Where does Ctrip's giant ship in the online travel industry sail?

Absrtact: Liang Jianzhang Comeback, Ctrip This online travel industry's giant ship will drive to where? February 21, Ctrip appointed company chairman Liang Jianzhang concurrently CEO, appointed former CEO fan as vice chairman and President of the Board of Directors. Fan will also be chairman of Ctrip Tourism Holdings Ltd.

Liang Jianzhang Comeback, Ctrip, the online tourism industry, where will the giant ship?

February 21, Ctrip appointed company chairman Liang Jianzhang concurrently CEO, appointed former CEO fan as vice chairman and President of the Board of Directors. Fan will also be chairman of Ctrip Tourism Holdings Limited.

Ctrip Tourism Holding Co., Ltd. for Ctrip is responsible for tourism-related business of the holding and investment company. Days Hao Capital Chief analyst Hou Xiaotian that after the adjustment fan is responsible for the business is Ctrip's non-mainstream business, the role of fan less than before.

And Ctrip said "believe fan will continue to create outstanding performance in the new position, help Ctrip seize new opportunities." ”

Hou Xiaotian that the biggest reason for Liang Jianzhang to be CEO is "know it better than fan": Fan is a traditional hotel business, technology is not his forte, online travel orders are fast to the Internet, mobile internet migration, need more technical background.

In the May 1999, Liang Jianzhang and Hanting, who were technically born, created the Ctrip network with the fan of the Shen and travel agencies of the investment bank. Four people according to their expertise division of labor: Hanting President, Liang Jianzhang chief Executive officer, Shen Chief financial officer, fan as executive vice president, said "Ctrip four gentleman", this team was called "the first team", this combination was considered as a model of entrepreneurial success.

Since then, Hanting and Shen away, Ctrip has maintained a long period of rapid growth, and laid the dominant position of China's online tourism market. However, the recent online tourism market changes, but also began to let the investors can not restrain, Ctrip's internal personnel began to change.

Ctrip Sinks

Profit declines, industry monopoly status no longer, this is Hou Xiaotian as fan "step aside" two main reasons.

February 1, Ctrip released 2012 annual earnings: Operating income of 4.2 billion yuan, 19% growth compared with 2011; Net profit is 714 million yuan, which is 34% lower than 2011.

During the year of 2012, although Ctrip's income rose year-on-year, net profit fell sharply year-on-year. Earnings rose 23.08% in the 2012 quarter, profits fell 25.17, revenue rose 18.33% in the second quarter, profits fell 55.83%, third-quarter earnings rose 21.81%, profits fell 39.53%, and in the newly released four-quarter report, revenue rose 18% and profits fell 24%.

Ctrip's sinking does not begin in the season. Ctrip in the fourth quarter of 2011 and the full year earnings show that the quarter of the year's operating profit of 231 million yuan (37 million U.S. dollars), a year-on-year decline of 21%. Ctrip's net profit for the quarter was 253 million yuan (USD 40 million), down 16% per cent year-on-year.

Ctrip still keeps a leading position in the air ticket reservation. But because the airlines themselves to do direct sales, Ctrip received in the Ticket booking commission is falling, can only be maintained in 4% to 5%, the profit space is compressed.

Marketing costs are climbing behind the market share slide. Cheng reported that 2012 sales and marketing costs for the year 984 million, compared with 2011 growth of 58%. This also led to a decline in Ctrip's net profit.

Ctrip is sinking, but external rivals are rising. According to the key network published in December 2012, the main online travel website Hotel Reservation Business user coverage monitoring, November 2012, online travel website Hotel Reservation Business user coverage of the top 5: Where to go, Ctrip, cool News travel network, art Dragon Travel Network and Mango net. Where to go net ranking has surpassed the long-term ranks first Ctrip, leaped to the top.

Hou Xiaotian said, has been in the online tourism industry absolute monopoly status of Ctrip, whether investors, or the board, are unable to tolerate Ctrip constantly sinking, CEO fan was pinned to prevent the heavy burden of Ctrip.

Fan offers two reasons for the decline in profits: First, a large number of new product development, 2012 years on a large number of new products, in 2012 only the fourth quarter of the cost of product development is 264 million yuan, the annual product development costs is up to 912 million yuan; the other is the hotel business price war, a large amount of cash return, also affected the Ctrip profit.

The investment is so huge, the output is not high, ctrip a professional to accept this newspaper reporter interview said "this very test shareholders ' patience."

Fan three strokes to save Ctrip

Before this, fan has repeatedly made "save" Ctrip's efforts, generally speaking, "paradigm of redemption" is divided into three strokes.

The first is the price war, last July, Ctrip announced 500 million U.S. dollars for the hotel business price war, a large amount of cash return; this February 20, Ctrip announced the booking of air tickets return activities, consumers online booking in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, six of the originating from more than 3,000 flights, Can receive a maximum of 715 yuan in cash return, the same budget amount of 500 million U.S. dollars.

The second recruit is a wide net, 2012 Ctrip New development costs of 912 million yuan, "new product" intensive Advent, reviews the return function, "Hundred Outbound travel", car rental platform and based on Android system hotel booking applications. In addition, with the Czech airlines, the capital of aviation cooperation, customers can directly in the Cheng Ping on the table to book the ticket, and buy air tickets, such as the capital.

In the mobile Internet, Ctrip introduces the wireless application group including Ctrip Wireless, Ctrip Special Hotel, Ctrip tourism, donkey rating NET, Tieyu, etc. Ctrip also acquired and invested in a large number of companies, including ordering small secretary, Pine cone nets, flying often quasi, Yongan travel and too beautiful travel.

Fan previously said that last year, the largest U.S. OTA company Expedia acquisition of search Engine company Trivago, Ctrip will also acquire search engine companies to help Ctrip to provide better services.

The third step is layoffs, January 22 this year, in addition to retaining Beijing, Shanghai, Guangzhou, Shenzhen, the four major cities of the seven airport channels, the other two or three-line city airport, high-speed rail, railway stations, bus stations and other ground sales staff will be abolished, is expected to lay off at least 500 people. Fan said "Layoffs are normal sales business adjustments". At the same time, Ctrip has formed two new companies: first, investment companies, industrial chain business investment or mergers and acquisitions, the second is the tourism destination marketing company, to create tourism vacation products, with the existing OTA business to form a "troika."

Fan said Ctrip is seeking to upgrade from OTA (online travel agency) to OTP (one-stop travel service platform).

Fan's salvation is not seen by the outside world. Hou Xiaotian that fan take the above measures "very passive", such as price war, Art Dragon 2009 launched a price war, Ctrip 2012 follow-up, such as search parity, Ctrip has no action so far, such as mobile Internet, Ctrip as a leader, did not play a leading role in promoting industry innovation.

Hou Xiaotian that "management mentality out of the question, that the new company will not be the impact of Ctrip, but did not foresee the industry is undergoing revolutionary changes."

Hou Xiaotian for fan investment and acquisition is also not optimistic: everywhere, doing everything, and online tourism-related models, Ctrip has invested or acquired. Hou Xiaotian that the reason for this phenomenon is that Ctrip management did not think clearly "can do and can not do the border."

Paradigm Redemption does not change Ctrip. Ctrip needs a new face, so ushered in the Liang Jianzhang.

Liang New Deal Rethinking "mouse + cement" mode

Liang Jianzhang This new face, has brought some changes for Ctrip.

Liang Jianzhang, who returned from school last May, Ctrip began to change, become more rapid, more ferocious: In the price war, less than 2 months, on the launch of the 500 Million dollar hotel return, less than half a year, on the launch of the 500 million-dollar ticket back; in the mobile internet, mobile products, the introduction of the density of six months, It was Liang Jianzhang's second half of the 2012 years after his comeback, and it was Liang Jianzhang's comeback.

Back in the second half of last year, there is news that Liang Jianzhang will replace fan, Ctrip at that time denied the news.

Hou Liang that "paradigm redemption" in a sense is the beginning of "Liang New Deal".

Hou Xiaotian that Ctrip is most looking forward to is the Liang Jianzhang it background. Ctrip was founded in 1999, telemarketing is a very advanced mode, Dell boarded the throne of the PC King, and Ctrip relies on a strong call center business Monopoly online tourism.

Soon thereafter things began to change, the Internet technology in the leading industry changes, the future may be the mobile internet leading industry changes, in such a context, Liang Jianzhang It background can help him to maintain the correct judgment, so that Ctrip in the next round of industrial change will not be left behind.

By the end of 2012, Ctrip's orders under the call center were still over 50%. From the second half of last year, Ctrip began to invest heavily to buy Baidu keyword, 360 web site navigation, the purpose is to increase the proportion of orders from the Internet. Hou Xiaotian that this will not bring about fundamental changes, the fundamental change is the original business model, that is criticized by the industry "mouse + Cement" Call center model for subversive reengineering.

The so-called subversive reengineering, that is, the mode of operation, or business model, or the user experience is completely different from the present.

Ctrip is currently in the mobile internet field "Everywhere" is the purpose of "happy enclosure." Hou Xiaotian that this approach is not desirable, should be "law of pressure" breakthrough, want to know what Ctrip should do, should not do what, and then a single point of breakthrough success.

From OTA (online travel Agency) transformation upgrade to OTP (one-stop travel service platform) also embodies the Liang Jianzhang of the transformation of ideas: To do the whole industry chain, to create a closed ecological system. Hou Xiaotian that this will make Ctrip more and more heavy, and the Internet, mobile internet era, light company more vitality. Hou Xiaotian said: "For example, the acquisition of travel agents, is not the advantage of Ctrip."

Ctrip, the "old tree" of China's online tourism, can be Liang Jianzhang under the leadership of the "New flower"?