What is Ctrip's marketing mix analysis? Urgent. ...

Lead: Foreign media published an analysis article today, saying that foreign companies trying to enter the online travel service market in China must be cautious because of Ctrip, including Expedia owned by American billionaire Barry Diller.

Ctrip.com maintained rapid growth.

Ctrip. Com is the largest online travel service provider in China, which has been growing rapidly in the past few years, attracting a huge user base. Some investors worry that Ctrip's leading edge may be lost as foreign companies enter the China market on a large scale. But Aaron Kessler, an analyst at Piper Jaffray, an American investment company, said: "The question now is not whether Ctrip can compete with Expedia, but whether Expedia can compete with Ctrip."

Excluding equity incentive fees, in the past 1 1 quarter, the annual growth rate of Ctrip's earnings per share reached double-digit percentage. Since the middle of 2003, the annual growth rate of Ctrip's sales has reached at least 46%. In the second quarter of this year, Ctrip's sales reached $37.8 million, a year-on-year increase of 59%. American Investor Business Daily rated the relative strength of Ctrip's American Depositary Receipts as 90 points, ranking in the top 65,438+00% of all stocks in the past 65,438+02 months. Ctrip. Earnings per share ranked 96th.

Analysts are optimistic about China's tourism market.

Ashish Tahani, an analyst at Gilford Securities, predicts that from 2006 to 2009, Ctrip's revenue will grow at an average annual rate of 43%. He said that in key performance data, such as the number of hotel rooms sold and the number of air tickets, Ctrip always exceeded his expectations. Ctrip's main business is to sell hotel reservation service, air ticket reservation service and holiday travel service through the Internet, and its customers are mostly the emerging middle class in China.

JPMorgan Chase predicted that the number of Internet users in China in 2006 was 65.438+37 billion * *, and this number will increase to 65.438+90 billion in 2065.438+00, so there is still huge room for growth in the online travel service market in China. In addition, with the approach of the 2008 Beijing Olympic Games, the number of hotels and guesthouses in China will continue to grow at a high speed, and airlines will also add more planes and routes. Robert Lawrence Kuhn, senior adviser of investment banking department of Citigroup in China, said that the China government has been promoting consumer spending, and the best way to achieve this goal is to encourage more people to travel to China.

Foreign competitors are eyeing up

With the American tourism market becoming saturated, American tourism service giants such as Expedia are seeking to expand into emerging markets. For example, Expedia acquired a controlling stake in China online travel service company E Long through acquisition; Travelocity acquired Singapore travel website Zuji5438 June +2006 10; Together with partner Huang * * *, he runs a travel website, mainly for tourists from mainland China, Hongkong and Singapore. It is reported that Priceline.com plans to increase its investment in the China market.

But in order to make a difference in the China market, American companies like Expedia must face fierce competition from Ctrip. The current market value of Ctrip. This is more than ten times that of its main competitor, E Long. Except Ctrip. Com, E Long and China have many online travel service providers, and the competition in the local tourism market is fierce. Due to the weak growth of E-Dragon, it was reported this month that Expedia might sell its shares in E-Dragon to Ctrip. Although it was established only nine years ago, Ctrip.com has gained a high reputation in China, which is also one of its main competitive advantages.

What are the advantages of Ctrip?

Ctrip.com was founded in 1999 with a start-up capital of only $250,000. The founder is Liang Jianzhang and three other partners. Liang Jianzhang is currently Chairman of the Board of Directors of Ctrip. He is 37 years old and graduated from Georgia Institute of Technology. He worked in Silicon Valley for many years. When other travel service companies focused on star-rated hotels in big cities, Ctrip turned its attention to the field of mid-range hotels and achieved great success.

Analysts said that compared with foreign competitors, Ctrip's main advantage lies in its familiarity with regional markets, laws and policies. Kessler said, "Ctrip knows China consumers better than any foreign company. Ctrip.com understands the needs of consumers in China and pays more attention to the regional market. " Of course, Ctrip has not ignored big cities. In June this year, Ctrip.com announced that it would open an offline travel agency in Beijing to compete with traditional travel agencies.

Kessler also said that China's online travel service industry is still in its infancy, and there is still huge room for growth in the future, so it is enough to accommodate many winners at the same time. He said: "This is not a winner-take-all industry. China's online travel service industry has enough space to accommodate many winners. "