Where is the tipping point? NET will increase OTA supplier click Fee greatly

Including the Art Dragon Travel Network, the same way network, mango nets and live where the network and other OTA suppliers in the Qingming peak travel before the same time suspended the cooperation with the network, the collective "next" hotel products. The tipping point is where to go. The net will increase OTA supplier click Fee greatly. Art Dragon and the same way network, said to reporters, is currently with the network to negotiate, do not rule out future cooperation may continue.

From the beginning of the April incident, the attitude of all sides is not very clear. And April 10, Art Dragon Net CEO Cui and go where net CEO Zhungchengsu suddenly in micro-blog chanting words, all parties insist that the negotiations or will continue to deadlock.

To where? The net replied that "At present only in the hotel channel in the hotel search products in the CPC cooperation model, and individual suppliers in the cooperation between the differences, but does not affect other partners, nor does it affect and these vendors in other areas of cooperation, for example, the same network in the Air ticket field, The Art dragon in the hotel buys aspect also with goes to where the net maintains the good cooperation. Where are we going? The network business has not been affected, nevertheless, but we hope to remove the differences as soon as possible and resume full cooperation. ”

The overt behind the price increase

Where to be blocked by the group, the price increase is only the tipping point, more importantly, it is intended to promote the TTS (to talsolution) online trading system. This makes the big Ota feel very hurt.

"To where the net before and we have not discussed, suddenly gave notice, said to increase prices (click Fee), attitude can only be tough to express." "said one OTA vendor executive involved in the incident. The executives said that where to go to the network to OTA out a choice problem, or continue the original page jump Mode (CPC), but according to the different price range of hotels, click Fees up 20% to 80% respectively, or join its introduction of the hotel's TTS, a slightly lower price increase.

Yi Long an executive said, according to the hotel's gross margin, to where the network will monitor the number of OTA clicks, after the calculation of Art Dragon's click Fee increased by 50% on average. "We were informed at the end of March, we can only go offline and wait for negotiations." ”

But where to go means that the statement is wrong: "This price adjustment involves two forms of cooperation in pricing: TTS mode and CPC jump mode, the current divergence is mainly in the CPC jump mode price setting." As the conversion rate of TTS system continued to increase in the previous six months, for TTS customers, the cost structure impact is less than 10%, for CPC jump customers, and TTS conversion rate gap is increasingly obvious, the impact on the cost structure is greater, this is the key point to trigger differences, about price adjustment, individual media said the increase of 40% is not true, it is not so high. ”

Cui the TTS model where he refused to go. "The art dragon does not support where the TTS model goes, and OTA in other countries does not support the vertical search TTS model," it said on Weibo. We do not believe in this model, where the long-term benefits will be guaranteed to the maximum. ”

Cui attitude or also most of the next product OTA attitude. In the eyes of the above executives, where to go now the biggest advantage of the network or its Baidu flow of support, Baidu traffic advantage makes many OTA even if not happy may finally succumb to this monopolistic advantage.

"It's not fair to be an umpire and an athlete," he said. Said the art Dragon executives.

Where to go before the model is as a vertical search engine platform, the consumer where to go online information to jump to the corresponding OTA official website, its own only as a search engine to crawl hotel information, but will not participate in the transaction.

And now the promotion of hotel TTS system, it will break this mode. To join this platform OTA, after the consumer clicks on the reservation will not jump to the OTA official page, but where to go directly to the site to complete the transaction process, and transaction costs and customer information is also by where to provide OTA. This approach, in addition to their own technology immature small and medium-sized suppliers can accept, to the arts and mango and other already very mature Ota, is tantamount to their own customer data to share to go to where, and also for the click Fee Repeat pay, which led to large Ota fled.

Seeking OTA or for IPO

"User resource data is the core interest of OTA. Where to go this practice makes us feel that we have ulterior motives. "The executives said," Where to call yourself a vertical search engine, we allow you to crawl hotel data, but once you add TTS system, and where you are doing the same thing with Ota, there are direct distribution, and promotional activities, this is not fair for OTA. ”

In fact, where to seek OTA transformation or from its actions can also spy one or two. Cool News In the interview with the reporter said, cool news to do pure media, the same is the price platform, currently only 200 people around the team; where to go net before Baidu was acquired more than 600 people, but at present only the hotel has more than 400 people, the total number of more than 1500 people. "This heavy asset is just OTA mode. "Cool News thinks.

Where to go now network the industry "spoiler" can not be underestimated. According to January 2013 Iris monitoring data, in the travel site monthly visits statistics, to where the net to 74.74 million people top. By the end of December 2012, where to go the network can be real-time search of more than 800 travel provider sites, search coverage of more than 235,700 hotels worldwide.

Where to go the net means no OTA. "Where to go the net is an integrated vertical search engine that has many forms of direct selling and distribution. To buy as an example, to where the net in no OTA approved group buying mode, and the hotel direct cooperation, when OTA began to recognize this mode, the active access to OTA group purchase products, we adhere to the platform road. ”

But where to go there was an early intention in the hotel. As early as July 2011 Baidu 306 million U.S. dollars to invest in where there is said, go where the network will continue to open up the Chinese online tourism market goals, to increase hotel and hotel group purchase and reshape the hotel online marketing pattern of investment. A travel industry personage said to the Reporter: "Where to go must be under the pressure of the listing to seek OTA, but the timing is not good." The OTA price war has not stopped, and the already pressured suppliers face double charges and worry about who their core resources are cheap. ”