Ctrip Art Dragon Die Knock

Absrtact: Will carry Ctrip, Art Dragon, and other giants and many small and medium-sized online tourism business involved in the 5-month price war there is no sign of a ceasefire this year. Whether this year is a truce will depend on the circumstances of the opponents. Ctrip Vice President Mr. Yesterday in Beijing and Shanghai

The 5-month price war, which will carry Ctrip, art dragons, giants like Cheng, and many small and medium sized online travel businesses, has no sign of a cease-fire this year. Whether a truce this year will depend on the circumstances of the opponents. Ctrip Vice President Mr. Yesterday in the Beijing-Shanghai Ear of the three conference call to the South reporters revealed that the beginning of the war the company has made plans, this year's competition to fight the price of the degree of escalation or slowing, Ctrip will be synchronized follow-up.

"I personally expect the 2013 online business price war to continue." Mr. Said Ctrip would never lose as a competitor, "because that's our bottom line."

Ctrip Art Dragon Die Knock

Art Dragon CEO Cui last year has been trying to pass the price to go beyond the Ctrip hotel booking business. 2012 years ago, in the two quarter, saw the company's net profit decline continuously, while the rival art dragon from the hotel bookings of the total revenue growth of 47%, the share of expanding, Ctrip finally last July started a price war.

Reporter learned that ctrip to prepare for this 500 million yuan credit line, the company last year in the third quarter of 3.300 million yuan sales and marketing costs, close to Ctrip last year's marketing costs half. At the same time, Ctrip's third-quarter profit fell 40% of the price, while the Arts dragon for the first time in three years to taste quarterly losses, loss amount of 33.1 million yuan.

"This impact on the price war, we have expected." Mr. Revealed that, in addition to the only disadvantage, price war to carry Ctrip brought three major effects. First, the market share increased, the three-quarter hotel reservation volume growth rate increased to 40%. Secondly, influenced by the marginal effect, the advantages of Ctrip in products, services, technology and other factors began to appear. Relative to the site where the parity, cool news and other sites, Ctrip and its hotel price gap is basically between 10 yuan-20 yuan, O T a platform's competitiveness is strengthened. It is reported that Ctrip 2012 years after the price war, pure new users (the first use of Ctrip) than 2011 significantly increased.

Price war does not spread to air tickets

Online Enterprise price war "smoke Four" after, Ctrip, art Dragon market share expands, the third quarter of last year's online tourism market size data show that Ctrip market share of about 47%, Art dragon market share of about 8%, followed by the same process network. 2013, Ctrip's marketing strategy is simple. "Mr. revealed that if the art of slowly slow back, Ctrip will also slow down; if the art dragon increases price war strength, Ctrip will also strengthen," the growth trend will continue to remain. ”

The online business price war was mainly concentrated in the hotel business, but this year the art dragon may extend the scope of the price war to the air ticket field, Cui previously to the outside wind. New measures against the opponents, Mr. Said, the art of the current air tickets booking relative to Ctrip is still very small, only one-tenth; Ctrip will not follow the measures of the Return of Art Dragon, but will introduce some preferential policies to attract consumers. He thinks the airline ticket supplier is a lot more than the hotel supplier, whether the Civil Aviation Bureau allows the air ticket large-scale return is also a problem; even now there is no limit to the impact of Ctrip.