Accelerate the transformation of integrated tourism
content service providers. Record from the time the four gentlemen Ctrip has 11 years together, no matter how many rivers and lakes swords, Ctrip is the Ctrip.
e-commerce in tourism in this area, Ctrip continues to maintain a strong position. As of September 30, 2010, Ctrip Q3 net operating income of 121 million, up 49%; net income of $ 48,000,000, an increase of 70%.
Although Ctrip's dominance in the Internet industry is still strong, but long-term development, it still lurks Ctrip three major challenges: first, the airline industry chain, the hotel is on cultivating their own direct marketing channels to get rid of many agents, including Ctrip, including excessive dependence; the other to The third proposed a world-class travel services to corporate objectives, which Ctrip will be how to upgrade its famous
foreign Johnson Zaibao stop large-scale recalls the warm state forest behind the taking of 23 million subsidy allegedly left Enron: This is really clever
Bank CEO Min Fan to accept the began to seek
growth engine is not misfiring
Min Fan, but now must face: one is from the airlines to reduce agency costs and increase the proportion of the practice of direct sales, or affect the core interests of Ctrip; the other hand, the hotel industry is actively cultivate their own VIP membership, or lower Ctrip sub-sales.
Airlines to reduce agency commission, Min Fan favorable opinion of Ctrip good. He said: The survival of the fittest.
Min Fan further explained that: to bear its own not less than 3% or more of the management and marketing costs, so the key is to do revenue management airline, not deliberately pursue direct sales. and airline distribution exceeds the amount of direct comparison, the hotel just the opposite, Ctrip's business is now a strong complement the hotel direct. No matter what, you ask any hotel general manager, you have absolutely direct possible? certainly can not. The report shows that the air ticket booking revenues $ 47,000,000, an increase of 36%. And growth in ticket reservations, as Ctrip's hotel reservations Q3 2010 also reached an increase of 36%, operating income was $ 52,000,000.
benefits But the need to face the fact that, regardless of airline or hotel, in the pursuit of greater benefits and the premise of the right to speak, they do not want to always be tied to a tree, and Ctrip's competitors are also looking for new and old Ctrip weakness, and provide them with new options.
transition from the intermediary to the service since the birth of Ctrip, the market no lack of followers, among the first to eLong Ctrip model represented by a copy of those, but more hard, the second batch of competitors is quite different , an innovative model to compete directly with Ctrip, such as where to model Cheong Cheung mode.
Where the so-called model, in fact, vertical search engines, will be the lowest price for hotels and air tickets and special offers directly to the user, and to guide the user directly to the hotel and airline booking sites. Help hotels and airlines to develop their own membership system, and reduce commission costs.
and Chang Xiang model is actually a B2B. Chang Xiang and enterprise customers to establish long term relationships, which not only plays an intermediary service, but still a settlement center, the formation of corporate clients with Xiang clearing Chang, Chang Xiang settled with the hotel and airline progressive relationship.
Ctrip do about it?
vertical travel search engine for competition, Min Fan that Ctrip real (blog) is now fully integrated information and services, allowing users to save search time and lean through Ctrip services to meet the internal needs of the guests; In addition, China's civil aviation market, the airline's ticket agents were given to the basic price is the same , the difference is very small, although the parity search found
for business travel management, Ctrip that the main competitors are American Express and other transnational business travel management companies, travel management services to the resources, technology, high capital requirements, basic does not amount to anything other domestic enterprises. And in the past year, Ctrip has successfully gone beyond the CITS (American Express joint venture in China), became the number-one market share in business travel management company. to promote the project. Specific approach, is to travel management singled out from the financial statements. In the past, earnings Ctrip air tickets and hotel reservations only separate the two, later increased business travel management, tourism, vacation two separate projects, which shows the determination of Ctrip transition, from the past a single brokerage service provider to the global travel content changes . Ctrip is not only hotel and ticket reservations, but to integrate them into the business travel management, tourism, holiday content services.
If you draw the travel service industry, smiling curve, then the left is the quality of service, the bottom of the brokerage, the right is the brand. Now, Ctrip curve in doing both ends of the extension. Last year, Ctrip Q3 earnings indicates a positive transition: business travel management business grew 37%, while the tourist resort business is up 161%. Although the four from last year reported a Q3 revenue breakdown specific data to analyze, Ctrip's hotel and airfare dollars the sum of 9900 yuan, and travel management, tourism, vacation, compared with $ 26,000,000 the sum, it seems from the first two This business still greater distance, but the two travel management and tourism business holiday compared with domestic counterparts, is already far ahead of the. Min Fan admitted that Ctrip's next 10 years, is that business travel management, tourism resort consisting of
M & A only for the current chain
Ctrip over 5 billion U.S. dollars in market capitalization, listed third in the world, but the world's largest travel company Priceline, Expedia lags far behind.
Ctrip development path past the one hand, mergers and acquisitions, on the other hand is a strategic investment. Ctrip does not rival the history of mergers and acquisitions, and mergers and acquisitions more actively in the industrial chain. 2009? 2010, Ctrip Travel Network has easily Taiwan, Hong Kong Wing On Travel, and China conducted three rounds of mergers and acquisitions town network. Then, through the acquisition of these three services to reflect the value of the brand?
easily fancy Ctrip Travel Network, is that it is in Taiwan's tourism resources. . The acquisition of Wing On Travel Hong Kong let Ctrip Wing of the line travel agencies to obtain resources to improve its in Hong Kong local upstream and downstream industries. After last year's acquisition of China Town Online, Ctrip for more users and members, while using their relationship with the area to control the resources of Tourism Products town inn.
strategic acquisitions, to Ctrip a rich tourism resources and customers, while also increasing the weight of the company's brand. Appears in the Min Fan, capital value of strategic investments for the services, the brand escort. Home equity investment of 20% and 9% of the Han court reflects the operational thinking Ctrip: Ctrip with these two hotels is the relationship between the upstream and downstream industry chain, through the acquisition mode of operation, several parties will be closely tied capital, is conducive to further understand the tourism Ctrip hotel market right to speak.
to M & A and strategic investment, however, it is only the value and brand protection services to run the foundation, more importantly, need to come up with soft power. Min Fan the need inside and outside the parallel innovation.
so-called external innovation as a service innovation in form, so the former Ctrip launched a The internal innovation, Min Fan is now thinking about how to absorb Japanese lean manufacturing model, this Min Fan led his department go Japan to study Toyota's production process, but he understands there is no lean model in the tourism service industry ready material, Ctrip this time, as then create their own 6 Sigma management system that still need to come up with blazing attitude.
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