Ctrip or save "buy low and sell high" phenomenon

Source: Internet
Author: User
Keywords Refund fee Ctrip fare sales sales rebate buy low and sell high
Tags air china air tickets airline booking business buy low and sell high ctrip ctrip travel

Weekend, media reports said that in the Ctrip to withdraw full price "travel package" tickets, to pay up to 40% of the refund fee, far higher than the airline's unsubscribe rates. In addition, Ctrip is also suspected of "buy low and sell high" and other illegal sales. Ctrip yesterday responded that "travel package" is a discount package, unlike the ordinary separate purchase of air ticket products, packages within the ticket deductible travel expenses, so refund sign fee is higher, there is no sales increase problem.

Beijing Times reporter Ping also where

□ exposure

The refund fee is four times that of the airline

According to media reports, the reporter purchased a full-fare ticket of Air China Travel Package from Beijing to Qingdao with a total fare of 1,057 yuan (including the ticket price of 947 yuan, airport construction and fuel costs of 110 yuan) at Ctrip's mobile client site. Through Ctrip's refund formalities, the last of this ticket charge refund fee of 473 yuan, accounting for 40% of the total fare.

According to airline regulations, Air China refund fees charged before the flight take 5% off after take 10%.

Citing China Consumer Association lawyers head Qiu Baochang said: "Set a high threshold to charge 30% to 40% service charge, such a refund is unfair."

Or save "buy low and sell high" phenomenon

In addition, the media survey found that Ctrip's travel package products do not provide itinerary, there is a "buy low and sell high" phenomenon.

Air China staff pointed out that this ticket price of 947 yuan ticket, the actual ticket price of 860 yuan.

The media worked out an account, such as ticket sales in the airline, with 970 yuan ticket purchase (including 860 yuan face value, 110 yuan machine building fuel costs), 10% refund fee loss of 86 yuan. The purchase of Ctrip travel package, the total fare of 1057 yuan (947 yuan face value, plus 110 yuan built fuel costs), in accordance with the total fare 40% of the fare, a total loss of 473 yuan.

□ Response

There is no fare increase in the package

In response to the above question, Ctrip last night responded that the "travel packages" products are the combination of air tickets and other Ctrip travel products, the current main is the "ticket + unlimited value 100000 points travel coupons" and "air tickets + aviation accidental injury Insurance, travel coupons, gift cards, one of the optional "travel packages.

Ctrip said yesterday that the "travel package" a lot of operation and booking rules, are in line with the current industry practice, and guests booking the package product, the booking interface has a very detailed product description.

Ctrip for travel planning, travel fixed leisure travelers recommend the choice of cheaper prices of 'travel packages' products.While those who require the service such as the retreat sign higher business guests, you can choose our 'Business Excellence' And other non-package conventional air tickets. "Ctrip said," due to the combination of packages within the ticket deductible travel expenses, there is no increase sale issues.Ctrip will also provide travel packages for customers to provide full reimbursement certificate "

□ Analysis

High refund fee is unreasonable but legal

Tickets through the online travel site booking, refund policy has been widely questioned. Industry practice is that a great discount on the ticket can not be refunded sign, the full price tickets can be. The specific costs, in general online travel sites more stringent than airlines.

"Such a high refund may be unreasonable for consumers, but it is legal." Wei Changren, chief consulting officer of Ctrip.com, said: "At present, the ticket reissue market is in turmoil, and airlines will divert ticket trading rights To the ticket agent, refund policy signed by the agent himself set.

From the current online travel business in the ticket business profit model point of view, in addition to the airline agency commission paid and sales rebate, refund sign, insurance premiums and airline ticket spread has become its main source of profit. In the aforementioned media reports, Ctrip customer service said the high refund fee collected by Ctrip, will be fully paid to the ticket booth or airline. However, Wei Changren said: "Ctrip still points to retreat change sign fee.The reason why such a high fee charged to sign back, but also out of corporate earnings considerations."

"The fare refund is to make up for the operating costs." The business model for online travel companies under the era of big data is to benefit from a contractual pass after purchase, to buy cheaper tickets, to breach of contract and to pay high default fees. "China Travel Yang Yanfeng, an associate researcher at the institute, said: "However, the refund fee should not include the airport construction fee and fuel fee. The 40% refund fee after packaging should be improved."

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