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Art en: low commission policy boost business eLong hotel reservations
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The third quarter, eLong rapid growth in the hotel business, the growth rate higher than 57% of Ctrip. Yi En advice that the acquisition of Wing and easy travel through Ctrip larger acquisitions to improve its holiday and business travel management sector, to travel one-stop service provider transformation. ELong is focused on hotel reservations online hotel reservations in particular, deepening the "puerile" strategy, competitive differentiation to find profit model, low commission strategies to help business growth eLong catch Ctrip hotel reservations. Recently, two of the largest online travel service provider Ctrip and eLong announced third quarter 2010 financial results. Ctrip hotel bookings in the quarter revenue 3.5 billion, growth of 11% of total revenue for the quarter accounted for 43%. Hotel revenues eLong billion mark for the first time, the chain increased by 17%, total revenue for the quarter accounted for 73%. ELong rapid growth in the hotel business, the growth rate higher than 57% of Ctrip. Art en consultation that help low-commission strategy eLong Ctrip catch rate hotel reservations business. Overall revenue of the hotel business in the two factors, the number of hotel reservations for the quarter increased by Ctrip 11 percent to 510 million room nights; hotel is close to three quarters of the commission remain at 68 per night per level slightly this quarter upward, to 68.25 yuan per night. In contrast eLong Hotel revenues for the quarter was not as Ctrip one-third of the amount, but the rapid growth momentum, up 46%, the chain increased 17%, higher than Ctrip. The Dragon Hotel Arts Commission remained low for four consecutive quarters, the quarter were down 5.5% to 53 yuan per night. Under such circumstances, eLong is rapidly expanding the number of hotel reservation to 190 million room nights, growth of 61%, double the growth rate is a full Ctrip. Yi Yan analysis, charge a lower commission to the hotel to make eLong more competitive than Ctrip, pulling the rapid growth in the number of hotel reservation, but also decrease was partially offset by the losses caused by the commission to help the hotel business breakthrough billion eLong mark, reaching 100.5 million yuan. Hotel commissions for the quarter eLong average per night than the Ctrip Low 16. Yi Yan analysis, eLong to maintain low commissions for three reasons: first, eLong cover most of the hotel and thus lower prices down the overall price level commission of hotel rooms, second, consumer electronics this quarter eLong the application of promotional coupons, and the third, eLong season for access to hotel inventory, take the initiative to reduce the commission's strategy for the hotel. Art en analysis and forecasting, and easy acquisition of Wing Ctrip will travel through more large-scale acquisitions to improve its holiday and business travel management sector, to travel one-stop service provider transformation. ELong is focused on hotel reservations online hotel reservations in particular, deepening the "puerile" strategy, competitive differentiation to find profit models.