What is Ctrip's profit model?

The following is the content of the profit model of Ctrip. com:

There are two profit models of websites, one is the traffic model, and the other is the membership model. Under the traffic model, advertising revenue can be obtained by relying on huge click-through rate without distinguishing user groups, which is an important source of income for many traditional portals. The profit base of this model lies in its huge traffic.

under the membership mode, it is necessary to distinguish user groups, and then rely on a sufficient number of users to obtain membership service fees, or become an intermediary between members and merchants to earn intermediary fees for merchants. The profit base of this mode lies in the frequency of service use by members. Ctrip. com is actually a membership model. It issues membership cards at no cost in order to get enough members and then earn the fees of travel agents.

it mainly faces middle and high-end business members. These members not only have strong spending power, but also have the need to use this business, which is used very frequently. For Ctrip. com, the frequency of use of individual members is more important to its profit contribution. The expansion of membership is only to get lower discounts from merchants.

therefore, the cost of issuing cards on Ctrip. com can be completely reduced, because one member uses it ten times, which is equivalent to ten members only using it once. Therefore, if ten cards are issued, as long as one person joins the membership, the profit can be guaranteed. Therefore, Ctrip's extensive card issuance is only to distinguish the target customers it needs from the crowd first, and the cost of card issuance is equivalent to the cost of advertising. ?

The points system of Ctrip's membership card ensures the repeated use of its membership card, so although the points have a certain cost, repeated use will increase higher profits and reduce the issuance cost of a single card. Ctrip. com, after developing a huge number of members, is a tough barrier to the market laggards of the same model. Unless competitors can provide lower discounts and more convenient and reliable services, they cannot easily transfer their members. This also makes its market advantage turn into its core competitiveness.

when Ctrip's members reach a certain scale, its membership card will no longer be worthless, on the contrary, it will form a threshold for non-members because it can bring additional practical benefits to members. That is to say, after it made the intermediary platform big enough, it occupied a relatively strong position, which is why Ctrip no longer issued cards for free. ?

Ctrip. com began to use its tourism resources to provide more services with higher added value. For example, its self-help holiday business integrated air tickets and hotel business to obtain higher profits. From its development direction, the Internet is only a platform for the circulation of information and funds, and more profits still come from offline.

Ctrip. com is essentially an intermediary, but with the help of the Internet as a tool, the biggest risk of being an intermediary is that both parties directly trade and bypass the intermediary. There are four main sources of profit for Ctrip.com:

(1) Hotel booking agency fee, which is basically obtained from the profit discount return of the destination hotel.

(2) The air ticket booking agency fee, which is obtained from the customer's booking fee, is equal to the difference between the customer's booking fee and the airline's ticket price.

(3) The income of hotels, airline ticket booking agency fees and insurance agency fees in self-help tours also adopts two ways: profit discount return and price difference.

(4) online advertising. In the hotel's profit discount, users can completely contact the hotel through Ctrip, and then the two parties can directly trade, redistribute the intermediary price difference that Ctrip deserves and avoid Ctrip. Air ticket booking fee, airlines are also opening their own online booking business to avoid losing the profit shared by the intermediary.