Is the pedestrian cow the only product of the online travel?

Absrtact: April 4, the travel network to the SEC submitted an IPO prospectus, the official opening of the U.S. Listing tour. The first public offering, the scheme raised $120 million trillion, is one of the smaller funding companies to be listed this year. But analysts around it estimate

April 4, the travel network to the SEC submitted the IPO prospectus, the official opening of the U.S. Listing tour. The first public offering, the scheme raised $120 million trillion, is one of the smaller funding companies to be listed this year. But analysts are divided over their valuations, with a wide divergence of estimates and divergent views. In reducing the performance of the cattle and business model found that, although the loss of passers-by, but the situation is not so gloomy.

Pedestrian cattle are engaged in the business of online leisure travel, that is, we often say that the real tourism retail business, directly into the specific tourism products, rather than ctrip and art such as hotel and ticket booking. This business compared to Ctrip's light model, is the more heavy mode of online tourism, the current penetration rate is not high, the market is highly dispersed, but in the next few years will maintain a faster growth rate.

The biggest advantage of the bull is that in this fragmented market, the largest chunk is retrieved, and the online tour market accounts for 17.6% of the share. 70% of the turnover of cattle from overseas, is the Maldives's largest online travel retailer, every 10 Chinese tourists to the Maldives, one is the way cattle brought.

and Ctrip to do a first-tier city, 40% of the business from the second-tier cities, the future will be more than half. This is the way cattle consciously keep distance from the Giants, do differentiated business direction to obtain growth space. Although the pedestrian cattle is not very large at present, but at least in the line of Tourism subdivision area, the passers-by or the accumulation of a considerable degree of superiority and status, has not been visible opponents by the market awareness.

The online service model of the pedestrian cattle is heavier, with hundreds of travel advisers and more than 10 tourist centres under the line. One of the big questions about online tours is how to effectively control the service process to achieve the best user experience. Under the existing conditions and circumstances, in addition to spending some extra cost to do, there is no other way, which seems to be the cause of the high cost of cattle. Of course, this is not a low threshold for competitors.

On the line, the model of the passers-by IS rather light, do not access too many business links to maintain focus, the tourism process in all aspects of the decomposition of the open procurement, they are focused on tourism retail services. The main purpose of this business model arrangement is to keep the business competitive and avoid the risk of lengthening the line of business. In the wooing many suppliers come in together to do at the same time, the passers-by or a a-share listed companies are the first major customers, turnover has surpassed the letter tourism, and the growth rate is twice times.

The total revenue of the past three years is 772 million yuan in 2011, 1.12 billion yuan in 2012, 2013 1.962 billion yuan, the data shows that its growth has entered an accelerated state. Niutong Ctrip, although the same online tourism camp, however, the depth of the business involvement of the cattle, but also make the pedestrian in the business model closer to the retail electric, with the group tour products equivalent to cattle from the travel agency purchase, and then sold to consumers, rather than to B-end and C-end customers simple matchmaking. Therefore, in the way of revenue recognition, the pedestrian cow and Ctrip are different is normal.

Unlike the general operating situation of the retail electric dealers, the sputter has been controlling the marketing expenses among the trading volumes for many years, and if the standard of electric power is to be examined, it is undoubtedly excellent. And in terms of gross margin, the bull is also growing rapidly, the data in 2011 for 3.1%, to 2013 has risen to 6.2%, which means that the business of the cattle in the rapid amplification, has begun to have a scale advantage, through efficiency and cost reduction to reduce the loss.

Although the annual loss in the past few years is about 100 million yuan, the proportion of losses is decreasing with the increase of scale. The loss rate, which accounts for only about 2% of the turnover, is close to profitability. Although the current bull is not profitable, but the cash flow has been positive, last year was 117 million cash flow, the end of last year, the company's more than 700 million books, more than the total amount of financing since its inception. Of course, a large part of this is the need to pay to the tourism industry accounts payable, the cow's own funds in the 300 million yuan.

Passers-by in the closing of the U.S. stocks handed over this answer, the data level looks prosaic, but it is easy to think of the same year the loss of the only product will be listed. People in accordance with the standards of online retailers to look at the only product will often find its condition is miserable, but only the concept of the product will be unique, in the market segment occupies a place, listed in the stock price has been shown. The current situation of the passers-by is similar to that of the cattle.

The development of online tourism market in the past more than 10 years, people should realize the fact that Ctrip is not the only feasible mode. It is also a viable way to combine online travel with the offline business. Of course, the problem also lies in the lack of competitors in the segmentation area, which leads directly to the market understanding of its model is not enough, in the case of a large difference in valuation issues.

Ctrip and the art of the fierce competition in the pattern, passers-by can stand out, in fact, the entire online tourism market is a good thing. Just as yy in Tencent under the pressure of successful listing, differentiated services to find a living space, can always bring people with hope.