What's the value of 15 billion yuan?

Summary: where the Nasdaq listing last November was a controversial company because it had not been profitable and had no hope of making profits in the short term, with a market capitalisation of as much as more than 15 billion trillion yuan, which was the market capitalisation of this year's big price adjustment.

Where the Nasdaq was listed last November was a controversial company because it had not been profitable and had no hope of making profits in the short term, but it was worth as much as more than 15 billion trillion yuan – the market capitalisation of the stock market after a sharp correction this year. Where to go is not an isolated case, a similar phenomenon is common in the Internet industry. For example, the recent listing of Jingdong Mall is also a loss-making company, in the short term there is no hope of profit, but in accordance with the first day of the closing price of the market value of $27.5 billion. Interestingly, the founders and CEOs of two companies emphasized that corporate profitability was unimportant. So why do investors still chase them? Below I will try to understand the investment logic of the internet industry by analyzing where to go.

"Money" in the online tourism industry

Let's take a look where the online travel industry is located.

China's tourism industry earned as much as 2.57 trillion in 2012, a 14.2% increase from 2011, according to China National Tourism Administration. China's tourism industry will earn up to 3.76 trillion by 2016, according to Iris. That means the compound growth rate for the industry in 2013-2016 will be 9.7%. Although Ctrip, where is the focus of media attention companies, but in fact, online tourism accounted for the tourism industry market share but 6.6% (2012). According to Iris Consulting estimates, the income of online tourism will reach 444 billion yuan in 2016, accounting for tourism industry's overall income ratio of 11.8%, 2013-2016 composite growth rate of 26.7%.

China's online travel market is also attractive compared to the US. In 2012, China's tourism industry accounted for about 5% of GDP, while the U.S. tourism industry accounted for 10% of GDP, twice times that of China. Meanwhile, the market share of AOL tourism has reached 40%. The World Tourism Organization's research shows that when per capita GDP reaches 3000 U.S. dollars, tourism demand will explode, and when the per capita GDP reaches 5000 dollars, the mature vacation tourism economy, leisure demand and consumption ability is increasing and will appear diversification trend. In 2012, China's GDP per capita was 6000 U.S. dollars and entered a period of diversified tourism development.

Priceline, America's top-rated online travel company, has a market capitalisation of $ more than 62 billion, and the second-ranked online travel company, TripAdvisor, has a market capitalisation of more than $13 billion. Clearly, China's huge and fast-growing online tourism industry offers enough room to imagine where to go. In fact, the online tourism industry has become a battleground, bat has been in a positive layout: Baidu 2011 will go to where to take under the company, Alibaba launched Taobao Tourism, Tencent has invested in Art Dragon Net, the same way network.