Ctrip announced a 500 million dollar throw, a one-year low price promotion since July this year

Absrtact: Cat (Micro-bo), Suning easy to buy (micro-bo), Jingdong Mall, several electric platform between the price war has not been light, online tourism market and ignited the beacon. Ctrip announced a 500 million-dollar throw, a one-year low price promotion since July this year. Ctrip Desire

Cat (Micro-bo), Suning easy to buy (micro-bo), Jingdong Mall several electric platform between the price war has not been light, online tourism market and ignited the beacon.

Ctrip announced a 500 million-dollar throw, a one-year low price promotion since July this year. Ctrip to set off the online tourism market price war tide, but in some people's eyes, ctrip price war can continue to see the supplier's face.

Ctrip was forced to do

500 million U.S. dollars is ctrip since the establishment of 12, the largest promotional, is its annual marketing funds nearly 10 times times. But Ctrip's opponents are not to be outdone: where to go to the net announced investment 30 million U.S. dollars to create a tourism intelligent service platform, free to all travel online suppliers open; With Cheng 90 million, into Ota (online travel agents) Mango Network announced the investment of 80 million yuan for cash subsidies, in addition, Leisurely Tourism Network CEO Li Daishan to "it Times" reporter revealed that next week, leisurely will embark on the 8 anniversary celebration activities, let 80 million yuan.

And the old rival art Dragon's attitude is direct: "Although we are not the first to launch a price war, but since the price war, we will fight to the end of the blood!" Art Dragon CEO Cui is in person, in micro-blog shelling Ctrip: "threatened to and art Dragon dozen price war Ctrip, please put horse over." ”

Introduce, dean of the Interactive Marketing Institute, told the IT times, "price wars often hurt 1000 of their own 800, so price war will inevitably lead to further thinning of the profit of Ctrip." "Rather than having the same view, Li Daishan, CEO of the Tourism network, said it was an act of Ctrip consolidating its position in the online tourism market," a lot of these new businesses, coupled with app apps, carry more ingredients in the fear that the partnership will be challenged. "Li Daishan that this level of marketing investment can filter a certain number of emerging enterprises, reduce a certain degree of competition."

According to the data provided by Iris, Ctrip's share of the online travel reservation market in China has fallen from 51.6% in 2010 to 41.1% in 2011, down 10.5%. In the past two years, Ctrip's share price has dropped to $15.37 trillion, down 70% from the 52.15 dollar peak in 2010. This is also the direct reason that Ctrip is eager to consolidate its market position and out of this marketing means.

But the price war is a cup of tea for Ctrip, whose earnings in the first quarter of 2012 showed a balance of $819 million trillion in cash and short-term investments, compared with 30% per cent in the first quarter of the year to 18.6%. "If you lead a price war for a long time, it's not a benefit," Li Daishan said.

Cool News Travel CEO Haijun that today's price war is due to the past Ctrip's high growth rate and high profit margins brought about by the result, now may be the return of rationality, the market tends to mature performance.

The price war is not your own.

"Ctrip is the main ticket + hotel model, tourism products for it does not have a special advantage," Li Daishan bluntly. However, ticket bargaining space is limited, the price is dominated by airlines, each travel site has no absolute advantage, "but the hotel has a lot of space, will be Ctrip compressed product price of the main project." ”

Introduce told reporters that star hotel a set of mature management system and distribution channels, such as Ctrip, Yi Long, with the City network Ota (online travel agents) platform and tonight special hotel, flight butler, etc. with hotel reservation features of the new app is not the hotel's main partner, "contracted enterprise customers, Subscribers to their own websites, as well as a large number of front desk customers are the hotel's larger service groups, and OTA and other platforms of cooperation is more to make up for the off-season vacancy. ”

"Group buying hotels, especially the four-star hotel sales relatively good, but they do not have OTA and other platforms for special reservations system, most of the Commission model." "said Eric Kingston, a consulting analyst.

According to "It Times" reporter understand, the hotel to OTA commission generally in 10-12%, generally less than 60 yuan will be in accordance with 60 yuan. If the price is 550 yuan a night, according to 10% is 55 yuan, often in accordance with 60 yuan, but the economic chain hotel is relatively low, generally in 30-40 yuan. However, in each side OTA back to the present promotion, the return of the present part of the actual will be required by the hotel to bear, which led to Jinjiang Inn Hotel Limited (hereinafter referred to as "Jinjiang Star"), formally requested OTA to stop the hotel's booking return. It is reported that Jinjiang Star has asked the company's headquarters to sign more than 20 OTA channels, starting from July 1, 2012 to stop all the Jinjiang Inn on its website booking return, currently, not fully understood, including where to go, Ctrip, art and other platforms have indeed stopped to provide Jinjiang star rebate discount.

"If there are more suppliers such as Jinjiang Inn, Ctrip does not have the" price war "ammunition, ' price war ' will also be impossible to talk about. "Wang Kingston said that the behavior of Ctrip is not active, so the duration does not last long, it will not be possible to cause such as Jingdong Mall, Cat Mall, such as such a large scale of price concessions.