Ctrip merger and suppression where to force the line under the map Broken Bureau

July 31, Ctrip Q2 earnings, its accommodation reservations, traffic ticketing and other business growth significantly, the total revenue increase of 38%, but with the accompanying is the high cost of product development and marketing costs, making Ctrip's net profit fell 36% year-on-year.

Two noteworthy points, one is "Ctrip, including the Internet and wireless platform, the proportion of online transactions has accounted for 80% of the total transaction." , which means that the artificial customer service center also occupies 20% of the share, and the mobile end occupies how much share has not been announced.

Another point is that Ctrip's current cash and short-term investment balance of about 1.7 billion dollars, deep pockets, but also enough to carry on the acquisition of Ctrip.

Since April, Ctrip and where to set off the "climax" of online tourism integration, there would have been opportunities for the emergence of China's online tourism "Big Mac", but unfortunately, the two sides because of the issue of the dominant right finally did not talk about.

Since then, Ctrip to the passers-by, the same process of investment, mergers and acquisitions, trying to go to where the upstream hotel, tourism resources to carry out a sniper, and where to accelerate the layout line under the team trying to break the bureau.

I venture to predict where to go in the second quarter of the results will not be good-looking where to go, because according to preliminary estimates, where to go to the new destination division is also a "burning money overall situation." Each month technology research and development, staff salary input more than 30 million yuan.

Ctrip: Mergers and acquisitions under pressure

To repeat the history of Ctrip, so more can understand the pressure of Ctrip.

Ctrip was founded in 1999 only in 4 years on the Nasdaq listing, after many years, Ctrip has been sitting on the online travel "boss" of the top, enjoy "lying on the money" day.

Its gold start-up team financial freedom to invest in such as home, Han court, such as Fast hotel chain, and known as "genius" of the Ctrip CEO Liang Jianzhang far to the United States to study.

The first Ctrip did not feel the change of the domestic online tourism pattern. 2009, the online tourism website also began to encroach on ctrip tourism business. The same as OTA's way cattle nets, donkey mother, leisurely travel network in the tourism industry for vertical cultivation, after 2011, online ticket price platform to where to get Baidu 300 million U.S. dollars strategic investment.

In all "Up-and-comer", from the air ticket online parity platform to start where to the most threatening Ctrip. According to Cnit-reasearch last October on the domestic online tourism market end customer share survey shows, where to 38.86% ranked first, Ctrip to 27.75% ranked second. And where to go does not meet the air ticket price business, its speed in speeding up the core business of Ctrip "hotel reservations."

Soon after Liang Jianzhang became the CEO of Ctrip in 2013, he went on a trip to the NYSE listing. Liang Jianzhang to carry out a drastic reform of Ctrip, and speed up the layout of mobile end business, which in Ctrip's earnings can be seen in the second quarter, its research and development costs as much as 77 million dollars.

"Ctrip, which includes internet and wireless platforms, has accounted for 80% of the total trading volume," he said. , which means that the artificial service center still occupies 20% of the share, and the mobile end occupies how much share is not announced.

Accustomed to do the boss, have a large amount of cash reserves of Ctrip used by the counterattack strategy is, mergers and acquisitions, integration. So this April came out where and Ctrip to integrate the news. Industry insiders point out that if the two sides can really integrate, then China's online tourism market will be able to birth a "Big Mac" level of companies.

But sadly, the proud Liang Jianzhang and the equally unyielding where to go where CEO Zhungchengsu to dominate the new company, failed to reach a consensus, leading to the failure of integration.

Then Ctrip turned around and bought or invested in online travel companies, trying to intercept the upstream resources from hotels and tourism.

An interesting episode is, shortly before the listing of cattle in transit, Ctrip is also in the dissemination of the SEC documents online self-help travel data fraud, but soon came Ctrip to buy 15 million of dollars in the bull's Class A common stock, Liang Jianzhang to become the board members of the cattle.

After, Ctrip to more than 200 million dollars in cash strategy to invest in the same network, after the completion of the transaction Ctrip to become the second largest shareholder of the management team, accounting for about 30% of the shares. At the end of July, the industry also spread ctrip and the integration of Art Dragon message.

In fact, in addition to passers-by, Ctrip and the same journey, Art Dragon Hotel resources are highly coincident, the two sides should be 1 1 less than 2 of the results, that ctrip why to force the acquisition of these companies?

Because "a honey, b arsenic," for the company that does not mean a great deal, if and where to integrate, it will have multiplier effect. There are platforms, traffic, and resources, and these online travel companies are valuable resources.

Where to go: Open the new battlefield

In the second quarter of this year is where to go more tangled a quarter, on the one hand, the first quarter earnings loss of 170 million yuan, bear a certain amount of pressure, on the other hand, this year, Ctrip, art and other upstream OTA hotel resources will be from where to go off the line, where to roll up their sleeves

Before, where to go for upstream resources have been doing two hands preparation. This January, where to go to "dig the corner" of the United States, South West District manager Zhang Qiang as vice-president, set up a "destination" division, intends to push to get important and large number of hotel preferential cooperation resources.

In the second quarter of this year, to confirm with Ctrip integration is hopeless, to where to speed up the expansion of the destination division speed. So, where to go in addition to the Special hotel Business department, but also set up a ground team to collect more local hotel group purchase resources, as OTA offline after the supplement.

According to people familiar with the situation, where the hotel Business department is responsible for more than Samsung hotel, and the destination department will be responsible for all the tenants can stay, including roadside hostels and daily rental.

It is understood that as of this August, the destination division has set up more than 40 city stations, its staff has to close to 2000 people. And where to go. At present, the salary of front-line employees is the industry's high level, according to the calculation, where to where the artificial, technical background research and development investment should be in the 30 million magnitude.

After the start of the first line of the team, such as speeding up the machine, grass-roots staff at a monthly rate of more than 80 per month in the signing of local businesses. It's not crazy.

According to the introduction, the destination division's current task is "sweeping" the local hotel resources, after a few months, when the local hotel resources coverage to a certain extent, the next goal is the local tourist attractions resources, then may be involved in catering, leisure and other local businesses, of course, "destination" will be around the tourists to serve.

The result of the rapid progress of the destination team is that even the long distance command of Ctrip has also set up a local team, with where to rob Local hotel resources, of course, Ctrip is more under the line of "aggravating", rather than really want to do something online.

But where to go but really moved to the United States Regiment plate. The people who dug the American regiment, now come to rob the American regiment Merchant. If not the United States are busy guarding against the public comments and Baidu Glutinous rice, it is estimated that the United States will go to where to start earlier.

According to Iris data, hotel business is the highest proportion of O2O in local life services, up to 30%. At the same time, the hotel Industry online commission is also relatively high, in the Low commission of the group buying industry, the hotel can receive 15% of the proportion.

This "fat" although many people covet, but before the hierarchical, non-interference. Ctrip covers most of the business hotel needs, and the American Group Hotel's entry point is dedicated to civilian consumption of accommodation group purchase. Although there is a certain coincidence, but not yet to wipe the gun off the point.