Mr. said that participation in price war is only a prelude, then Ctrip has a comprehensive "price war"

Since July this year, because Ctrip with 500 million U.S. dollars in the participation and the site really gold and silver investment, online tourism price war played vigorous, its heat even more than Jingdong, suning, such as the price of the electricity and water. Yesterday, Ctrip Travel Network Senior Vice President Mr. Said, participate in price war is only a prelude, then Ctrip will start including products, services, such as the comprehensive "value war", pushing up the competition between online tourism enterprises.

It is reported that the online tourism unprecedented price war began about two years ago, such as the Art Dragon and other sites for Ctrip launched a hotel to cash promotions and other promotional activities. This situation has lasted until July 2012, Ctrip first positive response to rival price provocation, with 500 million U.S. dollars to launch "monthly crazy reduce daily low price" big promotions, hotels, air tickets, tourism and other products all let the price of the online tourism war burning.

Now, the price war has lasted two months, the results are also preliminary. Yesterday, Ctrip Travel Network senior Vice President Mr. Revealed: "The market response to price promotion is strong, Ctrip has achieved the expected performance." Take the hotel as an example, in the low-end hotels, group purchase products grow rapidly, the hotel booking volume is expected to increase the overall year-on-year growth of 20%-30%. ”

At the same time, Mr. said that the price war is only a prelude, the next phase will start including products, services, technology, brand and price of the comprehensive Service System, guide the online tourism from price competition to value competition.

Price war is a symptom, value war is the core

It is reported that Ctrip involved in the price after the war, Mango, the same process, art, such as many enterprises have announced the war or increase promotional efforts. With the deepening of competition, the preferential range between the enterprises has gradually appeared, strong network recently released the "July China Online hotel price monitoring Analysis Report" shows: Ctrip is the most strength, mango back is less than Ctrip 5.3%, art long back is less than Ctrip 21.6%, the same way net return is less than Ctrip 31.5%.

The price war has given consumers the benefits. To carry out the benefits of Ctrip, consumers live one night hotel, buy a travel products (and write comments), can easily get hundreds to hundreds of yuan of cash return, preferential margins unprecedented. The price war has stimulated travelers ' enthusiasm for buying and has attracted many people to the online booking of travel products.

The price war obtains the industry authority Personage's approval, China Tourism Research institute Dean Dai believes, in guarantees the service quality the premise, a certain level price war is necessary. This view obtained Ctrip Senior Vice President Mr. Agreed, he said, fight price war to ensure product quality, not sacrificing service quality, Ctrip at low prices while providing the same quality service.

Observers also pointed out that the enterprises will most of the profits to consumers, is bound to lead to a decline in profitability, affecting the healthy development of enterprises, individual enterprises have been a decline in service quality, which is negative for the development of the industry. Mr. Said the price war is a shallow level of primary competition, not the whole of competition. The price war is the appearance, the value war is the essence. Ctrip to enter the price war is only a prelude, in the future will be in the products, services, technology, brand and price to start a comprehensive contest. Only in this way, can embody the core competitiveness of enterprises, to create a better travel experience for consumers.

Build one-stop innovation product matrix

In fact, Ctrip involved in price war is not once whim, but in a number of areas in a comprehensive layout, especially in product innovation to spare no effort.

Looking at the development of Ctrip, since 1999 on the line, basically in accordance with the two-year development of a new business rhythm, has been in hotels, air tickets, vacation and business travel four aspects to build up the core competitiveness. In the process, Ctrip embarked on a fast-growing track and grew into a leader in the online travel market.

Entering the 2010, the online travel market is full of potential, attracting all the capital and internet giants scrambling to enter, and the industry's competitive pressure intensified. Ctrip realizes this, many sides consolidate superiority, constructs the competition barrier, specially in the hotel product diversification aspect trick choppy, several tubes under it. Ctrip Travel Network CEO Fan said: "The past nearly a year, is Ctrip in the service and product launch the most intensive one time period, density may exceed the sum of previous years, is ctrip in product coverage, product promotion on a particularly rich period of time." ”

The same is true. December 2011, with Chenghuixian Hotel on-line, using fuzzy booking mode, to provide consumers with high discount high-end hotel reservations;

February 2012, Ctrip Strategic investment of the Pine cone online line, into the guesthouse accommodation and other small hotel reservation areas;

March, Ctrip set up the top tourism brand "Honghu Yi Tour", and strategic investment too beautiful travel, the main attraction of the rich tourism market;

March, Ctrip launched a new international air ticket booking platform, add nearly million international routes, improve the international air ticket booking experience, and then with the spring and autumn, Czech and other cooperation to help customers book Low-cost Airlines;

May, Ctrip increased investment in the home network, into the high-end vacation rentals in the field of short-term booking;

August, Ctrip and booking reached a deep cooperation, a comprehensive kill into the International hotel reservation field, can book more than 200,000 hotels, covering 172 countries and regions worldwide;

August, Ctrip launched a car rental one-stop service platform, with a hi, A.V.I. and other car rental companies, in the nationwide push taxi service ...

So on and so on, with Cheng in the field of tourism long-term accumulation of professional ability and resource strength, quickly launched a wave after wave of product innovation and business layout. Cheng Fan, CEO of Ctrip, said that in order to form a competition barrier, we should build a one-stop product innovation matrix through constant innovation in the fields of hotels, air tickets and tourism resorts.

Industry veterans believe that the fierce competition and price war, can not be denied in the short term Ctrip's performance growth and cost pressure. But the long-term layout and investment of Ctrip in the field of business, will burst out strong potential and competitiveness after a period of time. When the smoke of the price war dissipates, Cheng is also the winner and leader in the online travel market. Mr. Confidently said: "When the tide retreat, there will be a batch of light butt Ota, and Ctrip is always the leading trend of the wave-goers." ”

O2O Service under the guidance of app Group

Not only in product innovation to spare no effort to participate in the price before the war, Ctrip is proud of the service field under the full effort. Since 2008, Ctrip is committed to building a strong online and offline service system, consumers buy Ctrip products, in important tourist destinations can enjoy a full set of car rental, tickets, tour guides and other detailed ground services. As a "online purchase, Offline services" business, Ctrip has been hailed as "O2O mode" of the important representative. And Ctrip has been practicing the lean service, for this "O2O model" injected a rich connotation.

Now, with the rise of the mobile internet, mobile phone online booking has become an inevitable trend. According to the China Internet Network Information Center (CNNIC), by the end of June 2012, the number of Chinese netizens accessing the internet via mobile phones reached 388 million, up 22% from a year earlier. After the telephone, network, a new consumption pattern is rising.

Ctrip to see the revolutionary opportunities in the field of mobile Internet, as early as 2010 years, the introduction of "Ctrip Wireless" strategy, now not only to create the industry's leading app group, and will be in the telephone, network field accumulation of online, offline service capabilities, a comprehensive introduction to the app group application areas.

At present, Ctrip Wireless application Group contains Ctrip wireless, Ctrip Hotel discounts, Ctrip tourism, Donkey rating nets, Tieyu and other five apps, but also with the high (navigation), Fly Changzhun (flight information), passers-by network (vacation rentals), Pine Cone Network (INN reservation) and other cooperation, expand the application of service content, to create a one-stop service capacity.

Today, Ctrip Wireless Application group can realize online inquiries, booking domestic air tickets, hotels, local tours, as well as hotel reviews, instant payments, LBS (location-based services), high-speed rail inquiries, real-time flights and other travel-related all "closed-loop" reliable services, and to create "the best products, best price, best service." At present, Ctrip wireless active Download volume has exceeded 15 million, covering a network of six clients, Ctrip's wireless business in OTA in the advantages of the leading edge is also recognized by the industry's secret.

Industry analysts point out that Ctrip in the 13 operation, has formed a leading brand appeal, and has a strong technical team, with the continuous strengthening of products and services, will be able to continue to unrivaled in the long-term value war, and price war is only one of the means to achieve this goal.