it staged a "plot against hostile Ctrip for a few years in a matter of days but only one day."

Tongcheng and art dragon talked about a few years of cooperation, but failed to sustain more than a month honeymoon period. This once again confirms the classic phrase: there is no eternal enemy, only the eternal interests. The same way network CEO Wu Zhixiang recently interviewed by reporters said that the newly formed board of directors has a new stake in Ctrip, with the same venture team, Tencent side, Boyu capital and Yuanhe capital. In addition, the same way plans to restart the IPO within two years.

When Ctrip became Tongcheng two shareholders, everyone thought that the pattern of "Three Kingdoms for Tickets" between donkey and mom who focused on the field of tickets would disappear. Recently, however, with the new alliance where the donkey and mom reached a new alliance, the new pattern of the ticket market changed the smell of the "new round of ticket price war".

Menacing newcomers, is bound to be divided into the original very competitive online travel market traffic. China IT Research Center monitoring data show that in April 2013, there is no doubt that there is no doubt that the veritable traffickers to 666 million UV traffic accounted for 35.71% of the five online travel sites the proportion of Ctrip followed where, the proportion of traffic Up to 24.77%.

However, a year later, this set of data completely deviated from the public's expectations. In April 2014, the top five online travel brand websites visited the same page with 36.63% of page views, while the proportion of en route visitors reached 27.70%, both of which exceeded 60% of the total. Where to go and Ctrip page access rates were 13.39% and 13.57%.

In this regard, China IT Research Center concluded that the concentrated outbreak of mobile Internet to some extent weakened the PC-side traffic, but in the current transition period, PC-side data is still the main force supporting performance. Ctrip and where the decline in traffic to the way cattle and the rise of the same way to bring more opportunities, and Ctrip preemptive with the same way, way cattle alignment, making where to go quite passive.

New battle

Heroes hegemony price war into "arms race"

In this well-competitive market, reporters noticed that challenges are becoming more diversified. Currently, IResearch divides players in this industry into two broad categories: online travel deals and online marketers. The former can be further divided into five categories: traditional OTAs such as Ctrip and eLong; emerging OTA based on market segment represented by donkey mother and way cow; online shopping platform vendor represented by Taobao; three telecom operators; As well as by B2C operators develop B2B tourism operators, such as the same network and Huitong world.

Wei Changren believes that the online travel price war has been changing from consumption warfare to conventional warfare since July 2012 and now nearly two years ago. Now that the price measure has lost its strategic significance, it has only become a regular competition means.

He said that according to the first quarter 2014 OTA three giant earnings report, we can find that in the new round of market share battle, each has to pay a heavy price. Ctrip profit decline, where to expand losses. However, the three companies are also gradually moving away from this race: where to go in the first quarter of 2014, total revenue of 335.5 million yuan, eLong total revenue of 263 million yuan, eLong in the hotel and air tickets two traditional main business Bookings and revenue growth is much lower than Ctrip and wherever, at the same time, the lack of holiday business and the mobile side of the weak, eLong dilemma.

"After 2014, with the rapid rise of the mobile terminal, the rapid increase of online penetration rate and the increasingly complicated competition pattern, the online travel enterprises represented by Ctrip and Ctrip are beginning to change their single dependence on price as a development-driven strategy." Wei Changren Said that the main manifestation of the new round of "arms race" has shifted to speeding up "technology and equipment", "expanding the army" and "forming alliances."

First, in the "technical equipment", earnings report, Ctrip first quarter of 2014 product development costs 441 million yuan, an increase of 65%, up 32%. Where to go In the first quarter of 2014, R & D spending was RMB123.1 million, an increase of 116.8% over the same period of last year. The expenditure on product channels was RMB38.9 million, an increase of 358.2% over the same period of last year. ELong, Tong Cheng, donkey mother and Taobao travel and other efforts in this area are also increasing.

Second, in order to achieve rapid growth, all enterprises need to rely on technology-driven products to increase their manpower. Therefore, "expanding the army" has become the second means. Reporter noted that from the second half of 2013, Ctrip has been removed to push the team re-formed, set up a ground service division, but also the group purchase business from the department to the business unit, as of the end of 2013, the total number of Ctrip employees have been Up to 23,000. Where else, as of March 31, 2014, there were about 3,869 full-time employees. Given the rapid growth in staff size, there is still room for more growth in the number of employees in both companies.

Third, mergers and acquisitions in the capital markets are driven more by capital rather than by model. Therefore, the "alliance" has become a crucial step towards vertical integration in online tourism.

Wei Changren said that "Bringing Organization", "detention organization", "Amoy organizations" and "Penguin Tourism Organization" are large clan alliances.

In order to create a "dating organization" as soon as possible, in March 2014, where to announce the appointment of Zhao Yiru as the company CSO (chief strategy officer), will be mainly responsible for where NetEase related activities in the capital market, including investor relations and mergers and acquisitions In addition, Baidu is also going to go to GrabTaxi, the largest mobile taxi application company in Southeast Asia that just went there on June 3, according to the analysts. Where to go Is interpreted by the industry as "the first step toward internationalization" and more new members will join in the future.

Mergers and acquisitions are another winning magic for BAT. Alibaba also accelerated in the past two years the layout of the tourism industry chain, the current "Amoy treaty organization" has begun to take shape, its members include: Taobao travel, the US group network, high Germany map, a Amoy network, poor travel network, Bai Cheng travel network, Aslan business trip on the road and so on.

觊 觎 Online travel market for a long time, the strategic position in the card and there is a decent Tencent. As an early online travel giant layout, today's Tencent "Penguin Tourism Organization" includes: eLong, Tongcheng, Jingdong Business and the public comment network.

"It is foreseeable that in the next 3-5 years, the camp of online travel industry will be clearer under the impetus of capital. Whoever can really control the upstream resources in today's online travel industry is the ultimate winner. However, control is not a single dominant Monopoly and suppression, cooperation and win-win is the theme of development in the future, OTA is expected to be in the resources of the synergy will be more in-depth, competition will be more intense. "Wei Changren said.