Many online travel involved in the merger and the hatred

Summary: You may have played the ultimatum game: Two participants to divide the money, assuming that the proposer of the proposed press 2:1 to allocate, if the response to accept, then the proposer to obtain the maximum benefits; If the response is refused, neither party will receive any money. It is said that carrying

You may have played the "ultimatum" game: Two participants to split the money, assuming that the "proposer" proposed by 2:1 to allocate, if the response to accept, then the proposer to obtain the maximum income, if the response refused, neither party can get any money.

It is said that Ctrip to where to open the purchase terms and "ultimatum" game is very similar: the two sides to 100% for shares of the way to merge, the ratio of exchange for 1:2. Once the agreement is reached, where to go will be returned to the city, the company merged Ctrip. However, where to go is very likely to reject the condition of Ctrip. The CEOs of two companies have shown themselves ready to act alone to become the absolute winners of online travel.

If the merger is to be negotiated again, it is advisable for both parties to prescribe mutually acceptable terms. But now they seem to be more willing to rely on "brute force" to overcome the obstacles ——— the latest round of "going to war".

"To carry the merger" repeatedly talk about failure, but also repeated failures, more and more OTA company also involved in it.

Ctrip's battle

On many occasions, Sequoia Capital founder Shen has called Ctrip a "premeditated enterprise". The word "premeditation" was used very aptly.

China's tourism in the 2014 was the start of the "ticket price war" instigated by Ctrip. At the beginning, we also wondered why the industry is the absolute leader of Ctrip to pick at this time to declare war? What are the driving forces behind the "two-way" war? Soon, the answer with Ctrip Lightning shares the same process and passers-by, Ctrip overnight become the second largest shareholder and announced.

In the same tour CEO Wu Zhixiang View, the attractive place of the deal is, "the tragic ticket price war can be ended, the same process can continue to develop independently." ”

Is that what this is all about? Ctrip Chairman and CEO Liang Jianzhang had received an interview with the south, revealed that the message is, "Ota hegemony of the journey is far from over, price war at least another 3-5 years." ”

In early 2012, Liang Jianzhang back to Ctrip, as chairman of the Post, began the behind-the-scenes command of the "price war." He later said to the South reporters, "if there is any regret in 2013, is the start of the 2012 years of the ' price war ' scale is not big enough, promotional efforts are not ruthless." ”

This decision is not only related to the final course of Ctrip, but also to promote the online tour of the war overall upgrade ——— Art Dragon, the way cattle, the same journey, Mother donkey ... More and more O T Company is involved, even the bat behind the scenes to help.

And now the latest "war" is, Ctrip and the same network together "encirclement and suppression" Where to go, at the same time, where to put the next ticket and intimate vacation search. Ctrip's argument is, where to go the flow is not as expected. Immediately, where to also stand up to respond, is their own initiative under the "Two-way" ticket resources, and, orders do not reduce the increase.

No matter what the truth, there is only one ——— "art" war, "two-way" war died down, now is, "to carry the war" fight!

Negotiations are deadlocked again.

Here, Ctrip in the most ups and downs of the way, to the industry to show the online travel market and the relentless war. In other words, whether this also means "direct acquisition to where" did not, Ctrip began to adjust the strategy to the surrounding online travel company "first soldier after the ceremony", then "alliances", North antithesis "where", relying on "brute force" to overcome the obstacles to negotiation?

Facing the problem of reporters in the south, Ctrip to the evasive answer, "Our investment strategy has not changed, always put its own development in the forefront, so we will be more focused on three types of investment: one is to help strengthen or expand the product line of the company, the second is to help expand the geographical market of companies; ”

Prior to that, the rumor is that ctrip this year to go to where the acquisition terms and "ultimatum" game is very similar: the two sides to the 100%-share approach to the merger, the ratio of 1:2. Once the agreement is reached, where to go will be returned to the city, the company merged Ctrip.

Obviously, this distribution is not going to be acceptable. Where to go to the network related responsible for reporters said, "At the outset, Baidu has considered its own to do a tourism search engine, but because of this technical barrier content is too high, finally chose the capital holdings to where the net." On this platform, go to where the net has huge amount of data, complete is the cloud question and answer, greatly reduce the flow cost of information. And the US online travel website TripAdvisor to 2013 years to follow where to start paying deals, which means that the business model of where to go is beginning to be widely accepted by investors. ”

More bluntly, "The travel search engine model to the international market output, access costs and barriers are lower, where there is a better space to imagine." Now, where the market capitalisation may be half of ctrip, or even less than half, but perhaps, by the end of the year, to where the market value can be soared. Dingdao, director of the Institute of Rapid Transit Research to the South reporters further analysis.

But Yang Yanfeng, an analyst at the China Tourism Research Institute, said: "If you go with the merger, the overlapping lines of business must be consolidated." In other words, where the hotel direct business is likely to be stripped away. In this way, only a traffic growth of limited space tourism search engine, where to be able to value geometry?! ”

In fact, "the merger talks are deadlocked because of huge disagreements between the two sides over valuations and control." "Close to Ctrip, where the people informed the South reporters."

Repeatedly talking about failure

In the ultimatum game, the participants are not aware of the current distribution is fair, because the opportunity only once, the game can not be repeated. In the realistic version of the "Go with the game", "as early as 2011, two companies have had a round of acquisition negotiations, that time, the two sides only because of the expected difference between the bids 10 million, finally talk about collapse." And then is what we see, the court to meet each other, digging horns, saliva war and so on. "Do not want to disclose the name of the internal staff of the South are reporters, to the 2013 years, 2014, both sides of the senior executives again to the negotiating table, consultation and cooperation."

Also in 2011 that year, Baidu to 300 million dollars in capital injections, access to where net over 60% equity, the same year, ZHUNGCHENGSU successor Dafory, did go to where net CEO. The dramatic reversal of the plot on this staged, behind the fact that the development of more than Ctrip Big Brother to destroy the "San" of the original intention.

"Once the opportunity is missed, Ctrip has to pay a huge purchase price: In a short span of 3 years, to where the market value has turned five or six times times, more scorching is, where to actually have been zoned Baidu Department of the Territory, ZHUNGCHENGSU has been a shareholding ratio of only about 7% of the professional managers. Ctrip want to take down where, pass the Baidu this clearance just line. "The network founder Wei Changren to South All reporter analysis, if ZHUNGCHENGSU finally choose to leave, where will go?" If the integration of Ctrip system, it will be able to generate tens of billions of dollars in market size of online tourism companies? "Where the details will affect Baidu to choose ' where ' to buy or not to sell?" ”

Repeated failures and repeated talks

It is not difficult to understand, "to carry the merger" why repeatedly talk about failure. In turn, why do we have to talk about the failure of merging? For this question, Ctrip and go where the official declined to comment.

"China's tourism market has a lot of potential," Liang Jianzhang said in a financial analyst meeting earlier this season. Some enterprises after years of development, in some products or areas of the leading position, we are more interested in these companies, secondly, some companies can complement the business of Ctrip's business and products, cooperation with such companies can also improve the coverage of Ctrip products, and create synergies. ”

Of course, cooperation failure is another kind of result, which creates mutual exclusion. "Fundamentally, Ctrip and where to the enmity from the convergence of profit patterns, to where to rely on tourism search engine bigger, must also take commission mode, because the click Fee and advertising fee is to rely on large flow to support." And Ctrip continue to go down is ' platform ', equivalent to the online tourism of Jingdong Mall. "Where to go?" said Dai, a former executive at the network, to the South reporters, China's online tourism enterprises are all to Priceline as the goal, including Ctrip and where to go. But compared with the Priceline, the biggest difference is that the hotel and other traditional o T business is to take the form of underwriting to do, have the ability and the courage to digest the tourism market inventory products.

This is the pain point of reconstructing China's online tourism business ecology.

"At present, the entire online travel product booking, including hotels, air tickets or business travelers, in the future, leisure tourism population consumption ratio may be increased." In this process, the ' peak ' of product supply is always a problem. In other words, in the non-business travel city to provide services, OTA big guy is not in stock, and our hotel group is to fight against inventory. "Such as the family group CEO Jian to south all reporters as frankly."

Liang Jianzhang once said, based on the success of Priceline case, Ctrip is fully likely to become the first echelon of the giant technology companies. Zhungchengsu has also said where to go the future goal is to become kayak+tripadvior+priceline and other companies in the Chinese version. Perhaps, great minds alike, do "Chinese version of Priceline", to the Chinese online tourism market to create new value, this is "to carry the merger" the basis of the negotiations.

If the ultimate hegemony of China's online tourism is to be assumed to be an end, Liang Jianzhang to reporters in the south to estimate, "in the future, China's online tourism consumption will account for the entire Chinese tourism market 70% of the share, of which the top five of the OTA enterprises accounted for 80% of the market share." ”