Tour dealers price war Upgrade: "Profit" not to lose the array

Original title: Loss of "profit" not to transport the price of travel dealers and upgrade

Daily economic News (blog, Weibo) reporter Zhao Chunyan from Beijing

This is a relatively quiet price war, no electricity dealer price war noise, but has been fighting for several months. Compared to the price of electricity business, the price war of online tourism "is the real gold and silver investment."

According to foreign media sources, China's online tourism leading Ctrip travel network in Tuesday (September 11) said that at least this year, the company will adhere to the Low-cost promotional strategy, price war will continue, can foresee the company's next two quarters of the net profit will be significantly lower.

Mr., senior vice president of Ctrip, said the company was ready to continue the price war next year. At the same time, the company is also exploring international hotels and international air tickets and other business, hoping to become the company's future business growth.

Yesterday (September 12), the industry boss Ctrip said it will continue to increase investment in the price war, and said the September price battle will be more intense. Subsequently, the Art Dragon Net, the same way network and so on also expressed will continue to challenge the determination.

Ctrip price war

The price war on online tourism originated two years ago, the return of the hotel, "for a OTA (online travel service provider), do not have a problem for a month or two, but also understandable, but for years, this is tantamount to playing a price war." Mr. Yesterday in an interview with the Daily economic news reporter to analyze the origins of the Ota price war.

Team Consulting general manager Wei Changren told the "Daily Economic news" reporter, the price of online tour operators by the Art Dragon Net Group, and then Ctrip was forced to increase the investment, and then the price War Hotel group to expand the entire hotel field.

According to Analysys international data show, Art Dragon and Ctrip from the first quarter of the year's Hotel group purchase battle, to the two quarter launched a larger rebate discount activities, two OTA site launched the online tourism market "unprecedented" price war. Subsequently, followed by Ctrip and art Dragon Mango nets and the same way network also announced 80 million yuan and 90 million yuan to join the hotel price war, the price war to the climax.

Mr. Said, just started Ctrip did not go to the challenge, because the price war to carry said no profit can be earned, but, in the competitor to lower prices, Ctrip lost a part of the price-sensitive consumers.

It is reported that Ctrip in June this year officially launched a long period of low price promotional activities, and claimed that the event can have 500 million U.S. dollars in the budget authorization.

Mr. told reporters that no company is willing to play price war, but now the situation "had to play." "We didn't do it two years ago, but now we are really hurting, and some of the price-sensitive consumers here are going to compete with us," he said. ”

It is reported that Ctrip's promotional activities mainly include customer booking hotel and participate in the free will return cash or enjoy discounts. The move means that profits from Ctrip's main business are squeezed. In the second quarter of June alone, Ctrip's net profit fell 55% to 120 million yuan, and the operating profit rate fell to 17% from 32% in the same period last year.

What effect does this two-month-long price war have on Ctrip? Recently, Mr. Revealed: "The market response to price promotion, Ctrip has achieved the expected performance." Take the hotel as an example, in the low-end hotels, group purchase products grow rapidly, the hotel booking volume is expected to increase the overall year-on-year 20%~30%. ”

The Art dragon, the same Cheng and so on continue to challenge

Wei Changren told reporters that the price war for several years has been the industry's second art dragon Nets, won the momentum also won the market share.

For Ctrip price war, art Dragon Net also be outdone.

Yesterday, Art Dragon Net market personage in to "Daily economic news" reporter replies to the mail wrote: "Art Dragon never advocated the use of price war, especially against the goal of eliminating opponents for the purpose of price war, against the consumer service experience to damage the price war." ”

Like Ctrip, Yi Long Network for this price war performance is full of confidence: "Now is the best historical period of Art Dragon, our shareholders are willing to support us, Art Dragon hopes to become the largest online hotel booking service provider, for this strategic goal we are willing to invest, also not afraid of investment." ”

The same way to join the price war also in the "Daily economic news," the response to reporters that will be the start of their "comment back" to continue to carry out. "Our" comments back now has been issued a review of the cumulative bonus of more than 100 million yuan, will continue to implement, regardless of whether the opponents continue to price war. In addition, our "comment back" is not only a means of price concessions, but also a long-term strategy to cultivate the market. "The same way network related responsible person said.

Minor sites hurt

For the first half of the OTA site price war, Yi-Zhi Library has research shows that the price war in the promotion of users online booking ratio, consumers from other OTA website to Ctrip, Art Dragon, the same process, Mango four OTA site concentration.

It is reported that the mango net in the introduction of 80 million hotel carnival rebate activities, the highest date of the deal between the night more than 10,000. Ctrip in the two quarter, the volume of hotel bookings increased by 20%, Art Dragon in the first quarter and two quarters of the booking volume are maintained in more than 65% year-on-year growth, two quarterly bookings of up to 3.7 million nights, compared with the same period last year 1.5 million night.

Analysys International data show that the four OTA website promotional activities are obvious, consumers will gradually focus on four OTA sites, and cultivate the habit of online prepaid consumers. After the promotion activities, the online booking ratio of the Yi long net has risen from 63% in the four quarter to 72% in the two quarter of this year, while the proportion of the line and call center of the mango net also rose from 6:4 to 7:3. The same network in the book accounted for about 90%, and Ctrip due to the characteristics of the user base, call booking is still the main channel.

"So from this perspective, four websites are benefiting, and the real injury is those small and medium-sized businesses." "Analysys International analyst Zijianzhe Analysis said.

Wei Changren also said that the price war is the most injured small Ota website, because after the price war, the small Web site in the price war has no advantage. At present, the price war between online tour operators is not very influential to the large economy chain hotels, they have not put many hotels on OTA website, and Jinjiang Inn has announced the suspension of its hotel reservation. "Big business hotels may be affected a little bit because they have relatively few direct outlets." ”

When will the price war end?

Difference in the electric business by the Jingdong Mall initiative to provoke a price war, in the interview, Ota site are said to be competitors provoked, their own unwilling to play price war but can only helpless challenge.

"The price war is actually bad for me and my competitors because I could have made 20 bucks, but now I'm returning the 20 dollars to the consumer," Mr. Said in an interview with the Daily economic news reporter yesterday. Ota now the price war more is the real gold and silver war. From this point of view, for the enterprise is not cost-effective. ”

So, since the price war is not willing to fight, in the end when the price war is over?

Yi Long Network said that when the market appears a new balance of equilibrium, this time will naturally stop.

Mr. Said, this is not a two can say, "Our competitors are still playing, so we will play, then the competitor will also think, since the fight then why don't we fight it?" Now the situation is the question of who will stop first, but now it is very unrealistic to say which family will stop. ”

"Even if one of them stops, I may want to reduce the range of my price war, and then slowly balance, I think after such a struggle, both sides will have a rational process, but you have to say how long time, then I do not know, it depends on both sides of the game. ”

Analysys International analyst Zijianzhe predicts that after the price war, the service will be the key to differentiate the major sites, from the contract covering the hotel volume, the number of reserved rooms, the User Service experience and so on to launch new competition.