Ctrip Where integration Replay: The next crisis ticket business go from here?

Ctrip always have ambitions to become outside China Internet BAT fourth pole, through the capital after a major play Free Dora Games player in the online travel camp system included Ctrip Ctrip possibility of China becoming the fourth pole of the Internet along with amplification. Previously, the founder of Ctrip, Ctrip department head James Liang set a goal: By 2020, turnover Ctrip will more than 1 trillion yuan, becoming the largest e-commerce company and one travel company in the world. From the latest first quarter earnings view, to achieve the objectives, current performance mixed: joy is Ctrip's revenue grew 80% in the last two years, the largest one-year increase; the worry is that this increase was mainly the influence from the merger to bring the report where, where to go if you excluded the revenue part of the real growth in revenue Ctrip and not much surprise. However, this may not be a simple evaluation of the objective, since the first quarter of this year, where to encounter blocked from airlines, which seriously affected their income on the ticket business; the same time, high peel-star hotel business also makes business where to stay revenue decline, in fact, this is Ctrip, where to bring to influence business integration. Where people can not ignore the huge losses, although compared with nearly 50 million loss for the fourth quarter of 2015, where to the first quarter loss of nearly 11 million has been significantly narrowed, but still a drag on the performance of Ctrip - - Although the revenue gained 80% growth, but the period attributable to shareholders of Ctrip net loss of 1.6 billion yuan (245 million US dollars). Clearly, Ctrip and where to get the marriage has not yet imagine the effect, let the two elephants dancing still time. Where was the attack Where to how performance, Ctrip Department reached one trillion turnover, sprint fourth pole has a significant impact, at the same time, where to adjust the results of the business, will also affect the Ctrip Where consolidation effect, thereby affecting the entire Ctrip Department can results achieved. However, the 2016 first quarter earnings, where to go and not to produce a great report card, both fell because of its flights and accommodation booking revenue chain. Reported first quarter 2016 ticket and ticket-related income was 558.2 million yuan (US $ 86.6 million), while in the fourth quarter of 2015, the business income of 636.2 million yuan, where to ticket business and related income a decline of 12.3%. Accommodation booking first quarter revenue of 299.7 million yuan (US $ 4,650 million), an increase of 133.6%, a decline of 44.0%. Project income deduction rooms in terms of turnover income, accommodation booking revenue of 293.1 million yuan (US $ 4,550 million). Where explanation is that ticket revenues were down mainly due to decline in the total amount of tickets. The airline ticket is blocked amount of decline. Earlier this year, domestic airlines have suspended cooperation with where to go, and in March it is completely blocked off for upgrades where to go, because the airline completely blocked where to go from the end of the first quarter, so completely cut off for a quarter of the time and where to go not so long as to where to add Ctrip tickets import supply, these factors make where to go first quarter earnings will not be too difficult to see. But the airline blocked Where power is obviously quite a lot on where to go, the current good news may be of interest Alliance airline play Bubble Shooter Classic may already be broken. But even blocked alliance rupture, where to go in the second quarter ticket revenue is still not optimistic. Reason for the decline in revenue accommodation, where to be interpreted as accommodation reservation revenues decreased mainly due to the shrinking size of the business rooms. Rooms business scale contraction, on the one hand from where to gradually release the effects of high-star hotel business brings, on the other hand also from rival attacks. It is noteworthy that, just before where to go to report earnings of the day, the new American and announced its five months of operating data before the year the hotel business: consumption amount of room nights in the first quarter was 26 million, and highlighted two trends: First, the business has become a mainstream hotel booking, hotel buy business retreat "useful supplement" status; the second is the scene of both local and remote scene. Whether it is the rapid growth in consumption among night the amount of, or the reservation and off-site business development scenarios, it means the new US has become a big business where to stay strong competitors. Where in the earnings announcement on the eve of the new American and publish this set of figures show the muscle quite intended. Where you can look out are under fire from the new American and offensive. Late last year, the online hotel reservation industry came to be where the cut-off operations against the US group, after the marriage with Ctrip, Ctrip on where to go where to go play also targeting team advantage of the standard US group, to hold affordable hotel share. But in the first quarter, where to stay sharp decline in the business chain, to compete in the low-end hotels in the share has become increasingly intense. Where the two main revenue accommodation booking and ticket services are under tremendous pressure, and the marriage did not end Ctrip online travel industry, intense competition, in terms of where to go, this is still a tough year. Transfer service cross-selling pressure How to resolve where to bear on each line of business pressure, the problems facing Ctrip and where to go in front of. For low-end hotel business, Ctrip senior executives and where to go to make their own judgments. Ctrip earnings conference call, co-president and COO, Sun Jie Cheng referred to "in the low end, because now the market competition is very intense, so we will maintain a competitive pricing strategy, to put pressure on competitors." In the earnings conference call, where to go on the path to where CFO Zhu said, "in the small city's low-end hotel reservation areas, online business is eating away at the traditional booking channels market, but now we really have not been those new threats competitors. " The reality is, where to go in the first quarter accommodation booking revenue decline, this is not a good sign. In the camps in the Department of Ctrip, to where important mission is to hold market share in the low-end hotels, where to go despite the low-end hotel business executives showed confidence, but Ctrip has been revealed again playing the price war possibility. As to where the low-end hotel business began to suffer attacks of competitors, the future in the field of low-end hotel, might ignite a new round of price wars. But the biggest looming crisis does not come from the low-end hotel business, but from the ticket booking service. This year, the airline ticket sales commission has promulgated regulations, as well as provisions for agent ticket agent, airline under the play Nail Games new regulations, as Ctrip and where to go to get internet income will be affected, and the resultant self-service ticket commission income It will be substantially reduced. And whether it is or where to go, Ctrip, ticket operations are an important source of revenue, how to respond to changes in ticket sales policy affecting the entire system Ctrip future revenue trends. Ctrip, where to executives in the earnings conference call to disclose information, the technology and business innovation, international air travel business will become its main business income to maintain tickets direction. Meanwhile, on the cross-selling revenue will play a greater role in driving. Where CFO Zhu road mentioned, "Now we have the ticket revenue from cross-selling a large part, I believe that with product innovation and enhance the ability to use big data, it may generate more users to cross-sell tickets the opportunity to generate more revenue from here. " Ctrip COO Sun Jie also mentioned that "a user decides when traveling, ticket booking is the first step, so it is natural that we want the user to cross-sell other travel products, Ctrip provides one-stop service we offer a lot of choice for the user, which is the source of our cross-selling opportunities, and I think this is a very healthy and sustainable model, because from the user point of view is also very helpful. " The so-called cross-selling, that is for later flights or hotels and other users in a single product, the Ctrip where to go for the consumer packaged or recommend other tourism products. For example, consumers booking a hotel, Ctrip can recommend the hotel for its location local recreational vehicles or products and services. Cross-selling is Ctrip and where to go as an important means to promote revenue growth, and this means sales also reflects Ctrip, where to have force in leisure travel. Breaking the previous cross-selling Ctrip, where to sell a single product model, packaged to meet the needs of some users free tourism products. James Liang has this position, "Ctrip outbound Chinese tourism products in the industry is the most abundant, the company has the industry's largest international hotel inventory in the international air tickets, Ctrip's technology, products and services are industry leading. At the same time the company's international business tickets and car rental business has developed rapidly, to help customers achieve seamless transportation links. " The industry generally believe that the outbreak of the leisure travel market is, Ctrip, where to go online, although the field of tourism enterprises,play Hair Games but the main business is still tickets hotel reservations, travel and leisure business real volume is not large. Ctrip and where to go with the marriage ended a bloody state competition, Ctrip focus be transferred to the leisure areas.