Last single product core hard to profit point

Source: Internet
Author: User
Keywords Travel products single tail the channel on the line drift tail prices will be
Tags agencies agency agents app based business channel compared

Landing in the United States NASDAQ two months, the domestic online travel sites way cattle travel all the way high. At present, way cattle prices have been successfully doubled. This is the focus of this year's way cattle and special tourist travel is closely related. From April 11 channel sale trial operation, to upgrade the platform in June proposed the strategy, and then to July the official launch of the Tuniu sale channel, "pass cattle sale" so that online travel companies saw a new sales model. For a time, where to go online, Ctrip, donkey mother and other online travel businesses have opened sales channels, but the tourism industry is the most evaluation of this "gimmick-based, difficult to sustain." Seemingly promising concept of the only travel products in the travel industry, how long can we last?


Way cattle cheap "drift tail" sweet taste

Beijing Commercial Daily reporter login Tuniu sales channel saw the dazzling tail of a single product is flooded with various low-cost website page. Such as "Qingdao - Australia 10 Days Tour Cairns" products, the original price of 17,299 yuan / person, the price is only 11,696 yuan / person, a discount of 6.8 fold. "Royal Caribbean Mariner Shanghai - Jeju - Fukuoka - Nagasaki - Shanghai 5 nights 6 days" product, the original price of 8,299 yuan / person, the current price of 3999 yuan / person, a discount of 4.8 fold. The "Nanjing - Bangkok / Pattaya 5 nights 6 days romantic tour" products, but also reached 3.7 fold, the original price of 2680 yuan / person, the current price of 994 yuan / person.

Way cattle network responsible person to the Beijing Commercial Daily reporter, as of May 20, the pass cattle sales channel has been successfully linked with hundreds of suppliers, introduced nearly 100 sale products, the price advantage of 100% sale of high products Sales rate, access to the cooperation of suppliers alike. Trial operation for three months, the sale channel has been done daily on the line 20 Weihuo new products, hundreds of seats 2 explosions, suppliers through the sale of channels launched explosions and Weihuo products, covering more than 50 domestic and exports A popular destination, the number of bookings in May was nearly 20 times higher than in April.

Way cattle network no time two scenery, but this model is also vaguely see another to the end of single-name e-commerce site - the only product will be.

It is understood that it is the only product that has become so popular in the capital markets that Tueniu has created the idea of ​​following its model in the travel industry. April 11, the way cattle on-line sales channel trial operation, and the only product will be different is that way cattle travel network to sell the tail cargo is a holiday product. The industry believes that the surge in price of cattle way to a large extent thanks to the concept of the Pond Pong near the Council. As we all know, the only product will rely on clean-up inventory for the brand concept, with the "tail sale" model, the stock price soared from the initial 4.6 US dollars all the way to the recent 200 US dollars. Way cattle also rely on the concept of the only product will rise from the lowest 8.52 US dollars more than 18 US dollars, to achieve share price doubled.

In the eyes of high-level passers-by, the sale of channels, "Money King" is limitless, according to cattle Niu Chen, vice president of introduction, the tourism industry is more than physical goods, the only product will be the platform for mode to digest the prevailing industry supply Commercial control caused by the inventory pressure, in order to timely return of funds to expand product size. The upstream suppliers of the tourism industry accounted for about 5% of the total inventory. The entire scope of the Weihuo market ranges from 5 billion to 10 billion yuan, with a huge potential profit market. The "tourism sales will be" a blue ocean.


Last single sale subsidiary conventional distribution

However, the fact that the industry is currently recognized is that it is still difficult to maintain the survival of an enterprise at the end of a single sale. En route to the end of the single-way sales in the cattle market, obviously more than anyone should be clear that the end of the tourism tourism sales pain point. Although the way cattle are still in full swing to create the only tour of the tourism industry, but the role of the tail single mode is changing.

One investor pointed out that Tuniu might borrow the concept of Vipshop to raise its share price to obtain short-term capital gains and use the proceeds to fund its future layout. Vipshop will create the myth on Wall Street, and most investors do not understand the difference between clothing sale and travel product sale. In fact, Touyou's stock has gradually stabilized after it rose to about $ 18.

In addition to relying on the concept of the concept of unique products speculation stock prices, King Brigade consulting CEO Wei Changren said that the way cattle more hope that the end of the tourism single-sale model for its website leads to traffic. At present, sale products are sold both on the PC side and the App side of the way cattle, while the product on the way is only available on the Way cow App client. As we all know, in the era of mobile Internet, App traffic is the key to the future.

For this argument, the relevant person in charge of cattle did not give a positive recognition, but said that the cattle pass channel is a breakthrough mode of operation of innovation, described as "three birds with one stone," the user directly to enjoy the benefits brought by businesses, and Way cattle and suppliers are fancy the associated benefits and win-win cooperation.

However, in the eyes of an online travel operator, in terms of the product structure of the transit cattle, although it has been advertising the concept of travel only, the essence of the transit cattle is still the distributor of conventional travel products. This also means that the way the tail of the cattle and the sale of conventional travel products left-hand right there is the problem, the sale of conventional tourism products, value-added ancillary products, there are some conflicts in the two business, Will be divided on their regular travel product distribution efforts.

Public information shows that currently there are a total of more than 80 kinds of road cattle for consumers to choose from, and its daily on-line 20 Weihuo new products and hundreds of products sold in the proportion of the total business can be imagined. Relying on the original model, Tueniu received a revenue of 1,962 million yuan in 2013, but its gross profit margin in 2013 was only 5% with a net loss of 79.6 million yuan. If the way cattle fully restructured tail single sale, the face of lower gross margin, operating pressure will be greater.

Wei Changren said that the way cattle valued the end of the single sale of products seats is very limited features, popular products in a few minutes was robbed light is very common. Consumers are the end of the single sale of products with the impact of the price to attract the way cattle, because they can not grab the order, some of which consumers will be converted into a routine tourist products cattle consumers. At present, the way cattle have been transferred to focus on the second and third tier cities, while the second and third tier cities, consumers are very sensitive to price.


Last single product core hard to profit point

It seems the industry, Tu Niu mouth in the scale of 50 billion -100 billion Weihuo market, in fact, difficult to become the core business profit point, which supports the whole company's revenue.

Travelzoo Travel China CEO Hongwei introduced travel tailgates a long time ago, although the travel agents take the product from the product makers will be able to estimate their own distribution capabilities, but it is inevitable that when the estimate is too high, and then Coupled with the off-season tourism, unexpected events and other reasons, which resulted in the existence of a single tour tail.

What is the end of a single tour? Beijing Business Daily reporter found through investigation that there are mainly three kinds of situations that can produce travel tail orders at present: firstly, travel agencies usually make large-scale purchases similar to charter flights or hotel rooms, , Or guests temporarily retirement, travel agencies to reduce the loss will be the remaining location for sale at a discounted price, but this channel out of the end of a single starting time is more urgent, such as domestic travel is often departure within 35 days; followed by airlines, This is actually a common way for airlines and hotels. It is usually the one or two days prior to the check-in date for a special discount on rates, and the hotel is keen on launching on the afternoon of check-in day Lastly, the wholesaler will pack the product for distribution and the rest of the product will be packaged. After the off season, the travel wholesaler will sell part of the remaining products in various channels, such as travel agencies, in advance to sell at a low price. Compared with the tail end of a travel agency, this tail end product will have a longer departure time and more time Advantage.

In fact, the way cattle is not the first site to do tourism sales in the country, long before the concept of the introduction of travel sales, love travel network, come and other sites have been doing this concept. The end of a single tourist products, but also since the birth of the industry has been there. An industry official who works for a large travel agency in China said that without travel agents, travel agents and other travel sites, travel agents near the group will be in the period, by text messaging, the form of low-cost products Sales to friends and family around, then the product's price has been basically close to the reserve price.

As we can see from the revenue structure of Vipshop, 40% of its revenue comes from the apparel industry, and the apparel industry is precisely a high-inventory industry. The financial statements for the first half of this year showed that the inventories of 42 listed clothing and textile enterprises in China, including Li Ning, Anta, 361 °, Xtep and Peak, reached a total amount of 48.3 billion yuan. The apparel industry's practice is to maintain inventory below 45% is reasonable. And compared with the apparel industry, the tourism industry does not have such a large inventory. Sales of a travel agency said that usually only a single line of the tail end of 5-10 seats, it is difficult to support the economic benefits of starting cattle.


Difficult to distinguish true and false consumers

Although Touyou tried to imitate the only product Wei Huo sale pattern, but the sale of clothing and tourism product sales there is a huge difference. On the one hand, the sales cycle of clothing inventory is relatively long, while the sales cycle of inventory of travel products is relatively short. Consumers should pay close attention to the information needed for preparing a visa after they have finished booking their products, and even some consumers who have completed visa processing will be qualified to make reservations , Which in fact created a bad experience for consumers.

On the other hand, the only major clothing industry, the gross margin can reach 50%, can deeply shock consumers through deep discounts. However, the gross profit margin of normal tourism products is only 15% or so, so high discount tourist products make many people in the industry find it hard to understand. Relevant personnel travel agencies, travel tail price looks very attractive, but the conditions are quite a lot, and quite a number of hidden consumption. For example, travelers to the destination but also to the local tourist guide extra hundreds of dollars of "attractions fee."

There is also a lot of urgent travel inconvenience. The starting date for cheap products to consumers Amoy usually within a week or two, which makes many people helpless "missed the opportunity", while the starting time of a little late, the price is relatively expensive. In addition, with the date of no time to prepare compared to the earlier or late flights will also reduce the degree of tourists experience, if the arrival of tail-end products Amoy to the starting city is not in the city where tourists live, this distance transport costs You need to patronize.

Although most of the products on the way can not find the same products on other sale websites, there are still some products sold on other sale websites. The Beijing Daily News reporter compared these products and found that the price system is very chaotic.

For example, on July 22 departure of the "Princess Cruises Sapphire Princess Shanghai - Jeju - Shanghai 3 nights 4 days" products, Beijing Business Daily reporter where to network, playing bhifu travel network, poor travel online have seen this product, Where the network marked Original price 4599 yuan / person, price 3599 yuan / person, the supplier for Suzhou China International Travel Service Co., Ltd.'s travel network. In the poor travel online, this product is priced at 3299 yuan / person, the supplier for the cruise ship travel network. While the same product although the current price of cattle network is 3599 yuan / person, but the original price is marked as 5999 yuan / person, on the supplier's information also did not elaborate.

In this regard, Wei Changren said the current sale of the tail end of the site constitutes a single, roughly divided into three major components, namely the real end of a single travel agent, web site to do the tailgating of money and after the end of a single package after the package. The end of the web site to do the tail of a single stick, in fact, is to win the eye of consumers. After wrapping the end of a single, then it has undermined the consumer experience.

According to McNally Travel Network CEO Chen Sheng introduction, travel product details vary widely and difficult to quantify, so that the flaws have got started. "Normally before the Japanese travel to 6000 yuan / person, the basic cost of travel all-inclusive, live in four-star hotel.After the package of the end of a single, then the four-star hotel for the economy hotel, red-eye flights from and back, And then compress some of the cost, the product price made 3000 yuan / person, compared to 6000 yuan is a special 5 fold, but this 5 fold is really 50% off? "In this regard, way cattle responsible person simply said , Turnbull on-line sale products are provided by the supplier, pass cattle only responsible for online sales and provide price recommendations.

Industry Watch

Way Oxtail single can "three birds with one stone"

For online travel by the end of the travel speculation hot market, the traditional travel agency is quite helpless. A travel agent told Beijing Commercial Daily a reporter, online travel companies have money to subsidize the line, the tail of the manufacture, but many of the prices are false, such as when you want to book the other said no, price increases, the price Insensitive travelers will buy it. The end of a single travel agency will go to the traditional channels to sell. The salesman said: "If the electricity supplier, they are even after the price, the price we give them is still lower than the price, which is not conducive to travel brand protection."

Today, Tuniu tries to nudge in this market. According to the way of cattle planning, travel agencies can develop their own platform Weihuo products, and their own pricing. However, way cattle will give guidance price, usually the sale price of the guide price of about 50% of the market price. For this part of the business, Tuniu is currently not profitable target, only to the technical costs incurred by the transaction charge suppliers 2% collection and payment fees.

However, the current end of cattle on the line of the end of a single tail market in the whole tour is nothing but a lot of travel, many travel agencies are not willing to be the end of a single way to pass cattle sites, and even the way cattle are full of conflict, have said the end of the road cattle Single-mode hard to long-term. Hong Wei said that travel agencies do not accept, not optimistic about the way cattle, because the end of the way the cattle cow alone will never be able to achieve the travel agency, consumers, way cattle win-win situation. In this chain, the travel agency will have to use the "relatives and friends regiment" approach to the distribution of tail orders to get on the way for sale on the way cattle, cattle earned a commission, consumers get the discount, but the travel agency did not get any benefits . Once the travel agency passes the last order without reservation to the passer-by, the tail-bound tourism market will soon break the existing price system. The way cattle once mastered the power of speech, big tail single mode, will inevitably "abducted" travel agents divide their profits.

Obviously, way cattle official does not think so, the relevant person in charge of the Beijing Commercial Daily told reporters that the sale of channels will play a great role in helping travel agents, rather than occupy their interests. When the supplier encounters a situation with only a few seats left and the group period approaching very much, it will recover more losses than selling the machine in time to lose money.

Wei Changren said that in fact, the inventory of tourism does not have to find more cooperation to the degree of agent distribution, even if one day the end of the travel products really more than enough, travel agencies are more inclined to build their own platform to sell inventory.

Beijing Commercial Daily reporter Cheng Tuo / text

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