The traditional mode of online tourism is about to change

After the online travel industry giant Ctrip announced in July that will be invested in a year of 500 million U.S. dollars Low-cost promotional program, a time, several major OTA website price war.

Zijianzhe, analyst at the Analysys think-tank, believes that this round of price wars is the only way for the hotel reservation market to enter the development process of the online booking era.

The trend of price reduction originated from the competition of Art Dragon and Ctrip in hotel group buying business. At Ota's time the art dragon has been focusing on the development of the hotel business, hoping to become the first place in the hotel reservation market. and hotel group buying business is a very favorable point of the art Dragon, its hope through the way of small profits but quick turnover, quickly attract a large number of relatively sensitive low-end consumers, to enhance the overall hotel booking volume, to seize market share.

The high profit times of hotel bookings are over, Ctrip in 2011 Q1 net profit of up to 30%, and in the Q1 quarter of this year's net profit has fallen to 18.6%, with the investment of large marketing costs, Ctrip's net interest rate will be further reduced, other OTA manufacturers of the net profit level will be affected by varying degrees.

Although, Ctrip has previously publicly said that will not be too concerned about the hotel group buying market, but from the recent series of moves Ctrip, Ctrip in the use of more aggressive group buy preferential policies to counter the pursuit of Art dragon, and for the 3-star hotel and below the introduction of 30 yuan to 50 yuan for the rebate discount, the purpose is to rob Art dragon positioning of the consumer groups.

In addition to the first competition, the second line of the two giants with the network and Mango NET also do not want to be dumped, have joined the hotel price war.

Zijianzhe that the price-reduction trend is helping to develop the consumer's habit of online prepaid and online reviews, allowing OTA companies to gradually develop their online bookings and payments from the traditional model of call center and offline pay.

In the business travel market, there is another important reason for the OTA market to enter into the price war.

ZTE Telecom's ZTE Network Technology Co., Ltd. launched a business trip e-road pass. It is understood that there are Haier, Geely, BYD (002594, stock bar) and other dozens of large enterprise groups and ZTE Network letter cooperation, the purchase of business travel management and services they have become Ctrip "lost customers."

In addition to ZTE network of enterprises such as market food, there are more can not be ignored the forces: Mobile client applications, short-term rental, car rental enterprises. Mobile client applications are able to accurately and specifically grasp the needs of user mobile travel booking, short rental and car rental services are completely positioned in the emerging market segments to meet the user's personality needs.

Many experts believe that the price war will allow a group of small OTA manufacturers gradually out of the market. In addition, with hotels, air tickets and other online booking more favorable prices, as well as the use of mobile Terminal hotel reservations more convenient, similar to 12580, number hundred and other traditional call center OTA manufacturers Hotel reservation business will be seriously impacted.