Understanding the mystery of Ctrip's ticket revenue increase

February 14, the company released the fourth quarter of 2010 and the full year earnings. Ctrip ticket booking revenue in 2010 a big increase of 39%, I believe many observers have been surprised. According to China Civil Aviation Bureau data, the Chinese civil aviation market passenger flow rose 15.8% Year-on-year, Ctrip's growth rate is twice times more than the market average level.

For such a result, I personally find it unexpected to the observer, but it is understandable.

Before everyone will feel that Ctrip ticket booking business in 2010 especially sad. Online ticket Booking market in 2010 very lively, vertical search engine, Consumer-to-consumer website "Noisy" has been very happy, the outside world is widely believed that Ctrip has experienced an unprecedented fierce market competition. But cobwebs look at the facts, away from the hype of those concepts, I personally think that the decision of consumers to choose which service provider is nothing but two factors-price, service!

Let's talk about prices first. In China, whether it is such a professional tourism website, or the use of Taobao, NetEase and other platforms to sell tickets of the traditional agents, are through the system to obtain price information, distribution tickets, so no matter what service providers, Unless there is a small agent illegally embezzled the Enterprise customer's agreement price (this phenomenon appeared on a consumer-to-consumer website) and so on, otherwise the price is basically the same. Of course, some new players in order to attract the eye will have short-term benefit behavior, this is very normal, but not long-term sustainability. After all, ticket booking is not a windfall industry, we earn are all hard money, rely on a ticket to sell out.

Any discerning eye can see that, in the overall agreement of the ticket price, the guests will be given priority to choose the best service provider. As a representative of lean services, Ctrip is undoubtedly the leader. Ctrip sales of a ticket, will be subdivided into 20 processes, there are 61 evaluation criteria, Ctrip know that the whole process will have 211 errors may, so will arrange for special checks, so fine management is to ensure that the customer's feeling is the best. We believe that no Consumer-to-consumer website can do such a lean service.

I have mentioned before, China's online tourism enterprises can be divided into two categories, one is to provide direct services, such as Ctrip, such as the professional tourism booking website, and trained of traditional travel agencies, such as the Hong Kong tour. Their service quality is more secure, service means more comprehensive.

Another such as vertical search engines, Consumer-to-consumer website, and so on, just as a channel, media, the traditional medium and small agent fees, but and directly do not provide travel services, more play a role in a medium or platform, charge similar to "intermediary fees", "tolls" to help small and medium agents, and even the network of cattle sales hotels, tickets But for the service quality can not be guaranteed, not only service professionalism, stability is poor, but also often exposed fraud incidents, the media has repeatedly reported. Even if America's business culture and credit system is so developed, why does ebay not sell air tickets? Because the travel reservation service link multitudinous, the Post-sale service request is high, needs a strong integration service ability the Organization to realize. Just for the small and medium ticket agent to provide a platform, service system has not undergone substantial changes, is far from enough, its service experience can not be compared with professional travel booking site.

The funny thing is that someone still has 100% online reservations about it. Who do not know at this stage of China, tourism services pure online may be a flaw, only the line under the support of each other is kingly. Taobao, NetEase because of this flaw, cause they can't attract ticket booking the highest of course is also the most profitable guests-business guests, these guests often need telephone service emergency booking, return to sign, etc., simple online booking is unable to provide such personalized convenience services, so Taobao, NetEase can not eat " Cream of cake. " According to the statistics of Ctrip, 40% of the call occurred in the pre-sale, 30% after the sale, visible in addition to booking, the call center also has heavy information consulting, back to sign and other service functions, pure online booking agencies can not provide such a full flow of services, seriously affecting the customer's feelings. Overseas online travel websites also want huge and reliable call centers, just because the developed countries are too expensive to support, or simply outsource to India and the Philippines.

Of course, in other words, Ctrip should be self affirming, but should never be complacent. We welcome more enterprises to enter the field of online tourism, Ctrip is also a kind of supervision, prompting us to better improve services, the introduction of better products, and other enterprises to jointly promote the online tourism market benign and healthy development. After all, online tourism accounted for not more than 5% of the entire Chinese tourism market, as long as the focus on providing quality services to customers have a huge space.