Why ctrip, elong go cooperation with?

the author: Hou Jiyong

in the past, where net (qunar.com) on the label is “baidu” vertical travel industry, the business model is the CPC (search terms); Now, where network will label change as “vertical baidu and taobao” of tourism industry, business model is the TTS (Total Solution, hotel online trading system) + CPC.

on April 23, where network CEO ZhuangChen than an interview with our reporter said: “this convenience to consumers, and need to learn, adapt to different OTA websites in the past, now don’t need it, where only needs to face the net, where net for consumers, the equivalent of ‘one-stop online travel service platform.”

in March, where net encourages OTA TTS platform partners into the hotel business, to join the TTS platform to get more preferential price. This decision has caused quite a stir, at the beginning of April, OTA (including elong, with net) announced that from where to collective offline, where it is against the league. Collective offline event less than half moon, OTA union split, home inns announced to terminate cooperation with cheng, with cheng boss ctrip net is alluding to industry control.

then, in addition to elong, including mango OTA returning where to network and connected to the TTS platform.

this is not the end of the war, where the net model of CPC is to ctrip a subversion, “call center model” in the past few years, where rapid rise, peremptory challenge the dominance of ctrip, TTS again moved ctrip cheese, ctrip as online travel industry can’t sit back.

TTS to build new order

the TTS is where the net recently in the hotel industry is pushing a new business model: if consumers purchasing OTA (online travel agent) on the go online products, users booking products behavior completely on where to platform, including fill in the personal reservation information and payment transaction process, where the net again will generate orders to the OTA, and corresponding OTA websites from where to network to provide transaction records and the amount of trading.

CPC business is different, the consumer by where to get the hotel information, click to jump to OTA websites (such as with cheng, elong, etc.), made a reservation in OTA website complete the personal information, payment transaction, etc.

although the TTS pattern on the hotel business has just been introduced and but where the net on the ticket business early in 2010 began to introduce the TTS. Where access to network ZhuangChen super revealed: ticket agent TTS platform, improving the customer experience, also optimized the ticket agent in management process.

for customers to provide convenient and also more than that, the unified administration and supervision function. ZhuangChen super said, hotel coupons to attract customers, commonly used to extract the cashback set barriers, such as the process is complex, unable to extract the cashback, etc., where consumers often complained to the net, but where the net also powerless.

harm the interests of consumers deserve it already so, also disturbed the where to ecology and order. Through the TTS platform, where the net can be payment transactions, position recommended hotel service provider’s behavior.

ZhuangChen super said: can the TTS platform, where network to provide technical support and platform, the entire booking for consumers and follow-up service unified monitoring, these problems no longer exist.

with network CEO tiger wu cheng an interview with our reporter said that compared with the CPC, the TTS platform has the advantage of three aspects, one is the user experience is better; The second is more customer source; 3 it is operating. Where the TTS is equivalent to an IT infrastructure platform, OTA can reduce spending.

some OTA worry, through the TTS, where net captures the user information, is a threat to OTA vendors. Tiger wu don’t think so, “the CPC mode, the user information only in OTA. In TTS mode, where user data at the same time exist in the network and OTA, where the net is not intercept user information.”

tiger wu said, where is the role of network user information is to optimize the service, provide better experience for consumers, OTA should support, not questioned.

tiger wu said: now where network has yet to TTS business charge alone, TTS platform also pay per click, but because the TTS offers more support, order conversion rate is high, the price increases slightly.

for OTA vendors, CPC model equivalent to in the baidu keyword advertising, TTS model equivalent to set up shop on taobao, where new net so called online travel “baidu and taobao”.

to close

where net announced in March: those who where access to the network of TTS system of OTA partner, CPC prices rose at an average of about 10%, without access to the TTS system of OTA partner, CPC prices will rise higher, some OTA complaining, because failure to access the TTS platform, CPC gains as high as 40%.

ZhuangChen super said: the aim is to encourage hotel service access TTS system, some OTA partner CPC prices actually rose 40%, the reason is that where the net cancelled this year big customer rebates CPC prices rise, most of the gains shall not exceed 20%, belong to the normal floating range.

the practice of price increase has caused some OTA partner resistance, OTA partner think prices rise too high, they began to do the following: price rise too high because of compulsory OTA partner access TTS platform; Mandatory OTA access TTS platform where the net is the cause of driven by the interests.

at the beginning of April, before qingming travel peak in 2013, including elong travel network, with cheng network, which net OTA vendors such as mango, nets and suspended cooperation with where to network. This event is deduced for OTA collective shelves hotel product.

elong CEO guangfu cui media interview where intention for the following: one, where the original search terms business model remains the same, namely the CPC model, PPC; Second, the TTS mode is similar to taobao travel, charging mode should also be the same, to charge 3% of the total commission. 3, where net will own signing hotel, bypass OTA OTA by yourself.

ZhuangChen super denied guangfu cui said: “no commission sharing, TTS is click charge; Insist to do platform where network service providers, will not do OTA himself.”

the “alliance” with split ends, an email split the union inside come to light.

on April 19, and network CEO tiger wu cheng said that with routine network of more than 2000 users on the same path can’t find a home inns hotel. Tiger wu long release weibo said “a letter to home inns hotel partners”. Tiger wu think home inns such behaviour is not home my will, but has been directed. Tiger wu said, in order to maintain a monopoly, pose no threat to any of his rivals. Ctrip alluding to home inns, the second largest shareholders.

after 13, mango, restoring cooperation with cheng network successively and where to network, access to the TTS platform. 26, tiger wu accepted our reporter interview: in addition to elong, ctrip, where the rest of the OTA and restore cooperation.

for the reason of the shelves, tiger wu think compare single: price is too high, OTA bear not to live. He revealed in between 40% and 60%. “Off the shelf” after the incident, where network emergency communication with the OTA, understand the OTA industry profit and cost, adjust the price again.

this newspaper reporters learned that, as early as April 13, with cheng, teng state, where to order such as OTA recovery and network cooperation. This is seen as home inns announced on April 19, and with the cause of the termination of cooperation. Then other website began to return to where, on April 23, mango regression. At this point, in addition to ctrip, elong, where most OTA regression network.

tiger wu said: “this is a mutually acceptable price, so we continue to cooperate with network of where to go.”

industrial chain game

for TTS platform where net, tiger wu said, “to the enterprises of different market position, said reaction will be different.” For with cheng network such OTA, is a good thing; For vested interests in the past, it is a bad thing, their position is no longer secure, interests will suffer.

for OTA, where network as the entrance to the value cannot small gaze, airline tickets, for example, in December 2012, the monthly single peak for 150000 days out of the ticket. Ctrip, elong actually don’t want to sit back with cheng net benefit, under the collective events before, elong keep CPC with where to network platform of cooperation. Sources said that ctrip has been trying to go cooperation talks.

in whether and where network cooperation, ctrip will still be careful. According to a leading global provider of online competitive intelligence Hitwise data show that is driven by spring, in January 2013, travel website traffic overall growth of 82% last month, visits to the top three, respectively 12306 web sites, where web and ctrip.

the TTS compared with CPC mode, can introduce more tourism resources the Internet platform, especially the offline tourism resources. TTS system not only for the use of online travel agent (OTA), hotel, inn, hotel group, single body airlines also USES the TTS platform, etc. At present, jinjiang star, super 8, 99 chain, pudding and other hotel chains, hainan airlines, sichuan airlines and other airlines are used where the TTS system.

traditional offline travel service agency is accelerating the net, but where is leading the trend is to network, is not industry leader ctrip, where network or will replace ctrip as online travel service Internet portal, this is ctrip, elong even the most worried about, is also a elong, ctrip two OTA vendors where are desperate to resist the TTS.

on April 23, ctrip announced that its “global ticket booking platform” new online, and to increase the business for the hotel, air tickets, tourism vacation equal status of one of the core business sectors. As is known to all, with cheng is currently the largest self-help travel platform, its tickets business industry in the largest, while the ctrip to tourism is also seen as to the core business of the sniper.

hate house and wu, with where to site team peers, ctrip also won’t let go.

ZhuangChen super this statement: online travel market potential is unlimited, consumers still have a lot of tourism products have no way to choose and book through the Internet, with its focus on competition, rather than focus on cooperation, focus on opportunities. Root according to EnfoDesk analysys, a think-tank, recently published the 2012 online hotel competitiveness analysis report, according to data from 2012 online booking permeability by about 23%, the industry space is huge.

ZhuangChen super opponents don’t see it that way, they saw the ambition is to unify river’s lake.