Ctrip Challenger

A year ago, Ctrip's share price was NASDAQ:CTRP to $46.75 trillion, and now (for example, June 29), the figure is $16.76 trillion, down 30 dollars.

The company, which is worth about 2.4 billion dollars, is still the king of China's online travel market, but its cakes are being eroded by new challengers.

In the first quarter of this year, Ctrip achieved net revenue of 911 million yuan, an increase of 19% per cent. The absolute value is not low, but it is not as easy as it used to be 40% or 50%. As for net profit, Ctrip reported a negative growth, the first quarter of this year to achieve net profit of 169 million yuan, down 28% year-on-year.

Ctrip's competitors have both old rivals and new enemies. Art Dragon, Mango nets are carrying Chengtong era of competitors. Art Dragon in 2004 on the Nasdaq listing, but in the past Ctrip a single big market pattern, its long time did not get rid of the dilemma of loss. Art Dragon has to put down tourism, business management, such as not strong competitiveness, desalination ticket booking business, will focus on the hotel booking market.

May 2011, Tencent became the second largest shareholder of the Art Dragon. With nearly 700 million active users of the QQ platform, so that the outside world to the art dragon has more imagination space. Art Dragon's first quarter of this year's earnings showed that its net revenue of 153 million yuan, an increase of 23%, net profit of 11.9 million yuan, the year-on-year growth of 58.3%.

Mango network backed by traditional tour giants in Hong Kong, its overall competition with Ctrip although has not accounted for anything cheap, but the company's sub-brand-green mango, but in the Economic hotel reservation market bite a large piece of cake.

China has about 14,000 star hotels, this part of the market is Ctrip, art, such as the focus of competition, but the green Mango is aimed at a larger scale of economic hotels, including economic chain, inns, resorts and so on, the total amount of more than 280,000. The target customer base in the market is the growing number of backpackers and self-help groups in China.

Up to now, only 40 people team of green Mango, access to the number of hotels broke through 20,000, 2011 deal orders breakthrough 2 million, an increase of 130%.

In order to catch up, green Mango also in the business model of innovation. For example, take the whole e-business model. With the Industry Commission system, the use of platform service fee model, the proportion of service charges in accordance with hotel indicators and hotel consultation, below the industry average level. Change for many years the hotel costs front desk pay mode, replaced by prepaid and semi prepaid mode. Green Mango said that through these measures, the company's operating costs are about one-third of the traditional online travel site.

In addition, where to go to the diversion of Ctrip can not be underestimated. Ctrip and other online tourism companies are good at online sales, and where to go to the net is the search parity. Ctrip is the Commission model, where to go to the Web is the search engine business model, that is, precision Marketing, Pay-per-click. This gives a large number of small and medium-sized distributors to bring the opportunity to contend with Ctrip. And for consumers, they will find that Ctrip's offer has not been as good as before.

Ctrip's challenger also includes Beijing-east, Taobao and other products to kill the electric giants, with the advantages of users of the telecommunications operators, and gradually establish a proprietary online marketing channels of airlines, attractions, hotels, as well as buy, mobile internet and other emerging business models.

Under pressure, Ctrip in June uncharacteristically provoked a price war, such as the launch of "hotel group buy direct minus 10%" activities. Ctrip, one of the founders of Liang Jianzhang in an interview blunt, price flexibility and diversification will be ctrip future development of a general direction, and put forward to greatly improve the proportion of small profits and quick turnover products.

This may help to improve the pace of the decline in Ctrip, but the other question is: Ctrip profitability will show how the trend?