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Online Travel New Battlefield Ctrip Starts With Tripadvisor To Create "Transaction + Content" Closed Loop

2019/11/16 9:33:00 0

OnlineTravelBattlefieldCtripTripadvisorTransaction + ContentClosed Loop

On November 5th -10, the biggest news event in China is nothing more than the second China International Import fair. In fact, during this time, some news was quietly released without causing too much attention, but the impact was far-reaching.

In November 7th, Ctrip reached a strategic partnership with TripAdvisor and expanded its global cooperation, including joint ventures, global content cooperation and corporate governance agreements. Through this cooperation, Ctrip will also get hundreds of billions of comments and comments on accommodation and attractions in TripAdvisor.

In the agreement, Ctrip promised to invest more than 317 million US dollars in TripAdvisor shares and get a seat of the board of directors. Although this is understated by Ctrip, it leaves behind the imagination of further capital cooperation in the future. What is more important is that the relationship between the two sides is much closer than that of the other two competitors (same Cheng elong + Hornets nest) six months ago.

At that time, Ma cellular CEO Chen Gang told the twenty-first Century economic report that cooperation with Cheng Yilong and Ma beehive was exploring a closed loop of transaction + content. Now, the joint efforts of Ctrip and TripAdvisor have strengthened the new war of online tourism industry, and behind the transaction and content are giants seeking construction of the moat.

There are many ways to understand the cooperation between Ctrip and TripAdvisor. - Gan Jun photo

First level annotation: Internationalization

There are many ways to understand the cooperation between Ctrip and TripAdvisor. For example, from the perspective of internationalization of Ctrip, Liang Jianzhang, chairman of Ctrip's board of directors, recently put forward the two new strategies put forward by Ctrip 20th anniversary, namely, high quality and globalization. TripAdvisor is the best annotation for Ctrip's new strategy.

"TripAdvisor is an international comment platform with 28 languages." Zhang Yang, an associate professor of China Tourism Research Institute, believes that through cooperation with Ctrip, Ctrip can quickly enter the international market and make up the content competitiveness in the international market, and will also become the traffic entrance of China's entry market.

Founded in 2000, TripAdvisor is the best company in the world in terms of tourism content. According to TripAdvisor's own data, TripAdvisor has a monthly traffic of up to 490 million. The website and App cover 8 million 600 thousand accommodation, restaurants, attractions, games, airlines and cruise information. There are more than 830 million comments and suggestions covering 49 markets and 28 languages in the world.

Such content and information enterprises also have many similar kinds in China, such as Ma Ying and poor tourism. Just like Chinese people like to go to the front of the horse and visit the net to inquire the destination information before going on a trip, and do the pre planning strategy. Foreigners also like to do TripAdvisor on the tour before going on a tour. Check out which hotel is good, which scenic spot is really fun, which route is more reasonable. And because TripAdvisor has a restaurant reservation platform The Fork, restaurant reservations and reviews are also very rich. Therefore, TripAdvisor is more like the combination of hornet nest and public comment network in China, which plays a very important role in foreign consumer travel decisions.

In a survey conducted in 2018, marketing technology platform Conductor Searchlight showed that TripAdvisor accounted for 9% of all platforms at the early stage of user travel, and had a greater impact on travel decisions. In the field of hotel search, TripAdvisor ranked second, second only to the hotel reservation brand Hotels.com of Expedia. The search volume of TripAdvisor ranked first in resort search and scenic spot search.

Therefore, Sun Jie, CEO of Ctrip group, said that cooperation with TripAdvisor can further optimize the user experience, and users can access millions of comments and pictures generated by the global users, which can help to destinations for tourism booking.

In fact, Ctrip itself did not work hard in content. Since the establishment of Ctrip, Ctrip has tourism communities and tourism forums. Later, it has independently launched the donkey evaluation network, and has purchased the cicada travel notes with the content of tourism, and has built the content platform of the hydrogen balloon tourism. Now the video is popular. But these content platforms have not become "exploding money". "In terms of content, Ctrip has made a lot of efforts, but it has not made significant breakthroughs in content." Chen Wenjie, President of the Tourism Industry Research Institute of China Tourism Group, thinks that Ctrip needs external assistance in content, such as high-quality comments and pictures, which is precisely what TripAdvisor can give and help to enhance Ctrip users' tourism experience.

Therefore, the cooperation between the two sides is not surprising.

Second layers of notes: closed loop

"Ctrip has released G2 (high quality + internationalization) strategy in 20th anniversary celebration, which can be understood as a response to and promotion of G2 strategy." Zhang Yang believes that cooperation with TripAdvisor, from a strategic perspective, is an accelerated strategy of internationalization. From a business perspective, it will enhance content impact and achieve a wider global "content + transaction" closed loop.

What's interesting is that this is not the first company's intention to do content + transaction closed loop.

In the same year, eLong and Ma cellular tourism announced the launch of strategic cooperation in May 20th this year. They intend to complement each other's business and build a closed loop mode from UGC to one-stop travel platform, and continue to layout under the WeChat ecosystem to meet and serve differentiated travel needs of users.

Feng Rao, director of the center of Ma beehive Tourism Research Institute, explained that in hornet's nest, the main content of this cooperation is to embody the external trading scenes of hornets' nest, creating more scenes of "content + transaction" ecology, and complementing each other with elong, and providing services for Chinese travelers in WeChat's small program and its tourism scene.

After the cooperation, consumers will see that the Hangzhou botanical garden will be blooming with other people's share. The tickets will be booked with Cheng Yilong's botanical garden. Or when consumers subscribe to the high speed rail and hotel through the same elong, we can check the Hornets' Guide to the destination and share the content with the local users.

In fact, this is what Chen Gang has been trying to achieve since 2015. Hornets' nest is similar to TripAdvisor's development idea. In the same year, it began to transform, doing "content + transaction" ecology, hoping to realisk content.

Feng Rao said that the hornet's unique "content + transaction" mode helps users break the information inconsistency, solve travel problems and make consumption choices. At the same time, through the introduction of "content entry", it will share huge traffic and partners to help tourism enterprises obtain accurate traffic and orders, while saving high marketing costs, and jointly provide consumers with the most cost-effective travel products, so as to achieve win-win cooperation among users, partner enterprises and hornets' nest platforms. Three.

A good wish is never easy to achieve. TripAdvisor transformation is not successful, resulting in stock prices continued to decline in recent years, the management structure has also been repeatedly turbulent. However, if the horse's beehive is transformed smoothly, its business volume and revenue will soar, it will not be tied up with the same Cheng elong.

In twenty-first Century, the economic report learned from insiders both sides that in fact, the cooperation between Ma beehive and Tongcheng elong is not so close, so the effect is not as expected.

But this does not mean that the "content + transaction" closed loop is not worth doing. According to the report of new tourism consumption trend report 2019, 60.8% of users have shared the experience of tourism in the past year, and 91.1% of the sharing carriers are mainly pictures. At the same time, the sharing of short videos has also been increasing. 42.3% of users have used this sharing carrier. The survey data of Ma cellular tourism network show that users share the content of scenery and food, and the local customs, travel feelings and photos of people are divided into three or four and five places.

Along with the willingness to share, the user's demand for quality tourism is enhanced. According to data from horse honeycomb, 95% of tourists will browse the content of the tour before going to travel. 56% of the users said they would browse a lot of strategies and make a detailed plan before going out.

Since 2019, the number of users sharing short content has increased by 150% over the past year, and the number of short content points has increased at a rate of 32% per month. That is to say, the fragmented content form of short video and short content has gradually become the "new favorite" when people share and get content, and also become an important carrier of "grass planting".

"Content is new traffic entry, especially the platform represented by UGC content has become a new contact to stimulate tourism demand, and also a new distribution channel and export for tourism products and services." Zhang Yang thinks that "transaction + content" is not only the demand of content, but also the demand of OTA, in fact, most platforms have already reached cooperation with content side in various ways. Internationally, Booking, Expedia has also been widely cooperating with Yelp, Ins, Facebook, Youtube and other content platforms.

On the other hand, studies have pointed out that more than 90% of transactions now occur on mobile terminals. The convenience brought by mobile transactions has also prompted consumers to gradually change from "price driven" to "service driven", and "one-stop" consumption has become the mainstream trend. It also indirectly led to the birth of super App. After all, consumers will be more and more impatient to switch between different App. It is better to complete all the requirements under one App. In response to the new demand for consumption, many Internet Co have been extending the industrial chain in recent years, expanding the ecosystem and forming their own moat. Ctrip +TripAdvisor and the same Cheng elong + horse honeycomb are actually digging the river. The demonstration effect of the four companies may aggravate the competitive pressure of other companies to create a closed loop with content. Zhang Yang believes that contention for content will not stop. OTA will cooperate with new social media in various ways, and M & A is just one of them.

Will Ctrip buy TripAdvisor in the future?

Ctrip's 7 day announcement left a foreshadowing, saying that the Ctrip group had to buy TripAdvisor 6 million 950 thousand shares in the open market in one year or purchase TripAdvisor shares with a maximum value of 317 million 600 thousand US dollars. Some market participants speculate that this is the preparation for Ctrip to buy TripAdvisor in the future. Chen Wenjie thinks this is too early.

However, Chen Wenjie admits that there is direct capital relationship, and the degree of cooperation will be more closely than that of general strategic cooperation. In order to make the closed-loop operation successful, the Ctrip will take TripAdvisor?

Who knows? Let's wait and see.

 

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