Talk about the "most fierce" price war in history.

This summer, the domestic tourism online tourism market "Smoke four", the major well-known, not well-known online tourism sites have introduced dazzling return, price reduction and other promotional tricks, by the industry as "the most fierce price war in history."

"If this is an area that has not been Chan, it is only through this" storm "of price war that the whole industry can return to the track of rationality and achieve the goal of chaos to Zhi. "Carrying Cheng has said.

But the industry's skepticism is also one after another: what is the price war how to play? Does Ctrip really have 500 million dollars of promotional money? Even if the full implementation of the price war, Ctrip will certainly be able to laugh to the end?

This round table, let's talk about the price war, which the industry is considered "the most fierce in history".

Status quo: Far-reaching price war

In July, Ctrip launched the first large-scale low price promotion since 12, with a total of $500 million trillion, for the sake of consolidating its market "boss" status. Soon thereafter, the art Dragon Net declared war on its official microblog. The slogan is this: "The Art Dragon Group purchase summer Storm!" Ctrip Buy No, we have, Ctrip buy some, we all hit 90 percent before minus 1 yuan! Since the price war has come, we will fight to the end! "A price war against Ctrip hotel group buying business.

Although Ctrip said that "price war" was not provoked by itself, but the high-profile move can be described as "far-reaching", soon Mango Network announced the investment of 80 million yuan cash subsidy, the same way net also Hao throw 90 million yuan "aggravating", to where the net announced investment of about 200 million yuan to create tourism intelligent service Platform, leisurely network also launched " Eight anniversary of the entire game let 80 million ".

For the reasons for the war, Art Dragon chief operating officer Shei Shen in the media interview has said that Ctrip's malicious promotional damage to the hotel's price system, resulting in a number of channels in the hotel to face customer complaints, return orders and other circumstances, contrary to the fundamental interests of the hotel.

and Ctrip Marketing senior Vice President Mr. also said to reporters, Ctrip only involved in price war, can promote the whole industry back to the rational track. "Price wars are not the only means of competition at the moment, but they are the most effective," he said. ”

Maybe a set of numbers can come up with a bit of a price war. According to the data provided by Iris Consulting, Ctrip's share of the online travel reservation market in China has fallen from 51.6% in 2010 to 41.1% in 2011, down 10.5%. In the past two years, Ctrip's share price has dropped to $15.37 trillion, down 70% from the 52.15 dollar peak in 2010. Many people speculate that Ctrip's price war is also a rush to consolidate their market position, and have to do the worst choice.

Consumer: The threshold of the hotel voucher

is the hotel promotion really affordable, or is it an eye-catching gimmick for a travel site?

Reporters in this survey, found that the major tourism networks have launched promotional initiatives. Ctrip's star hotel returned 100 yuan, Samsung hotel returned 50 Yuan, two stars returned 30 yuan, there are some Sunday Half-price hotel. Yi Long net return strength and Ctrip is comparable. Mango Network also launched the "Hotel Carnival", 800 hotels half-price concession, 8,000 hotels 0 profit and other activities.

"As long as you register as a member, you will be presented with 800 yuan coupons." "Ctrip, Art Dragon Web site have such a note." At present, the major tourism network to make every effort to "soliciting", consumers as long as the registration of members of the website, the basic will get consumer coupons.

However, when the reporters booked the hotels as consumers, they found that the use of these coupons also required a variety of thresholds. For example, you have a reservation on Ctrip 300 Yuan hotel, the site is 50 yuan, you have to book a hotel, tick the use of 50 Yuan coupons, if you careless did not tick, you can not get the money. Then, wait until you check out, not directly return, but need to comment on the internet, the 50 yuan as return to your cash account.

500 million dollars: Where does it come from? Where is it used?

In this price war, 500 million dollars (3.2 billion yuan) is a number of people's attention. Is it Cheng? Let's look behind the 500 million dollars.

"500 million yuan is an authorization limit, money has not actually produced." Unless I use it, my earnings will be reflected. Mr., vice president of Ctrip, said in a media interview.

So where does 500 million dollars come from? Ctrip said that this is the current cash flow derived. Up to the first quarter of 2012, the cash on the Ctrip account was about 800 million dollars. This June, Ctrip's board approved a 300 million dollar share buyback plan. That means there will be 500 million dollars left in cash reserves. Mr. Says future market input will be drawn from these cash reserves.

Prior to the industry speculation, Ctrip will be returned through the form of coupons to "exaggerate" the price of the war efforts. In response, Mr. Said, Ctrip's promotional "will be real gold and silver input." But he also pointed out that 500 million dollars is only a total authorized amount. "It can be used for half a year, or it can be one or two years."

is Ctrip's promotion possible to reach this figure? Some people in the industry have made rough calculations, according to the hotel's monthly booking of Ctrip forecasts, to the current amount of the calculation, plus promotional activities to bring the increase in bookings and air tickets, vacation travel and other participation in some activities. All this adds up, and a year's investment will be a huge figure. But whether it can really reach the huge number of $500 million trillion, I believe that when Ctrip's annual earnings report, will be more convincing.

Traditional travel agency: The return of free line products poses no threat to us

Since August, the hotel has spread to the tourist line. At present, Ctrip tourism products officially launched "review", visitors as long as the successful online booking of domestic free line, self-driving tour products, the end of the visit after the product published trip comments, comments on the success of the return of the cash reward by Ctrip.

The reporter in Ctrip see, August 22 from Hangzhou, Sanya 5th five-star free line of products, starting from about 3400 yuan, as long as four nights, the highest can be 100 yuan/night of the return amount, a total of 400 yuan.

Some people in the industry have raised questions about the source of the return. "On the basis of such a small profit in the tourism industry, we still have to come up with hundred dollars in cash, Ctrip is going to disturb the market price?" ”

Is this a shock to a traditional travel agency? The reporter interviewed the practitioners of the traditional travel agency.

"At present, for our travel agencies, 80% is a group line, free line accounted for only 20%." And only from the free line of view, get the hotel resources are exclusive, we are generally buy out the room for the whole year, from the price has an absolute advantage. Compared with the general online travel agencies, because the channels of access to resources are different, so the design of the product also has a great difference, there is no disruption in the market price of the argument. "Cyts in the province (600138, Skar, the head of the domestic ministry, said, from the current free line Ctrip returned products, the return of this part of the amount is only the hotel's commission, even if the return of 300~400 yuan, but also to the free line of Cyts products do not constitute a shock. "For today's consumers, not blindly to get the money to return to choose the free line products." ”

However, in the long run, such as offline travel agencies to develop online booking system, the competition is the same group of tourists, the competitiveness is inevitable.

Experts: To seek innovation is more vitality

"The price war behind is the domestic tourism market disperses, the network tendency." As far as I know, in Europe and the United States, the average 40~50% people are online booking travel, and in our country this ratio is only 5%. Ctrip's price promotion and business layout is aimed at not only 5% of the online tourism market, but also the remaining 95% of the major tourism market. "Professor Zhou Yongquang, associate dean of the University of tourism in Zhejiang, said

Professor Zhou told reporters that he had been Ctrip's first customers, with more than 10 years, has been its loyal customers, but these two years also found some of the drawbacks of the site.

"Ctrip has been slipping all the way in recent years, and other such as where to go online tourism industry can be crazy under its nose swallowed market share, it is exposed to the drawbacks of the Commission model, some hotels focus on the establishment of their own direct sales system, and no longer willing to cooperate with Ctrip, but choose to work with the emerging online Web site, Reduce the cost of the enterprise. ”

Professor Zhou believes that price war is an unwise way to compete in a business. "It attracts only a handful of price-sensitive customers who are unstable and where they are cheap to drill." And how to pass the later good product experience and quality customer service, attract and maintain a group of brand loyalty consumers is Ctrip really should consider things. If you just fight a price war, the result will surely outweigh the gains. ”

"Ctrip because of years of accumulation, the foundation is very thick, if pure competition blood, it is estimated that no online tourism enterprises can spell it." But if other companies adopt a more dynamic way to deal with, then Ctrip will empty their cavity blood. Professor Zhou believes that although the profit model based on commission is now still able to support a period of time, but if the neglect of the excavation of innovative products, then the future will inevitably face greater risk.

Of course, as the industry boss, Ctrip has begun to take a new move August 16, Ctrip and the global online hotel booking service provider booking carried out in-depth cooperation, through the form of resource substitution, Ctrip replacement booking in the world more than 235,000 joined the hotel services.

"As we all know, the current Ctrip in the world only to provide more than 50,000 hotel services, which for Ctrip to occupy market share, will bring what kind of competitiveness?" The reporter asked.

Professor Zhou said he believes such a combination is a significant boon for Ctrip in the price war. "Price war is a low competition, and such innovation is the real high competition, with the booking of the company, to strengthen the strength of Ctrip is a great advantage." ”

and the online tourism industry to get rid of low competition, give up the price war melee, to seek an innovative opportunity or help, is a trick to win. (Reporter Yang)