The aftermath of the price war has been reflected in the line tour operators

Absrtact: The aftermath of price wars has been reflected in the line tour operators. According to Ctrip and Art Dragon recently released three quarterly earnings, Ctrip profit slipped 40%, while the Art Dragon is losing more than 30 million yuan. Yesterday, Ctrip Vice President Mr. Accepted the first financial

The aftermath of the price war has been reflected in the line tour operators. According to Ctrip and Art Dragon recently released three quarterly earnings, Ctrip profit slipped 40%, while the Art Dragon is losing more than 30 million yuan.

Yesterday, Ctrip Vice President Mr. Accepted the "first financial daily" interview revealed that this has lasted three months when the price war to stop, to see Art Dragon, once the art dragon suspended price war, Ctrip will immediately stop.

Although three quarterly earnings reported 40% of the decline in profits, but Mr. said that Ctrip is still profitable, for the decline in profits, the company has been expected, and Ctrip for the price war to pull up the hotel booking volume is very satisfied.

But in the opinion of many experts, this loss of profits of the price war can not be fought forever.

"Initially some small and medium sized online tour operators began to play a price war, and then most of the online travel industry was forced to join because of fear of loss of customers, after 3 months of price after the war, some small and medium-sized online tour operators have been unable to support, after all, this requires huge financial support." Three-quarter earnings showed that the Arts dragon appeared in a loss of more than 30 million yuan. Mr. Said, for the accompanying, will never lose money to do promotions, despite three-quarter profit decline, but Ctrip is still in a profitable state. Rough estimate, Ctrip marketing funds should be able to support the next 1-2 years price war needs.

From June to August this year, Ctrip's price war consumes nearly 300 million yuan in marketing costs.

"We will of course also consider the impact of price war on profits, so we are also looking at the market, if the art Dragon Stop the price war, then we also immediately stop, of course, if the art dragon continue to play low price war, then we will continue." Mr. Said, in fact, many small and medium-sized online tour operators have been difficult to support the price war, so if the future Ctrip and art Dragon at the same time stop the price war, I believe that other small and medium traders will also stop.

In the interview, the reporter learned that the price war not only makes the various online tour operators lose profits or even loss, some hotel operators are also quite depressed. At first, Ctrip, Art Dragon and so on "return" to the consumer's way to pull down hotel prices, and "return" funds by the online tour operators pay, do not need to bear the cost of the hotel, however, after a period of promotion, consumers have formed a "not to do not subscribe to" the habit, and even consumers complained that the hotel direct prices far higher than the price of online tour operators, This affects the operation of the chain hotel's direct selling system, also let the hotel side worry about the future difficult to use normal prices to sell rooms, so at present, Jinjiang star, such as home, Han Court and 7 days, such as a strong direct sales capacity of the economic hotel companies have been suspended with online tour operators "return" promotional cooperation, I hope that room prices to return to normal levels