Online travel melee burning money War makes people look shocking

The internet industry, behind the real play is capital. From the Thousand-Regiment wars, the drop-fast showdown to today's online travel melee, burning money never seems to stop. The recent Tourism O2O field of the four major online tourism companies in the collective losses, but also let the outside world some.

Ctrip, as the domestic online tourism market boss, the first to join the ranks of the loss. Ctrip in the fourth quarter of 2014 net loss of 224 million yuan, this is the company's first loss since the IPO.


where to go, 2014 the total revenue for the year 1.7568 billion yuan (283.1 million U.S. dollars), an increase of 106.5%, but at the same time, 2014 to where the annual operating loss of up to 1.8448 billion yuan (297.3 million U.S. dollars).


, 2014 net income of 3.5 billion yuan (together 569.7 million U.S. dollars), an increase of 81.3%. At the same time, total losses in the four quarters of the year, the net loss of 2014 reached 447.9 million yuan (72.2 million U.S. dollars).


Art Dragon, in the fourth quarter of 2014, net revenue of 246.2 million yuan (about 39.7 million U.S. dollars), but 2014 the same net loss of 269 million yuan, the amount of losses compared to last year further amplification.


in fact, the loss of far more than the four travel O2O companies, almost all the travel O2O are in the red. Liu Yan that the tourism O2O platform will be so crazy to smash money to rob the market, in fact, is in the sprint before the acceleration. At present, the Tourism O2O field is in a two-strong era, has not completed the formation of a foregone conclusion, but the next 3 years or so, tourism O2O this market will certainly usher in the era of oligarchy. For all the tourism O2O platform, if you do not burn money now, then there will be no chance to burn money. Under the impetus of the capital, the following five major fields have become the main battlefield of the tourism O2O burning money war.


Hotel O2O


Hotel is the center of contention for the tourist O2O. Prior to the hotel group purchase, the market share of online hotel bookings is almost carried by Ctrip, where to go, art Dragon These three are divided up, through the online booking of the hotels are almost all of the economy-oriented hotels. And after the emergence of group buying, but also concentrated in the budget hotels, but the low price of hotel group purchase but the previous online hotel booking poses a serious threat. Compared with the traditional Ota, hotel group purchase has a great advantage:


First, the hotel group to take the form of payment, once the customer paid the first online, customers to the shop rate can be greatly improved. According to statistics, the hotel buys to the shop rate can reach 90%, this greatly surpasses the traditional OTA to the shop rate.


second, for businesses, some hotel occupancy rate is not high in the period of low price buy out, so as to guarantee the rate of return, but also through group buying to promote brand, and even some often like to buy users into their own loyal users, so many hotel businesses are willing to cooperate with group buying site.


its third, the hotel buys the price is often relatively low, this is much lower than the traditional OTA's on-line hotel reservation, has the very big attraction to the consumer. Liu Yan I go out and often through the online booking and buy to reserve hotels, contrast I will find the same star service hotel, you through the purchase price of at least than online booking stay more than one-third lower prices, naturally I would prefer to choose the way to buy. Unless it is on some holidays, the hotel does not buy promotions I will choose the way to book online.


its four, the arrival of the mobile internet era, let the hotel O2O rise greatly. Many people will directly through the mobile phone to search the nearby hotels, and group purchase with the help of maps, mobile apps and other applications accounted for the opportunity, greatly stimulated the local market demand for hotel products.


since the hotel group purchase compared to traditional OTA has obvious advantages, the online tourism platform began to turn to the hotel O2O, and into the hotel group buying, snatch market share, the cost is greatly increased, profits dropped sharply.


first, the original major online tourism platform hotel reservations mainly concentrated in the one or two-line city, in these cities to start group buying cooperation will have some resources to accumulate. But in the face of the United States and the public comments have entered the three or four-line city, the online tourism platform can not give up this part of the market. So starting last year, where to go, Ctrip and other tourism platforms have launched a massive attack on the three or four-line city, and group buying site to launch the hotel O2O competition, which in part led to the loss of online tourism platform.


second, for the hotel online booking platform, to enter the hotel group buying also accompanied as the price of the lower, naturally means that the profit margin of the sharp reduction.


Third, labor, advertising costs increased significantly. In particular, to enter the hotel O2O, through the line, need a lot of push personnel.


second, ticketing market


When it comes to the ticketing market, air tickets are one of the most permeable areas of the online travel platform, and this area is almost ctrip and where to go. Many people say that the current domestic online tourism is divided into four factions, respectively, Ctrip, Tencent, Ali and Baidu Department, in fact, are just parrot. If said Taobao travel belongs to Ali Department, this naturally speechless; say where to belong to Baidu department, also barely reasonable, in fact, although Baidu accounted for 70%, but operations management is entirely to where to fight alone, but to say that Art dragon, the same way and so belong to the Tencent department, poor tour, etc. belong to the Ali department, it is completely unreasonable, after all, Ali Tencent is only a strategic investment, can not say that Ali, Tencent investment, the tourism platform with Ali or Tencent surname, then there are so many shareholders can agree?


so don't think bat is so scary, don't have anything to do with bat, in the future of networking, artificial intelligence era, there will be a new company to subvert bat. Take the ticket online ordering, Ali and Tencent how much market share? Real Impact on the online tourism platform ticketing market, or buy and O2O, especially the tourist attractions of ticket buying.


before the advent of the O2O, the online tourism platform in addition to the air ticket booking is more popular, the other actually did not have much market share. Train tickets are still on the line and the ministry's official website to buy, while tourist attractions tickets and car tickets are very few people through the tourism platform to buy.


O2O and group buying appeared, detonated the tourist attraction tickets online purchase. The face of the United States, the public comments, Baidu glutinous rice, such as the step-by-step ban on the site, the tourism platform has to come out to compete, but also launched tickets to buy and competition. As with Hotel O2O, to rob the market share nature also causes the profit to fall, the loss also is normal.


three, car rental, bus market


Mobile internet era has sprung up a lot of new companies, drip, fast two big taxi companies from the battle to the final combination of the domestic tourism car rental market. So, Ctrip, where to go and other tourism platforms have started to enter the tourism car rental market, and launched a car rental, car and other services, Ctrip also invested easy to use cars.


but to eat the tourist car rental market, the online tourism platform is facing a very small competition. Short-term taxi market has been the drop of fast occupied, there is no tourism platform what play. and the car market area, the Shenzhou rental, a hi car rental and so on which one is not weak, but also faced with a car from the PP, treasure Car rental, friends, such as Peer-to-peer Car rental platform competition.


For the online tourism platform, the introduction and expansion of new business also requires a lot of manpower, material resources, financial output, not the loss is strange. But to create a complete O2O industry chain, car rental, the bus market is also a tourism O2O platform to do, for tourism o2o, eat, play, live, line indispensable.


Four, leisure tourism


Leisure Tourism for the major online tourism platform, it is a very fierce competition in a field. At present in the domestic market, leisure tourism occupies the entire tourism market share of about 20%, but with the continuous development of the economy, people's income level, cultural taste of the continuous promotion of the future domestic leisure tourism market share will be flat with the developed countries, to 50%.


in recent years, self-driving tour, self-help tour, RV tour, such as the rise of new forms of leisure travel, but also let the major online tourism platform began to gradually transfer the focus of the tourism market, and have launched a "roaming" type, free line, half self-service travel and other tourism products. Therefore, the leisure tourism market has become a major online tourism platform for the new battlefield, starting last year, this field officially ushered in a rattling, smoke of the "chaotic war" era.

Where
going? The net specially "the consumer may use 1 yuan maximum to redeem 500 yuan cash red envelopes"; Ctrip Travel Network launched the first "buy one get one" preferential activities, the same way, the cattle also launched a Yuan ticket activities ...


v. Wireless Market

The rise of
mobile internet has led to the all-round development of O2O, and the o2o of tourism has arisen greatly. Compete for the wireless market, Occupy O2O This commanding point also became each big online traveling platform's most important. No matter where to go, Ctrip, or the way cattle, the same journey and other tourism platforms will focus on the future development of the wireless business, of course, the cost is naturally growing.


first of all, of course, labor costs. The establishment of mobile end division, the need to introduce new technical and operational personnel.


second, the growth of development costs. Mobile app's user experience is very important to build a user, experience better mobile products, the need for leading core technology.


Finally, the promotion cost is the biggest piece of expenditure. And a few years ago the beginning of the launch of different mobile terminals, no matter where to go, Ctrip, or the way cattle, the same way, Art Dragon, and its access to a mobile port users are increasing costs.


can say without objection, the major tourism O2O platform in the future who can dominate the wireless domain, who can dominate the entire market.


Conclusion: In general, seizing the market is the main reason leading to the collective losses of the four listed tourism companies. December 4, 2014, Ctrip CEO Liang Jianzhang disclosed in the new product launch, the future Ctrip will take out 1 billion yuan to continue to fight price war, the introduction of different grades and areas of 0 profit tourism products. The next day, where to go net CEO Zhungchengsu in the company's internal speech high-profile statement, the two armies meet, see gross income meaningless, to where the network has the advantages of technology and cost structure, not afraid to play price war, and can be protracted competition.


"Give up profits, embrace the market" has become the main theme of tourism O2O Platform Competition strategy, in the future they will continue to be in hotels, ticketing, car rental, leisure tourism and wireless in the five areas of the big war, and the gunpowder will be more strong.


Author: Liu Yan, founder of the state-purchase information, micro-credit public number: Bangkeji