Ctrip: to the networked renaming

Time: November 2002

Background: Ctrip's name is called "Ctrip Travel Service Company"

Speech man: Founder Liang Jianzhang

Occasion: Interview with China Economic Times

Words: The company does not need a particularly large network, a guest phone came over. Marketing is actually a virtual brand, the key is to customer service good

Follow-up: Ctrip Restart the Internet elements, reaffirm the importance of Ctrip travel network, and start mobile internet strategy

Ctrip's renaming was a big event in the last dotcom bust. The Nasdaq index, which hit a record high of 5048.62 in March 2000, began to go all the way down to the end of August 02, down more than 70% per cent. In a bubble burst, a large number of internet companies disappeared, survivors struggled to survive. And many of China's internet companies, which target Nasdaq listings, have also been in pain. Sina NetEase Sohu, there are very low prices, NetEase fell to 1 yuan below the worry of the city, Sohu total market capitalisation is less than its cash holdings. In that era, the portal was the main model, even so, not to mention such as Ctrip, such as market segments of the "network company."

Ctrip this company actually at first really just put on the skin of an internet, do not wear this piece of skin, it is difficult to melt to the massive capital--before the Nasdaq bubble burst, a paper business plan can melt to the fact that the capital is objective, that era is so crazy, It's amazing: you just have to say that I have something to do with the Internet. But if it has nothing to do with the Internet, there is little venture capital that will favor you.

Ctrip relies on the skin, gets the financing, and starts doing business. If the people who have flown in that era, will be everywhere on the airport to distribute Ctrip promotional materials and the person who made the impression: a Ctrip staff gave you a card, and claimed that you are Ctrip's membership. There is a big phone number on the card, you can make a reservation by dialing this phone, and enjoy a certain discount-in such a process, the user is in fact no need to have any relationship with the Internet.

Ctrip this piece of land pushes troops, quite huge, not only the first-tier cities have, two or three line city can also see their figure. Relying on this primitive but indeed effective way, the rapid accumulation of a large number of users. 10 years ago, the popularity of aircraft travel was far less than it is today--as for some groups to use the so-called "double fly" as a selling point to attract consumers. The general meaning of the flight are business traveller users, there is a public reimbursement but also can get Ctrip points to exchange some in-kind gifts, why not.

It is no wonder that ctrip with a huge push force and the same huge telephone call center to start business, in 2002, China's Internet population only a few 60 million, to rely on this population, completely rely on the Internet to start business, almost impracticable. Liang Jianzhang so-called "not too big net" and this basic match. People do not haunt the Internet, what to do? With Cheng Yili advocated "mouse and cement" mode, in fact, is: card-issuing call center mode, indeed and the internet is not too close relationship.

But the problem is that Ctrip seems to think that this model can go on and on: expand with labor-intensive jobs. Ctrip's personnel and venue rental cost burden is more and more heavy, but the Chinese network population increased rapidly, temporarily concealed some problems. When the demographic dividend was over, Ctrip's problems showed up: its growth slowed, costs were high, and rivals soared, eventually leading to a sell-off in the capital markets, which fell 40% per cent in 2011. In 2012, net profit plunged by 34%.

At the beginning of 2013, Ctrip began to prepare Zhangbao: the abolition of the ground extension, which confirms that the abolition reached 500 people, is a matter of controversy because the push force is a grease unit, taking into account the cost of manpower and the rental costs of the transport hubs at the airport railway station, Ctrip must reluctantly start. Ctrip itself admits that "with the marketing tools from the line to the online transfer of the need, the current on-line access to customers become mainstream and trends, the future company will be more resources allocated in the online channel." ”

Almost at the same time, 07 years of running to the United States to read the doctor's Liang Jianzhang in this when the mouth announced the return. Although the abolition of personnel occurred before the return of the beam, but the time is so short, there is reason to believe that this is Leung-led results. Liang Jianzhang A new CEO in February and attaches great importance to the mobile Internet and layout.

After the return of Liang Jianzhang, Ctrip's performance is quite remarkable, the two quarterly profit growth of 41%, from hotels, air tickets, travel resorts, business management of the four major revenue has two-digit growth, which in the outside world is widely regarded as the result of mobile app. Liang Jianzhang does make great strides in reforming the Ctrip technology team, and its app user experience is doing very well. However, it must also be seen that Liang's luck is good, the 2013 tourism market is quite hot, its strong opponents to where also has 5 times times growth.

This is a development track of Ctrip, from the early batch of Internet Call center of the real, to today's return to mobile Internet, Ctrip, and finally do it back to its "network company."

This article is composed by the main Wei of the ittalks, and welcome to the micro-letter search to subscribe to the public account, or the Sohu News client technology channel subscription "Wei Wave"