Vertical tourism search development has spawned a major change in the travel booking industry

[May Point Network] Two weeks ago, publicly launched the "Double Low Price Guarantee, 3 times Paying Commitment", that is, under the conditions of online booking, Ctrip guaranteed the lowest domestic hotel price market, otherwise it will pay 3 times...

[May Point Network] Two weeks ago, publicly launched the "Double Low Price Guarantee, 3 times Paying Commitment", that is, under the conditions of online booking, Ctrip guaranteed the lowest domestic hotel price market, otherwise it will pay 3 times the cash price difference. A week later, Yilong quickly received the move: As long as the price of eLong is higher than that of Ctrip, it will return the cash according to the principle of 3 times the difference. At this point, the price war of the hotel online booking market opened.

The competition in China's online travel market has become increasingly hot, and the competition between Ctrip and eLong is a normal embodiment of market competition. Since 2009, the online tourism industry chain has become increasingly rich, and the number of new entrants in various links has increased, affecting the pattern of the entire online travel service market. The direct sales of upstream manufacturers have been continuously strengthened, and the differentiated development ideas of agents have gradually become clear, and there are many in the industry. From the case of mergers and acquisitions, where to go, the new vertical travel media such as 麒 增多 increased the choice of operators. The fierce competition environment has brought pressure to the development of Ctrip and eLong.

From the second half of 2009 to the beginning of 2010, the strategic layout of the online travel booking market is accelerating: Expedia's acquisition of Cool News, Ctrip and Yanxun Travel Network signed a strategic cooperation agreement, and eLong also launched mergers and acquisitions on several hotel agency websites. A series of actions by the core operators in the industry further indicate that the online travel booking market is welcoming the era of horizontal integration and strategic alliance, and the era of exclusive monopoly of operators will never return.

Serious concern was once the consistent attitude of vertical search for tourism in the industry, but after the rapid development in 2008-2010, the current vertical search for tourism has become an indispensable platform for consumers and suppliers. From the user's point of view, whether it is personal travel or business travel, in order to save costs, hotels with lower standards will be selected, and economy class instead of business class will be selected, and other more economical travel products will be selected. From the perspective of tourism service providers, the industry environment is affected. At this time, it is necessary to adjust the product structure and expand marketing channels. For example, launching cost-effective budget hotels, providing value-added services, and increasing the proportion of sales directly facing customers. The high recognition of consumers and suppliers makes travel search services an important part of the online travel service chain and a catalyst for the new round of development. For example, the travel network based on the hotel search business, regardless of which operator's price is lower, users can always find the lowest price on the fast, in fact, the price war itself gives the user a use of travel search The reason for the engine. The neutrality of a vertical search site is its core strength.

At this stage, online booking of air tickets and online booking of hotels are the two most mature products in the online travel booking market. Relative to airfare, the market growth from hotels is relatively slow. The positive significance of the hotel online booking market price war is that it can promote market regulation and industry development to a certain extent. According to a report released by iResearch in the first half of 2009, the two main reasons that hinder users from booking hotels online are: users have doubts about the gap between network information and actual products, and network information or products are not comprehensive. At present, these two obstacles will be removed because of the alliance between operators and tourism vertical search, so the hotel's online booking market will not be far behind.

Consumers can get very limited Benefits in this price war. The lower thresholds for payment, the difficulty of obtaining evidence, and the cumbersome procedures may make the promised gimmick greater than the essence. Price war is not a long-term solution to retain customers. With the development of online hotel industry, service quality and user experience will become the most important factor for customers. Only by focusing on providing differentiated products and services and enhancing user stickiness can we take the lead in the competition. In addition to the convenience of convenience, price transparency and other advantages of online travel services, the characteristics of the Internet itself will attract more travellers to collect and exchange information online, and the one-stop service of information + exchange + reservation is online travel service. The inevitable trend of the development of manufacturers, and with the gradual maturity of all aspects of e-commerce in China, the number of users who choose one-stop network services will increase.

The price war is just the beginning. How to make the difference between products and services, how to reflect the reasons for users to make choices is the real core competitiveness. Therefore, we are happy to see the changes that are brewing behind the price war. See the horizontal and vertical alliance of the industry, together to make the cake of the online travel booking market bigger, the service is better, and win the trust of consumers.

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