The Art dragon sits Dead "thousand years Second" rank

Source: Internet
Author: User
Keywords Art Dragon recent live thousand years dick
Tags .net air tickets art dragon art dragons booking booking tickets business business travel

Absrtact: Recently, the major OTA has released its own 2014 years of Q2 earnings, compared to OTA industry ranked the top two Ctrip art dragon, Art Dragon seems to sit dead the thousand years of the rank of the second. Performance is: 1, market share far behind the industry boss Ctrip 2014 2nd quarter Online travel

Recently, the major OTA has released its own 2014 years of Q2 earnings, compared to OTA industry ranked the top two Ctrip art dragon, Art Dragon seems to sit dead "thousand years Dick" ranking. Performance is:

1, market share far behind the industry boss Ctrip

In the 2nd quarter of 2014, online tourism OTA market structure is more stable, Ctrip 48.9% of the market share ranked first, art Dragon to 9.7% of the market is ranked second. Ctrip is 5 times times more than the art dragon, even the third Chengye and the art Dragon market accounted for the same. It is worth noting that where to go is not counted in Ota, if the platform to where also counted into OTA, that the art dragon accounted for smaller.

2, Ctrip and art dragon revenue accounted for is still maintained at 6 times times, and no change;

Starting from the first half of 2010, Ctrip and art-Dragon's revenue accounted for more than 6:1, only 2012 years in the first quarter of the lower, but in the second half of 2012 Ctrip follow-up Art Dragon after the war, the gap in revenue again opened.

3, Yi Long after 2012 years of loss again

To the second half of 2012 Ctrip fully began to follow the Arts Dragon Hotel prices after the war, Art Dragon in the mire of losses, and there is a gradual expansion of the trend, and the first half of 2012 the reason for a slight profit from the same process to break the 30 million additional revenue.

Art Dragon CEO Cui 2007 after joining the Art Dragon, through the reform and business focus indeed for the Arts dragon has brought gratifying progress, let Cui proud of is:

1, will be the art dragon from the continuous loss to return to the status of profitability;

2, Art Dragon market value from Ctrip 1/14 to 1/5.

In contrast to recent earnings and market capitalisation, we found that:

1, the Arts Dragon after 2012 years again into a loss, despite the 2014 Q2 quarterly profit of 31.5 million, but the profit from the same process of the 30 million and sales and marketing expenditure reduction;

2, the market value of the art Dragon is still back to Ctrip 1/14 and has been maintained in this interval.

Art Dragon CEO Cui clearly understand that only the first place in the industry to obtain profits, the second will always be difficult to survive. And as a natural catch-up, change the art dragon "thousand years Second" this fate of the way only "speed forward", "bite first", "in the first mistake when seize the opportunity to overtake". Cui for the arts to bring a phased performance improvement, 2009, the success of the Arts Dragon, to obtain a net profit of 19.9 million yuan, became the art dragon set up a decade of the first year of profit. Then in 2010, the art Dragon again made net profit of RMB 20.6 million yuan. At the same time, in order to plough the field of hotel reservations, Cui Sword walk slant, on March 21, 2011, officially launched hotel group buying business. Hotel group Buy again for the Arts Dragon brought about a substantial increase in performance, 2011 net profit for the year 39.3 million yuan, and sales growth for the first time beyond the "industry leader" Ctrip. But Ctrip in 2012 to follow the price war, new group buy hotel business and some other reforms, the art dragon seems to return to far from the eldest brother Ctrip left behind the day, this is what the reason for it? Why did the art dragon make a thousand-year penis?

1, art dragon market share increased low midrange hotels, not occupy high-end hotels

At present, Ctrip Hotel covers a few 54,000 nights, art Dragon 43,000 night, with more than 11,000 turndown Yi Dragon. But this more than 10,000 of the basic is Ctrip's family hotels, inns and other scheduled business of the Pine Cone Network inventory, the current effect is not significant; So after deducting this part of the coverage, Ctrip's hotel coverage number is similar. Cui after taking office to focus on online hotel reservations, and from Ctrip is not so attached to the low-end hotel to start, at the same time open inventory combined with all the joint third party to increase the volume. Therefore, the order of the art dragon mainly from the low-end hotels and more remote group buying hotels, and Ctrip early is through business travel customers start, so in the high-end hotel has an absolute advantage, a certain proportion of predetermined volume from high-end hotels; This is why the Yi Long book volume accounted for more than 60% of Ctrip, but the proportion of revenue is only 40% of the reason.

Now in the low-end, economical hotel areas more advantages than Ctrip, especially in group buying has been steadily far more than Ctrip, but in the high-end hotels, Ctrip's position is unbreakable.

Of course, both sides are trying to get into the other side of the field, the price war is actually ctrip to the low-end leisure infiltration of one of the measures, it should be said that the effect is good. And the art dragon also thought of various ways to try to grab the share of the high-end hotel, but the effect is not very obvious; so Cui has been in the propaganda said Ctrip Monopoly hotel. Art Dragon and Ctrip in all other aspects of the contest can be better, but only in the high-end hotel progress relatively weak.

2. New competitors to the Bureau but did not arouse the attention of the Arts Dragon

Kevin Kelly says there are usually some subversive companies popping up from outside the industry, and Ma also says that you're not the only one that you see around you, it's not something you should be particularly worried about. For example, IBM has always been a computer, in the host industry no one can defeat IBM, the final defeat of IBM is Microsoft. No one in the software industry defeated Microsoft, the result is Google defeated Microsoft, Google is doing search, Google was finally defeated by Facebook, Facebook is a social networking site.

2005 set up to go where to follow the Kayaka mode into the ota,2014 hotel overnight sold 7.3 million nights, is about to catch up with art dragon 8.3 million night; Group purchase site The United States group sold in 2013 Hotel orders for 26.87 million nights, has occupied 75% of the market share of hotel Group, Squeeze Art Dragon Hotel Group buy share shrank to 5%, and the United States Group has been its largest business unit, is increasing the investment in the hotel category. At the same time, Taobao, the public comments and a large number of entrepreneurs into the online tourism industry, more and more foreign OTA also have Nuggets China market, competition is increasingly fierce, has eroded the art dragon and Ctrip's share. Therefore, the Art dragon now has a tiger in front of the wolf, the middle of the big wild boar.

3. Focusing on hotels alone may cut user demand

Cui follow the operational principles of Clausewitz ("the author of War"), through decision-making on the decentralization of management, positioning on the return to the second position, the strategy to do subtraction focus on hotel business, regional focus on the two or three line market, the operation of small hotels, marketing on the flank war attack online booking business, Successful implementation from the millennium second to the hotel business leader of the perfect breakthrough.

But for most business travellers and travel customers, air tickets and the hotel's needs are almost simultaneously produced and small degree of separation, while the existence is due to the business of the machine wine demand is linked together, booking tickets will almost always book the hotel, split is said business travel users are basically booking tickets, and then determine the hotel settled. But despite the fragmentation, most users are still used to buying products on the same website, and different websites can create more costs. Ctrip in 2009 to launch the Machine + wine products is such a consideration. "One-stop is definitely a right strategy," Cui said.

In spite of foreign Priceline successively purchase active Hotels with 161 million US dollars separately, bought bookings BV with 133 million US dollars, the active Hotels and bookings B.V are further integrated into booking. After the acquisition of Agoda. It is these acquisitions of booking and Agoda that have become the main drivers of today's Priceline performance. Priceline, with its hotel business overtaking Expedia, has successfully become the world's largest OTA, with a market capitalisation of $65.2 billion trillion. Booking's booking volume accounts for more than 70% of the total bookings of Priceline hotels.

But Priceline's booking and Agoda are not simply successful at focusing on hotels, but have deep consumer habits long ago. Booking the Americas and Europe, has more than 262,558 hotels, in 178 countries around the world, and provides 43 languages services. Prior to this, users through the booking in Europe and the Americas travel can only enjoy one-way concessions, and now the Princeline group to achieve the European and American Hotel resources to share, so that users through the booking will enjoy double concessions. Today, has become the largest online hotel reservation company in the world, the largest and fastest-growing on-line hotel reservation service provider in Europe. Agoda is linking Asia to the Americas and Europe, reducing the cost of travel through globalisation.

and the main business in the domestic art dragon is completely not equipped with replication booking and Agoda's successful model of the background and strength.

4, the price war has not become the best weapon of Art dragon

The price war did hit Ctrip's biggest weakness. Ctrip is OTA, the impact of profit mainly has two factors: price and number of users. Ctrip platform sales of products and prices from suppliers to provide the difference between the greater, Ctrip's profit is higher; in the case of a constant commission, the greater the number of users, Ctrip's total commission income and advertising revenue will be higher. And price war can affect the two profit factors Ctrip, price reduction will not only lead to Ctrip price-sensitive customers to other platforms, resulting in a reduction in the number of users, at the same time Ctrip follow the price war will lead to their own price difference, two factors are reduced, it is inevitable to bring the decline of Ctrip. In a sense, art dragon price war may be the best way, not only can plunder market share, but also can drag the eldest brother.

But the price war wounded the enemy 1000, since the loss of 800. The price war hurt the art Dragon all Hotel business (occupy income 80%), and the competitor Ctrip Hotel business only accounted for 45%, in Ctrip did not follow the price in wartime, the result is quite large, and Ctrip 2012 after the Arts dragon quickly from the surplus to lose, and the results are very little. In the current price war environment, booking a 1000-yuan hotel return to 100 yuan can also have a profit of 50 yuan, but a hotel 200-300 yuan to return a 20-50 yuan on the basic no profit; But the art dragon, which is mainly reserved for low-end hotels, has been wandering on the edge of loss. Future art dragons need to get a bigger market in high-end hotels to get better profits.

Cui Choice Hotel Category One reason is that the more dispersed upstream suppliers, that the more likely to bigger, upstream if the monopoly, then controlled. From 2007 to 2014 China Hotel added N, upstream hotel suppliers are more willing to work with large companies, and the platform and OTA to where the rise, netting more hotels.

5. The new business outside the machine wine is booming, while the art dragon focused on the hotel business has missed

With the steady growth of China's economic development, the devaluation of the renminbi to reduce outbound tourism costs, more than 40 countries to the Chinese tourists trial visa-free or landing sign, tourism, especially long-distance travel has become a new trend of online tourism, the 2014 Q2 tourism vacation accounted for 13.3%, after the ticket, hotel.

Scenic ticket business compared to other tourism business, the profit is thin, but the scenic spot ticket business is regarded as the entrance of leisure tourism, through the scenic tickets to open up including air tickets, hotels, the entire leisure tourism market. Since 2014, the industry has become increasingly competitive, the same process, Ctrip, donkey mother and other enterprises have to force the scenic tickets, staged several rounds of price war, continued to launch 1 yuan tickets and other activities to attract users, especially Ctrip and the marriage of the same process in the field of the ticket to occupy the largest share. In 2013, the total revenue of the annual scenic Area tickets was between 130 billion and 140 billion yuan, but the online booking ratio accounted for only about 2%. Compared to air tickets, hotels, tickets market "promising".

6. No good use of mobile Internet, mobile internet layout is still far behind where to go Ctrip

According to the third party Mabhida consultation data, as of the 2nd quarter of 2014, the number of travel downloads for 129 million times, ranked first in the market, Ctrip travel to 109 million downloads in the second, both downloads are 5 times times more than the art dragon.

In the wireless end of the order ratio, Art Dragon Hotel Wireless end accounted for 45%, and according to Ctrip internal staff introduced Ctrip wireless side of the hotel accounted for more than 55%, while the entire wireless end of the order accounted for more than the whole company's 35%, At the same time, Ctrip from 2013 onwards in the external promotion and internal organizational adjustment to maximize the wireless side of the propaganda, the industry leader of the transition MTA's determination and results can be seen.

7. Not getting the attention and favor of the strategic investor Tencent

2011 Tencent invested 84.4 million dollars in its strategic investment in art dragons, and won the Art Dragon 16% of the equity, but with the share of the public comments and Jingdong is not the art dragon has not been the core assets of Tencent Micro-letter import resources, and even import resources have not been acquired, not to mention the same as Sogou to get the resources of Tencent itself! And this undoubtedly lets the person for the Art Dragon Khanyi, is tecent does not care the OTA market? Or Tencent may have given up the art Dragon? I'm afraid it's not the former. Because: 1, invest in Art Dragon after Tencent once again invested in the Traveller network and this year's listing of the same process network, it can be seen that Tencent's OTA ambition has not died; 2, Tencent QQ Tourism is still in operation, and operation is good; 3, this year the industry has been rumored that Tencent is interested in capital plus Art Dragon shares of the way to buy Ctrip, although not confirmed, According to industry sources, the message is not unfounded, the main reason for the news is not realized by Ctrip CEO Liang Jianzhang platform Dream and Tencent valuation gap between, while Expedia and Priceline also has been in the Chinese online travel industry has a big attempt, the latter this year investment Ctrip 500 million dollars.

8, Art Dragon in the new marketing form of omission

Despite the art Dragon's claim to be the first to pay for the OTA, but it is very regrettable is rarely seen to promote and use of the function, and even so far the official website and the APP have no micro-letter payment method, and then pay the letter of Ctrip and the same process will be micro-letter payment promotion to the extreme, official website, APP, H5 is full of micro-letter payments, and this virtually from the micro-letter to obtain more replacement resources and cost subsidies, and micro-letter payment has now become the second largest Third-party payment platform after Alipay. Ota's donkey mother is a alternative, to create and Baidu payment cooperation precedent.

Micro-credit payment is just a microcosm of a new marketing, and other marketing of the art Dragon is still a little.

9, art Dragon lacks a strong PR team

The importance of PR team is beyond doubt, PR team for Taobao in the PK ebay and Jingdong in the process of the establishment of the immortal exploits, and Ma Yun itself is a PR Montana, OTA industry Ctrip and the same PR team we do not have to repeat, and the art of the public relations team of the Arts Dragon in the abyss of misery, Including the continued loss of the Arts dragon, including the art of the acquisition of the grapevine rumors, including Expedia and Ctrip disappointed with the art dragon, the negative news is often abandoned, and the public relations team to recruit, as a continuous loss of the industry second art dragon itself has been bad, and the public relations team in the enterprise's negative news has not been guided, in the positive news has not been disseminated, marketing Cui didn't realize the value of PR?

Although the Art dragon in 2014 Q2 again to achieve profitability, but due to the same process and reduce sales and marketing expenditure to achieve, profitability can continue? Or is it possible to achieve 2014 Full-year profit? I'm afraid it's an unknown number, just like the Art Dragon CEO Cui said at the earnings meeting: "This quarterly profit does not guarantee continued profitability." In the author's opinion, I am afraid that this stage of profitability and the Sishiya of McDonald's, the CEO of the Art Dragon in 2006 to achieve the 2, 3 quarter record net profit is the same, is to provide investors with better earnings, otherwise Expedia may not see the development and profitability of the premise, To complete the change of the Art Dragon Management.

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