Ctrip breaks the mouse + cement fence in a smarter way

Absrtact: With the recent Hainan Airlines travel release for mobile internet easy travel products, this is undoubtedly in the already unusually hot online tourism market and put a heavy message. One is the online travel market Big Brother, now considering how to integrate the industry

With the recent Hainan Airlines travel release for mobile internet-oriented easy to travel products, this is undoubtedly in the already unusually hot online tourism market and put a blockbuster news.

One is the online travel market Big Brother, is currently considering how to integrate the industry, in a more intelligent way to break the mouse + cement barriers; One is the traditional tourism giant, with 5 times times the equivalent of Ctrip annual revenue scale, but in the mobile internet industry is only a child.

Both are not short of money, Ctrip has a powerful call center to deal with a large number of orders; HNA tourism is ready to reshape the leisure industry chain, the face of online tourism, the trillion-scale market, the direction of the two different, the following from the capital and industry, models and products to specific look at their layout

Industry & Capital Level: Platform Acquisition vs Vertical subdivision

Online travel is certainly one of the hottest industries of the year, especially at the capital level, during this period, there were mainly three things--1 the main leisure travel cattle network to the United States to submit an IPO application; 2 The second echelon of the Art dragon and the same marriage; 3 the most eye-catching, industry leader Ctrip and industry where the merger scandal- Both are listed in the United States, if the successful integration of market capitalisation will reach tens of billions of dollars, into bat after becoming China's fourth-largest internet company.

Once the industry completes the merger, it will be the biggest event in China's OTA market so far, unlike the online video industry that smashed money to promote copyright (last year's industry's first Youku and second potatoes), and the online travel market does not rely on money to solve the problem. No matter where to go or art dragon with the process, in fact, have been Baidu and Tencent control, the early days of the industry's independent mountain era end.

What are the driving forces of mergers and acquisitions? Although Ctrip is the industry's first, but its business model, still rely on their own call (customer service) Center load, do is to collect the traditional ticket hotel commission trading, where is the use of search technology and large data to obtain users and advertising costs, the two, a mature model, a leading data, just complementary, once merged, Almost a direct monopoly of the market can be two models.

Obviously, Ctrip ready to go a high encyclopedia of the road, this is the OTA development to a certain stage of the way, and then to see another latitude of hna tourism.

HNA Travel Group is one of the five industries of HNA Group, which covers all tourism industries such as aviation, hotel, tourism, finance, it and cruise, such as travel card, online payment license, national personal foreign currency exchange qualification, 2013 revenue exceeding 20 billion, Although the scale has been several times with Ctrip last year 5.4 billion annual revenue, but HNA tourism still positioning itself as an entrepreneur identity.

The entrepreneur, walk certainly cannot be the platform road, on the one hand they lack the experience in the Ota field, the second is nobody wants to come up and the giant head-on. As a result, HNA tourism to the first target in the mobile app, the choice of direction is the surrounding leisure tour.

From the formal perspective, leisure tourism can be divided into groups and self-help tours, by the traditional travel agencies to provide a long-term occupation of tour services dominated, in recent years self-help tour is rising and catching up with the group tour market; from the product, it is mainly divided into outbound travel, peripheral travel, domestic travel, ticket booking and Cruise and other subdivision areas; The report data shows that Online leisure travel still accounts for only 7.7% of China's overall leisure tourism market, which is expected to reach 13.2% in 2016, while another recently released report shows that the total turnover of China travel agencies in 2013 is about 317.43 billion yuan, of which online transactions accounted for only 9.2% per cent.

Believe that anyone who sees the data can easily draw two conclusions: 1 Leisure travel accounted for a very low, rising space is very large; 2 The internet is very weak online, mobile app opportunities are many. This also explains why the HNA tour starts from here.

In view of this, HNA tourism proposed a "clover" business model model--from the direction of capital finance, subdivided platform, flow and product three pieces of foliage, in the platform/channel foliage, HNA Tourism launched a professional field of official website, in mobile applications, recently launched the main peripheral leisure Travel market "easy to travel" , and even planned to invest 5亿来 to create leisure tourism industry chain; In the flow level, HNA tourism will use offline resources and Web site resources of mutual diversion, unified for new product services, the resources level, it is the most advantage of HNA tourism, through the HNA Group's subdivision of the matching industry, hoping to complete an open line and offline, All over the business landscape of leisure travel and pan-tourism industry.

This shows that the industry and capital level, the layout of HNA tourism to avoid weaknesses, the advantages of their own resources into the market quasi outbreak point, then in specific products and business model, HNA tourism is how to structure it?

Mode & Product Level: Selling tickets vs. selling scenic spots

In fact, some people describe the Chinese OTA market has been relatively "bizarre"-First rob the online, and then Rob Hotels Rob Tickets, and now Rob Mobile app, unlike many industries that is the boss can always be the eldest, why?

In this respect, professional tourism industry research institutions consulting that such a chaotic situation, because the industry is relatively low market level (mainly a variety of tourism resources), the overall concept of relatively backward (mainly a variety of tourism resources side), leading to various types of survival in the gap between the service providers need to constantly rob all kinds of Still need market and the gradual maturity of the visitor. And the future of China's tourism services market, market concentration will be more and more high, the market share will increasingly focus on large enterprises.

In the tourism industry chain, from beginning to end can be divided into such a few stages, respectively, is 1 tourism decision-making, 2 tickets purchase, 3 scenic navigation, 4 scenic spots play, 5 travel notes, the last travels also largely determines the first travel decision. In the face of this situation, Ctrip in business travel, outbound travel, domestic long-term travel, around the overall layout, but the essence, can be summed up to a simple two words-selling tickets. and Hna travel easy to travel around the key in the surrounding vertical layout, do is the whole process, compared with Ctrip, closer to the user.

In all fairness, at this stage Ota has to buy tickets and travel records to make a certain threshold, but in the most impact on the user experience of the "scenic" stage, is still very inadequate.

Why do you say that? For two simple examples, holiday driving to play, navigation can tell you which road recently, which road is not blocked, but found in the vicinity of the scenic spot, in order to find a free parking space you still have to delay a lot of time (also not necessarily find); After entering the scenic spot, you pee to find the toilet, Still have to look for signs or hope that the ticket is marked with detailed location, miserable ... Believe that many people have this experience?

In fact, these are the tourism after several years of development to now the most need to solve the pain point, hna travel easy travel, focus on the above mentioned industrial chain "scenic play" this piece. It's no exaggeration to say that this point is the most dirty and tiring job in the whole chain. It is not an engineer to write code or throw money to do the promotion can see the effect, need is a scenic spot, a scenic area to talk about the information and data of each scenic spot, this even with the migrant workers no difference, Then it is reasonable to push the most valuable information to each user's phone in the most appropriate route, thus forming a set of standardized attractions to play the process.

This is also known as "selling scenic spots", beyond the imagination of the offline work, OTA giants are unwilling to exert force, common start-up companies are difficult to reach the place, but once the establishment of its perfect large data, will be the entire tourism industry user experience to bring the quality of ascension.

In the specific products, in addition to looking for a parking space to find toilets, as well as the scenic area of the guide, voice interpretation and other practical functions, the current easy to travel has completed a number of key scenic spots of the standardization process work, including the famous water village Zhouzhuang, 51 period of travel plan friends can try.

In the scenic area of large data work at the same time, HNA travel seems to be planning more play--the most daring is to cooperate with the scenic area to avoid ticket income, which is based on tickets accounted for only 30% of the income, 70% from the consumption of the current situation, said this, this model is not very much like --The game itself free, to attract more users to enter, get more game props income and advertising display.

At present the Internet channel value is bigger than the product supplier value, offline traditional enterprises to accelerate the backlash, internet companies and traditional tourism enterprises in the era of intensified competition, Ctrip and HNA Travel took a very different road, which is the development of their own direct decision, whether platform integration or vertical layout, is also worth looking forward to.