Ctrip Hotel reservation Business growth slowdown is facing severe challenges

Ctrip as China's online travel OTA leader, with its strong telephone customer service center and network sales model, a long time in hotels and air tickets online booking market ahead of peers in other manufacturers. In recent years, by the airline ticket direct impact, resulting in a decline in the Commission, air ticket business for Ctrip's income contribution is weakening year by year. And the most lucrative hotel booking business, is also facing severe challenges, by other OTA manufacturers and where to go, Taobao and other platforms squeeze, Ctrip hotel reservation business growth slowed, the hotel reservation market pattern is quietly changing. 2008-2012 Ctrip Q1 Quarterly hotel reservation business revenue Enfodesk The analysis of the hotel reservation market competition is increasingly fierce, the same industry enterprises to further carve up market share, Ctrip hotel business is facing severe challenges. First of all, from the recent years Ctrip 1 quarterly hotel reservation business changes in the situation can be seen from the 2010 Q1 quarter, Ctrip hotel bookings business revenue year-on-year growth continued to slow, to this year's 1 quarter revenue year-on-year increase of 18%. Ctrip Hotel booking business revenue growth slowed down the main reasons for the following three points: 1 Hotel Price advantage loss: From the upstream hotel purchase price, to Ctrip for the representative of OTA manufacturers have been very difficult to ensure that the hotel's lowest price. The hotel is trying to go where the net, Taobao tourism platform to bypass OTA channel, improve profit margins. Budget hotels are also developing their own membership system, reducing the reliance on OTA. In addition, more and more manufacturers to join the hotel booking market, Art Dragon in the opening of its hotel inventory to other manufacturers, the further diversion of Ctrip's customers. In the back-end marketing, hotel group purchase, coupons and other promotional methods such as the emergence of the traditional pricing model, for other than Ctrip, can use these methods to quickly obtain a large number of users to the platform, speed up the pace of catch-up Ctrip. And some of the hotel group buy products are the most high star hotels, directly to Ctrip's high-end user market poses a threat. Although Ctrip also carried out the hotel group buying and rebate business, but the move is more in the competitive pressure to give up some of the profit space, its rebate business process is too complex, a little less sincere. 2 The number of hotel coverage is insufficient: Because the original main orders Ctrip from telephone customer service, so in order to ensure that the order more concentrated, Ctrip at first did not exert force to expand the number of cooperation hotels. But with the rapid increase in the proportion of online bookings, consumers want to get more hotel options through the site, they exposed the number of Ctrip in the hotel's short board. When Ctrip began to catch up with other vendors, the number of hotels in the coverage has lagged behind to where the network and art Dragon two competitors. 3 Call center cost pressure: Online hotel booking has become a trend, more and more consumers choose to book hotels through the Internet or mobile applications, Ctrip's main competitor Art dragon through online booking ratio has nearly 70%. The main order of Ctrip is still from the call center, its online booking thanFor example, there is no more than 50%, the huge call center for Ctrip caused a huge cost pressure, with the continuous increase in labor costs, the future will further compress Ctrip profit space. To sum up, in the airline ticket booking business tightening background, Ctrip's hotel business is facing severe challenges. Strong brand influence, high-quality high-end user groups and call Center good service system is still the advantage of Ctrip, but if you want to continue to consolidate its leading position, we need to pay attention to online business development, accelerate offline resources to the pace of transfer.