Ctrip is likely to disclose the strategic layout of the high-end tourism market

Absrtact: United States time May 16 night, Ctrip will disclose the first quarter of 2012 earnings. Ctrip insiders revealed that Ctrip is likely to disclose the strategic layout of the high-end tourism market, which will become the future Ctrip's biggest source of profit growth. April 28, Ctrip announced

United States time May 16 night, Ctrip will disclose the first quarter of 2012 earnings. Ctrip insiders revealed that Ctrip is likely to disclose the strategic layout of the high-end tourism market, which will become the future Ctrip's biggest source of profit growth.

April 28, Ctrip announced the strategic cooperation with Tai Mei group to enter the high-end tourism market. Former Tai Mei Travel president and CEO Ming revealed that Ctrip will be resources and cash in the way of holding too beautiful tourism.

At the same time, in order to layout high-end market, Ctrip recently set up a specialized operating company Honghu Yi Tour, the company's CEO Rangkinzhang to reporters that fan requirements in five years, the domestic high-end tourism market, the company now estimates that the domestic high-end tourism market value of about tens of billions of yuan per year, Then this business will bring the tens of millions of operating income for Ctrip. But to enter the high-end market, is the new point of Ctrip or is it just a gimmick?

Aim for high-end tourism

What is high-end tourism? In Europe, a single consumption of more than 5000 euro for high-end tourism, Japan is considered to be 1 million yen per trip is high-end tourism. As for China, Ctrip CEO fan that a single consumption of more than 50,000 yuan. This is obviously not a mass market.

Fan that the high-end tourism services market potential is very large, the reason is that China's personal assets in 6 million yuan above the high net worth crowd of 2.7 million people, of whom 60% said they would choose high-end tourism services. A report released by China Merchants Bank and Bain revealed that the number of high net worth people with investment assets above 10 million yuan in 2011 reached 590,000. The Hurun list is more than 960,000 people with mainland assets of more than 10 million yuan.

At the end of last year, Ctrip United Hong Kong travel agency Brand Yong ' an travel, Taiwan's largest online travel agency to set up Honghu Yi Tour, and the strategic investment in April this year too the United States Group's too beautiful travel, the joint Operation Honghu Yi Tour, to create China's largest high-end tourism platform.

Tai-Mei Tourism is the group's company, Tai Mei Group by Ma Yun (micro-bo), Shi Yuzhu (micro-bo), Guo, Shen, Feng, Shen and other 19 well-known entrepreneurs to create a common investment, the business covers travel, media, health and so on. This and ctrip cooperation of the plate, just its tourism sector.

Before cooperating with Ctrip, Tai Mei Tourism has been operating for four years, providing global theme travel, private travel customization and business travel services to more than 20,000 people in China.

Guo said, too beautiful tourism channels Limited, so far only more than 2000 members, and Ctrip tens of millions of members, through the database analysis, repeatedly booked high-end accommodation, hotels and tourism services have nearly 30,000 people. This part of the customer resources is the high-end tourism hope to develop the target customer base. In view of this, Tai Mei Group CEO Hu Shihui to the co-development of high-end tourism market.

The growth of the main industry is weak

"The two-year debate on the growth of Ctrip has been constantly, and Ctrip needs to show the capital market a strong contribution to the new business." "An industry personage who declined to be named said that Ctrip had entered the high-end market because, despite the overall performance of Ctrip, its pillar business was facing increasing challenges."

Ctrip's two major business ticket bookings and hotel bookings have faced severe challenges in the development of these years. Not only the increasing proportion of the direct sales of airlines, Taobao, where, China Telecom (micro-BO), such as the emergence of electric business platform, challenge Ctrip's supremacy. Hotel reservations, Ctrip's distribution platform for the hotel's influence is also weakening.

Reporter according to carry Cheng newspaper in the past years of data collation found that in 2006-2009, Ctrip's hotel signing growth rate has been a micro-decline, 2006 contracted volume growth of 34%, followed by two years only 28% and 27%. 2010, Ctrip Hotel signed a sudden force, add nearly 8,000 hotels, the increase of up to 73%, but this high growth and failed to maintain, the subsequent 2011-year growth immediately fell to 43%. For hotels, Ctrip is also the role of the platform in the reduction of its single shop overnight sales in the annual decline, the 2006 single shop overnight sales have 5.07, 2011 fell to 3.21, the growth rate of only 20%.

To expand the holiday tourism market is one of Ctrip's choices. 2011 Annual Ctrip Tourism Business income of 535 million yuan (85 million U.S. dollars), compared to 2010 growth of 41%. Tourism business income accounted for 2011 years Total operating income 14%, 2010 is 12%.

There is only one holiday travel business, Ctrip's performance growth is not enough to rescue. Fan aimed at high-end tourism. Ctrip insiders revealed that high-end tourism has become a clear Ctrip is the fourth pillar industry.

Just a stunt?

And the original holiday tourism products are different, Ctrip in the high-end tourism market, high profile and self-confidence. Hu Shihui even say that there is no competitor in the country.

Ctrip's expectations of the high-end market seem overly optimistic. 2011, Ctrip Net operating income is only 3.5 billion yuan, net profit also only 1.1 billion yuan. If Ctrip to seize the high-end tourism market half of the business, it means that now Ctrip's income will be more than three times.

Guo said that Ctrip has more than 30,000 high-end tourism members, even if each person consumes a high-end tourism project every year, can bring at least 1.5 billion of the income. Plus Ctrip has 50 million members, these young consumer groups have a considerable part of the intention to do high-end tourism consumption. There is a large number of large-scale to do the basis, Ctrip's high-end tourism will be able to reduce costs, and in Ctrip on the online platform to become replicable products to promote.

Other peers don't think so. "High-end tourism is a small, fixed format." The company in which it operates should also be a professional company and will never be factory-style. "China's largest travel agency, head of the national travel head of the head of the head of Dong Wei, the domestic current high-end tourism market is only in the initial stage, to do this market is very few companies, and only in individual subdivision areas." If the national travel head of the cruise products will only sell 50-70 people a year, most of the passengers just buy ordinary cruise products.

Dong Wei said that in order to open up high-end market, need to enter private banks, private clubs to do one-to-one docking. "The channel is not equal, will limit the development of high-end tourism." ”

"We are not worried about competitors, the system of state-owned enterprises is difficult to become our opponents." "Guo that once Ctrip formed a business advantage, it would be difficult for domestic travel agencies to catch up." Dong Wei to this noncommittal, said that although the state-owned enterprises have system and incentive mechanism restrictions, but there are brands, network channels and the advantages of cognitive. The company will consider splitting out specialized companies to do high-end tourism operations.