Ctrip to take consolidation status Ctrip "where" is still a problem

Absrtact: April 28 Night, the online tourism industry pattern changed dramatically. Overnight, Ctrip and the same way nets and cattle nets to the enemy as friends, to reach strategic cooperation. The acquisition is taking place amid rumours that Ctrip was being merged, after comments that Ctrip was

April 28 Night, the online tourism industry pattern changed dramatically. Overnight, Ctrip and the same way network and the cattle network "turn the enemy to friends", to reach strategic cooperation. The acquisition is taking place in the Ctrip was a merger of rumors during the previous comments that once Ctrip is one of the giants of mergers and acquisitions, will mark the online tourism industry into the bat (Baidu, Ali, Tencent) under the Division of the Duopoly competition era.

At present, insiders pointed out that the horizontal purchase of Ctrip can ease the development of pressure, but can not fundamentally change the plight of its face.

Ctrip wants to consolidate status through mergers and acquisitions

On the evening of April 28, Ctrip officially issued a public announcement that more than 200 million dollars in cash strategy to invest in the same network, after the completion of the transaction Ctrip will become the second largest shareholder in the management team, accounting for about 30% of the shares.

The following day (April 29) morning, the f1-a to the United States Securities and Exchange Commission submitted a public release of the supplementary documents. The paper disclosed that, on April 27, 2014, passers-cattle travel network agreed to purchase 15 million-dollar class A common stock by Ctrip, and has granted Ctrip the right to appoint a person to join the board as a new director immediately after the release.

Ctrip's successive acquisitions have surprised the industry, which has been fiercely competitive in the ticket business. In the current online tourism industry, Ctrip presents and bat "singles alone" competition pattern, obviously, Ctrip horizontal acquisition behind, is not want online tourism into the era of oligarch competition, but hope to continue to maintain their ecological circle, to consolidate the "X" outside of the situation.

Ctrip's investment in the same process is taking place in its and go to where the network merger rumors, and at this time, Ctrip is a surprise stake in the same process and passers-by cattle. In the shares of the two companies, Ctrip did not deny it and where to go to the merger rumors, just say "we do not comment on market rumors."

Internet commentators believe the sea light, "where the network is not in the absence of OTA (online tourism) mergers and acquisitions, it is difficult to solve the fundamental problems of Ctrip." "In the past years, Ctrip has been China's largest OTA market site, but in recent years, due to the formation of bat monopoly, coupled with the advent of the mobile internet era, especially in the mobile end to where the network to take the top priority, Ctrip's business was greatly impacted."

Under pressure, investment has become the main means of consolidating the market position, Ctrip has acquired or invested in a number of small online travel companies, such as passers-by, passers-by, travel, Cicada travels.

Letter Hai Guang believes that investment and acquisition can to some extent alleviate the market anxiety of Ctrip, but if the hope is to invest and buy, so as to be able to contend with bat online travel overlord, now look unrealistic. Ctrip itself is also facing some big problems, that is, the media called Three mountains: Ctrip is becoming a heavy asset company, online and offline at the same time fighting, the profits are diluted; response is not sensitive to the tourism market and the changes in the Internet technology trends not enough attention The new online tourism business model eats into the core business of Ctrip and squeezes the profit.

Ctrip's "Where to go" question

In an interview with the Daily Economic news reporter, Wang Liyang, an Internet analyst, said that the whole industry now faces a series of problems, such as high cost, low gross profit margin and lower level of upstream supplier information. If these sites can catch bat's boat, they will enjoy the resources and capital advantages provided by the latter, that is to say, the future of online tourism competition depends on deep integration. One of the greatest values of bat is its commitment to the import role, itself has a huge amount of traffic and huge user resources, which is the biggest temptation Ota.

Obviously, Ctrip's a series of actions to explain that it did not give up the "x plan" that is the "X" after the bat, but the reality as the industry analysts said, not optimistic. In addition, there are insiders pointed out that Ctrip to the bat in order to gain a firm foothold in the end, or to face the problem of where the network.

Wang Liyang that, "the most obvious example is where the Baidu acquisition, Ctrip, Art Dragon from Baidu to obtain a significant reduction in traffic." ”

Currently on the mobile end, where the net has surpassed Ctrip. On the PC side, where to go to the vertical search +tts (Online trading system) mode is also the impact of the market share of Ctrip, especially the original to search for parity, to earn advertising fees to where the network has now begun to direct online hotel, to OTA change.

It is noteworthy that where to go the network in recent years, the growth rate is far higher than Ctrip, to where the network is the flow of resources-oriented web site, where the flow direction, where will be changed. Where to go. The existence of OTA such as Ctrip will produce squeeze, but for small and unique OTA and direct tourism providers have a great boost.

Therefore, Ctrip by the current acquisition of its business may be a threat to the new Web site, and can not fundamentally solve its future plight, after all, Ctrip's acquisition of capital is always limited, Ctrip's X dream is also facing a lot of tests.