Wu Zhixiang, CEO of the same journey, said the future will be "1 yuan tickets" normalization

Absrtact: Yesterday, the same travel (hereinafter referred to as the same process) in Beijing held a conference, announced the 5 billion yuan to send out 100 million tickets, opened the Chinese attractions 1 yuan era. Wu Zhixiang, CEO of the same journey, said that the future will be 1 Yuan ticket normalization. Before and after this year's Spring festival, Ctrip and

Yesterday, the same journey (hereinafter referred to as the same) in Beijing held a conference, announced the 5 billion yuan to send out 100 million tickets, opened the Chinese attractions 1 yuan era. Wu Zhixiang, CEO of the same journey, said the future will be "1 yuan tickets" normalization.

This year before and after the Spring Festival, Ctrip and the same process set off a round of scenic ticket price war. With Ctrip April 200 million U.S. dollars in the same process, the industry thought the two sides will be a truce, the market will enter a smooth period. But the same way network launched the "1 yuan tickets" will undoubtedly rekindle the price of war. The first half of this year, big to Ctrip, small to mother donkey all follow up 1 Yuan tickets.

From just released in the second quarter of 2014 earnings, the online tourism market officially entered the "Time for space" of the tough stage. Industry leader Ctrip when Ti Ying Rose 38% year-on-year, but the net profit attributable to shareholders slipped 36%; where is the net income growth of 127.3%, attributable to shareholders of the net profit loss of 420 million yuan; The newly listed cattle net income rose 84.9%, net profit loss of 129 million yuan. In the earnings, the company's explanations for losses and profit declines have been a significant increase in marketing and channel costs.

The same process, although not listed, no detailed financial data can be found, but Wu Zhixiang said the next process will still be strategic losses until the mobile end of the business to become the boss of the industry.

The online travel market seems to be taking the road of "electric business War". A notable feature is the huge amount of money-burning marketing that robs users. Only last year, Wu Zhixiang said, the amount of online travel returned to users (a way of marketing) over 2 billion yuan. and a person close to Ctrip revealed to the 21st century Economic report that Ctrip had enough "ammunition" to launch a price war in the fourth quarter.

Another feature of the online travel market is the more intensive capital operations. Ctrip nearly four months to share the same process, the way cattle, Huayuan Country Brigade, at the same time accepted the PRICELINE5 billion dollar investment. In addition, Tencent investment in the same process, Ali shares Bai Cheng Net.

Electric business industry after several years of fierce competition, "the World" first set. So how will the final pattern of online travel market be determined?

The War of burning money

The 2013 China Online Tourism Market research Report, published by the Tourism market research consultancy, showed that the total turnover of China's tourism market in 2013 was about 2.9475 trillion yuan, of which the online travel market traded at about 252.2 billion yuan, with a penetration rate of only 8.6%.

The huge market space is one of the important reasons for all the big giants to enter the bureau, which is similar to the electric business industry before and after 2010.

From the industry pattern, at that time, the electric business industry, Ali a single big, Beijing-east is rising, Tencent, the only product will, poly-United States and other products have joined the war, vertical electric quotient more countless. The current online tourism market, the same emergence of Ctrip lead a step, to where, the same way, cattle and other menacing, and poor tour, Mother Donkey, Hornet's nest, etc. also began to increase the intensity of promotion.

From the result of competition, the electric business enterprise or by mode (such as the only goods will flash purchase, Jingdong's self), or by the subdivision of the field (such as focusing on skin care products, poly-beauty products), or by scale and services (such as Jingdong Logistics) in the market occupy a place.

But in the years of the electricity business, capital is the biggest driving force. According to public data, Beijing East before the listing of 5 rounds of financing nearly 3 billion U.S. dollars, other electric operators also experienced excessive rounds of financing. And this part of the fund most of the investment to promote marketing, attract users and build distribution logistics system.

Online tourism market has also been through the way in the air tickets, hotels and other business marketing investment, with Tencent, Baidu and Ali into the Bureau, marketing war quickly upgraded.

This year, the original insisted that the first profit with is Tencent, Ctrip nearly 2 billion yuan after the investment, began to vigorously promote its pioneering 1 yuan tickets. According to Wu Zhixiang, as of now, only this activity, 5 months has invested 500 million yuan. This is equivalent to "burn" 100 million yuan per month, thus starting to enter the strategic loss track. And this time through the China Merchants Bank credit 5 billion yuan, continue to invest 1 yuan tickets, but also in the "10 Yuan Hotel" and other aspects began to invest.

From Ctrip, passers-by and where to see the second quarterly, its sales, marketing and research and development costs, and other aspects of the year-on-year growth obviously exceeded the revenue growth, in the long run, the demand for funds is self-evident.

In addition, the online tourism market competition in the development of mobile internet mature period, the major online travel companies in contention for PC users, but also in the user's mobile phone screen. The companies that were previously interviewed by the 21st century Economic report said they would aggregate the company's resources to drive the development of the mobile side.

An online travel company executive told the 21st Century Economic report that online travel companies now get a user on the Internet at an average price of about 50 yuan, and if it starts at 0, it will take at least 10 billion of the input, so there is no capital involved, and the game ends up like a group purchase.