Online travel only Ctrip profit, crack industry loss curse

March 20, Ctrip released 2014 years of Four seasons and the full year earnings. According to earnings, Ctrip 2014 net profit of 240 million yuan, to break the online tourism industry loss of the magic curse, profitability and liquidity and loss of hundreds of millions of cry. According to the reporter understands, Ctrip's profit mainly comes from the operation number which is far above the market anticipation, in which the open platform strategy has driven each line of sales, but the mobile strategy also lets Ctrip travel application becomes the on-line tourism to become the most powerful application. Ctrip Chairman and CEO Liang Jianzhang said that the growth of the new business in 2015 will further promote market share, led Ctrip two of the full harvest of entrepreneurship.

>> Release

Online travel only Ctrip profit

Last week, Ctrip announced the year 2014 and four quarterly results, Ctrip has become a number of online tourism site only the annual profit of listed companies, and continue to maintain the "all of my own profit" situation. Reporter analysis of the company 2014 report found that only ctrip to maintain profitability, net profit of 240 million yuan; the rest of the online travel companies fell into a loss, where to lose 1.85 billion yuan a year, the loss of 886% Year-on-year, the losses of the annual loss of 269 million yuan, the loss of 60% increase year-on-year , the annual loss of 449 million yuan, the loss of 432% year-on-year increase. Insiders said that Ctrip has decisively accelerated the investment of 15 small businesses, for the long-term development of the opportunity, but also further built a competitive barrier. And in the face of the company to burn money, Ctrip without hesitation, step-by-step press, firm expansion of market share, so that all the online companies, but to ensure their own profits, all this proves that Ctrip's high-quality and Ctrip business model of profitability, through the past 15 years of meticulous focus on management to create, it is difficult to be simple replication. In addition, in the same trade losses amplified into a loss of blood in the time, Ctrip's profit for the whole year is not only a show, but also on behalf of Ctrip more capital in the next competition to grasp the initiative to maintain the leading situation.

>> Digital

Net operating income the first 1 billion dollar club

According to earnings, Ctrip's full-year earnings come from operating figures that are much higher than the market expects. Ctrip Annual net operating income of 7.3 billion yuan, converted close to 1.2 billion U.S. dollars, China's first online Tourism commission income beyond 1 billion U.S. dollars listed companies.

In comparison, the annual revenue for the Arts dragon 1.16 billion yuan, where to go to the annual revenue of 1.76 billion yuan, even if the entire art dragon plus the whole where to go, and Ctrip compared to a business unit (large accommodation for the annual revenue of 3.2 billion yuan, major traffic revenue of 3 billion yuan), still somewhat inferior.

Industry insiders said that through the open platform strategy, Ctrip in the field of wine rich product line, enhance price competitiveness, focus on technological innovation, improve service quality and efficiency. Thanks to the relevant layout, Ctrip large accommodation and transport business in the existing large scale, the whole year still maintain 63% and 90% of the year-on-year growth, particularly commendable, further open the gap in market share, so that competitors are difficult to catch up.

>> Highlights

Strong growth in mobile turnover

The strong growth of net operating income is the result of the "thumb + cement" mobile strategy. Ctrip related responsible to tell reporters, the use of Ctrip rich products, perfect background service, as well as advanced technology systems, Ctrip mobile phone platform can fully provide the most comprehensive seamless one-stop service, driving the mobile platform indicators of the bright eye performance. As of the end of the four quarter of 2014, Ctrip Travel wireless applications already have about 600 million cumulative download volume, the chain growth of 70%. During the Spring Festival in February 2015, mobile platform transactions accounted for more than 70%, becoming the most powerful application of online tourism liquidity.

>> forecast

First quarter net revenue annual growth rate will reach 40%~50%

Liang Jianzhang is very satisfied with the achievements of Ctrip's business units in 2014. In the face of 2015, Liang Jianzhang showed a high level of optimism that the annual growth rate of net revenue in the first quarter would exceed the past few years, with some 40%~50% strong growth. He also pointed out that Ctrip has spent a huge sum of money to enhance the price competitiveness, product development team Combat effectiveness, quality service capacity and efficiency, 2015 will be an inspiring year, the growth of new business will promote market share further promotion.

Looking to 2020, the value of the tourism platform will be with the tourism industry's future echoes, Ctrip two times to create brilliant, become the world's largest and most valuable e-commerce companies.

Jinghua Times reporter Tian Hu jinghua Times Cartographic Shup