Ctrip where to go against money alliance widening the moat

May 22nd, Ctrip announced investment of about $400 million from the hands of Online Travel Corporation Expedia elong acquired a stake of 37.6%, after the completion of the transaction, Ctrip will become the largest shareholder of elong.

this is not the first place to operate in Ctrip rivals in the capital, before elong, Ctrip invested Fasthotel housekeeper, toursforfun, the same way network, the way cattle, Travelfusion.

from Liang Jianzhang after the return of Ctrip led these investments is not difficult to see, Ctrip has been to draw more allies, the use of allies in the relevant vertical areas of advantage, to further expand their market size. And all this is because the concentration of the entire online travel market continues to strengthen, in this industry, OTA companies have to expand their losses to expand their territory.

let the money burn more efficient

according to the British "Financial Times" research arm "China investment reference" (China Confidential) Chinese 2014 estimates, the number of outbound tourists reached 117 million passengers, an increase of 20%, according to official statistics, Chinese only less than 6% of the citizens hold a passport.

in the face of such a market space, online travel companies have chosen to expand the losses in exchange for revenue growth, also win the market, even the profit of Ctrip also take the initiative to turn into losses. This strategy has been affirmed in the capital market, in the case of expanding losses, Ctrip, where the two companies have repeatedly high stock.

, however, based on China’s huge population base, as well as Internet services in China, the majority of the following 3 lines of penetration of the city, the loss of the market seems to compete for a protracted showdown. But for the management side, not only in the pursuit of high returns on investment, as well as the requirements of financial efficiency.

where to go, for example, 2014 full year, where a total loss of 1 billion 850 million yuan, the loss of more than the total revenue for the year of 2014. As of the end of the fourth quarter of 2014, where the cash, cash equivalents, as well as the total value of short-term investment is only $1 billion 500 million. Where to go if you want to maintain the pace of expansion in the past year, it is necessary to carry out a new round of financing, or in their own profitability to find new solutions.

Ctrip seems to be able to see this, at the expense of profits in exchange for higher revenue at the same time, but also figuring out how to spend more money on each of the more efficient. So, Ctrip in this period through capital operation, draw many potential areas of vertical competition, one more in the fierce price war to control the cost, on the other hand also widened with other online travel companies moat.

is defensive and attacking

Ctrip

moat for who? Is clearly heady where. With the advantage of the wireless side, where the advantages of the mobile terminal more >

May 22nd, Ctrip announced investment of about $400 million from the hands of Online Travel Corporation Expedia elong acquired a stake of 37.6%, after the completion of the transaction, Ctrip will become the largest shareholder of elong.

this is not the first place to operate in Ctrip rivals in the capital, before elong, Ctrip invested Fasthotel housekeeper, toursforfun, the same way network, the way cattle, Travelfusion.

from Liang Jianzhang after the return of Ctrip led these investments is not difficult to see, Ctrip has been to draw more allies, the use of allies in the relevant vertical areas of advantage, to further expand their market size. And all this is because the concentration of the entire online travel market continues to strengthen, in this industry, OTA companies have to expand their losses to expand their territory.

let the money burn more efficient

according to the British "Financial Times" research arm "China investment reference" (China Confidential) Chinese 2014 estimates, the number of outbound tourists reached 117 million passengers, an increase of 20%, according to official statistics, Chinese only less than 6% of the citizens hold a passport.

in the face of such a market space, online travel companies have chosen to expand the losses in exchange for revenue growth, also win the market, even the profit of Ctrip also take the initiative to turn into losses. This strategy has been affirmed in the capital market, in the case of expanding losses, Ctrip, where the two companies have repeatedly high stock.

, however, based on China’s huge population base, as well as Internet services in China, the majority of the following 3 lines of penetration of the city, the loss of the market seems to compete for a protracted showdown. But for the management side, not only in the pursuit of high returns on investment, as well as the requirements of financial efficiency.

where to go, for example, 2014 full year, where a total loss of 1 billion 850 million yuan, the loss of more than the total revenue for the year of 2014. As of the end of the fourth quarter of 2014, where the cash, cash equivalents, as well as the total value of short-term investment is only $1 billion 500 million. Where to go if you want to maintain the pace of expansion in the past year, it is necessary to carry out a new round of financing, or in their own profitability to find new solutions.

Ctrip seems to be able to see this, at the expense of profits in exchange for higher revenue at the same time, but also figuring out how to spend more money on each of the more efficient. So, Ctrip in this period through capital operation, draw many potential areas of vertical competition, one more in the fierce price war to control the cost, on the other hand also widened with other online travel companies moat.

is defensive and attacking

Ctrip

moat for who? Is clearly heady where. With the advantage of the wireless side, where the advantages of the mobile terminal more >

Leave a Reply

Your email address will not be published. Required fields are marked *