Online travel business profits fall market share is scrambling

Absrtact: In recent days, several online tourism companies announced the second-quarter results, in the continued to hit the market share of the money, a number of enterprises net profit fell sharply. A number of enterprises have said that the first task is to rob to increase market share. Analysis indicated that at present

In recent days, several online tourism companies announced the second-quarter results, in the continued to hit the market share of the money, a number of enterprises net profit fell sharply. A number of enterprises have said that the first task is to rob to increase market share. The analysis points out that at present each family is in exchange for the short-term profit to obtain the bigger scale and the share.

Earnings show where to go the second quarter total revenue of 400 million yuan, an increase of 127.3%, but attributable to the shareholder net loss of 422 million yuan, the same period last year net loss of 41.2 million yuan.

Where to? continued high investment in exchange for market share, air tickets, hotels and other business growth is obvious, but the second quarter operating costs of 724 million yuan, the year-on-year increase of 332.31%.

A number of tourism enterprises in the scenic spot tickets, hotel reservations hit the money to rob the market. As a result of marketing, management costs rose, the second quarter of the operating costs of cattle 159 million yuan, an increase of 287.4%. As the operating costs soared, Ctrip's net profit for the second quarter was 135 million yuan, down 36% year-on-year.

Companies are scraping the market share

Some insiders pointed out that, in the current market competition is fierce, each family in the short-term profits in exchange for greater size and share, "false" to a favorable position, in order to strive for greater development space in the future.

Ctrip said that this year is the company to increase strategic investment in the year, the first task is to quickly increase market share, investment is mainly used to improve the user experience, expand the mobile market leading position, strengthen IT support and consolidate one-stop tourism services platform.

Competing for market share is also a common goal for many online tourism companies. Where are you going? CEO Zhungchengsu also said that the tourism market in the competition either success or failure, the company also has to support the development of cash, the company is not too concerned about short-term losses.

The recent Ctrip and Priceline announced further cooperation, and Expedia also said will continue to support the Arts Dragon. Where to go the network said that their cooperation will not affect the industry's competitive situation, the company is committed to serving the global OTA.

Compared with last year's industry price war smoke, the current online tourism a wide range of price war no longer, the home is also the promotion of resources into the main push business, wireless business has become the focus of contention, has begun to bear fruit.

Data show where to go to the net wireless revenue accounted for 35.5% of the total income, Ctrip two-quarter mobile phone turnover was three times times the same period last year, the peak value of the daily turnover of 220 million yuan.

In addition, Ctrip continued to buy in hotels, ticketing, leisure tourism layout, the same process continue to exert the distribution of scenic tickets market, where to go to the network is to continue to intensify competition for hotel resources, layout of leisure tourism market.