Where Ctrip VS to the B end of the knife with blood running

lead: online travel industry, it appeared in a duel, search platform where to go through the hotel direct quickly turned to OTA mode, Ctrip OTA plus the layout of the hotel suppliers, looks more like search platform. Involved in the stock layout, high star and star hotel in the main battlefield, Ctrip first obvious trend; low star and Econo Hotel is a war of attrition. The B end of the C (Customer) as the primary offensive and defensive end to attract the eye, originally not to hear the smoke flavor, but the recent "Ctrip" and "Ningbo shelves door" incident of two, but B will pull on the table running. In recent years, the hotel industry ecosystem slowly remodeling, each link of the industry are facing new risks and new prospects, this multi chess game, from Ctrip and go to the marginal cost and cheap hotel inventory flow to where the transformation point of view, both sides seem to have bright prospects.

hotel industry new order

China’s hotel industry supply chain is very complex, in order to maximize the benefits of the hotel, as far as possible at the best price to sell up to inventory, will use a variety of sales channels (the higher the star hotel is the case). As the picture shows, in general, the most direct marketing of the hotel (such as walk in, front occupancy), followed by the C side of the distribution (such as OTA), the cheapest is the B side of the distribution (such as wholesalers agreement). Therefore, the optimal price is not OTA to get past, some (in theory) was controlled at B end (end or not get C online selling price), for example, the wholesale price of the agreement price, travel price, MICE price, will be cheaper than the price of OTA C directly to the end. Ever since the rise of these B side of the price through the B2B wholesalers sold to businesses, businesses and then put where to go, because the price is cheap enough, resulting in a blow to OTA sales.

B terminal distribution of the stock flow is as follows: Hotel – B2B wholesalers to businesses to consumers. In this mode, largely by the channel management department of hotel (a few employees steal put price) low inventory to sell, regional wholesaler or small travel agency, as part of the wholesalers B2B platform, the hotel inventory resources to sell businesses (purchaser), merchants through the platform (where to go, Ctrip now is shipping).

hotel industry is much higher than the complexity of the ticket, different star hotels, each with different business models and risks. For the distribution of B2B platform / merchant /OTA/ search platform, must also be in a different way to cope with.

must be mentioned is 2012, Ctrip and elong hotel price war, not only caused C end cashback war, both sides in order to reduce the cost of purchasing strategy, also where merchants inventory to sell to their customers. To meet the needs of customers on the one hand, on the one hand also indirectly to the hotel position, due to the amount of OTA was very large, plus the amount equivalent to the hotel wholesalers, nearly 30% of the stock must be the end of B in low-cost shipping, returns to. The price war forces three parties (hotels, B2B, OTA) to sit down to where to go