Tujia bought Ctrip, where to go apartment B&B business, the largest M&A in the history of non-standard accommodation industry.

10/0 On October 20th, Tujia announced the acquisition of Ctrip and the apartment B&B business where to go. In the future, Ctrip and the apartment B&B channel where to go will become the traffic entrance of Tujia. Luo Jun, CEO of Tujia, revealed that the transaction was mostly completed in the form of business, resources and shares (both parties did not disclose the cash and changes involved in the transaction). At the same time, Ctrip, B&B business team and Qunar. com will all return to their homes.

* In the B&B business acquired by Tujia, B&B refers to the personal housing at the C end, excluding commercial inns and B&Bs.

Ctrip traffic blessing, the giant was born.

Looking back at the relationship between Ctrip and Tujia, as early as 20 12, Ctrip participated in the A round of financing of Tujia and has been investing with it. It was not until the third quarter of 20 15 that Ctrip stopped holding Tujia and removed it from its financial statements. It's nice to enjoy the cool under the big tree. Once, a large part of Tujia's traffic came from Ctrip. Now Ctrip's "heavy position" in Tujia is a great shock to the irregular accommodation industry.

After the completion of this merger, Tujia will have unique traffic resources, and Tujia has always had a strong ability to control offline services. This merger undoubtedly contributed to the birth of non-standard accommodation industry giants, and it is likely to directly pull the war of non-standard accommodation industry into the second half.

Luo Jun, CEO of Tujia, repeatedly stressed in an interview with 36Kr, "Looking back in the future, the impact of this merger will be very far-reaching, because Ctrip accounts for half of the country in terms of traffic, inventory and customer base. When we integrate these four platforms (of course, we will continue mergers and acquisitions later), we can grow rapidly. "

In fact, from 20 1 1, Tujia, who started as a self-operated apartment, has made great strides all the way. In just four years, it has become a unicorn array. Compared with the counterparts of non-standard accommodation, it has developed very rapidly. Besides the continuous growth of scale, its business forms are also expanding outward.

In 20 15, Tujia completed the D round of financing, and the housing model expanded from self-operated to homestay housing. In June this year, Tujia announced the acquisition of Ant short rent, and officially launched the campaign of B&B housing market. The announcement of the merger and acquisition of Ctrip and apartment B&B business where to go will also obtain the synergistic effect of Ctrip and where to go.

At the level of apartment business, the core of its business lies in housing. Luo Jun believes that in terms of online self-management, Tujia's ability to control housing is almost the first in China. Building enough barriers with houses is difficult for other players to surpass and stop.

Taking homestay housing as an example, flow is the key to success. In 36Kr's view, this is the most advantageous aspect for Ctrip to support Tujia. Landlords are profit-seeking, and they tend to put their houses on the platform with the largest traffic. The dispute over the interests of homestays lies in the dispute over traffic. This is also the first battle of 36Kr guessing to attack Airbnb. Ctrip will never sit back and watch the rise of potential rivals, and its investor Priceline is also competing with Airbnb overseas.

Luo Jun believes that this merger will also bring great synergy: Ctrip, Qunar, Tujia and Ant short rent have complementary advantages-Tujia focuses on (leisure and holiday) accommodation, Ant short rent prefers short rent, Ctrip and Qunar prefer business-after integrating the four platform resources, Tujia can provide consumers with "multi-person, multi-day, personalized and high coverage" services. When consumers are looking for housing,

Internal division of labor, clear strategy

This time, in parallel with the acquisition of Ctrip and where to go, it is the split of Tujia's online and offline business. Luo Jun said that Tujia hopes that the development direction of its business lines will be clearer, the operation and management will be more focused, and the work efficiency will be improved.

Tujia is developed by offline business. At that time, they took their own house directly from the developer and provided accommodation for consumers. This is also the primary market that Tujia said. In the secondary market, individual consumers share their houses with Tujia platform. As for the third-level platform, it means that the house has been listed by other individuals or agents, and then access the Tujia platform to get orders. In the future, the secondary and tertiary markets will divide Tujia's online business, mainly as a trading platform.

In Luo Jun's view, the identities and goals of these two businesses are different, and the management methods of business teams are also different. Luo Jun also made it clear to 36Kr that the ultimate goal of the business split is to make Tujia the first in the two markets of self-operated apartments and homestay housing.

Ecological map of Tujia nationality

In Tujia's supply chain system, online business should be oriented to owners and landlords respectively. Under the understanding of 36Kr, the owner corresponds to the secondary market housing, which often exists in Tujia as an investment in the form of trusteeship; The landlord system is aimed at the house that is taken care of, including C-side and agent (also known as Little B). Tujia has built two systems for this purpose, namely RBO (independent operation of individual houses) and RBA (decentralized houses operated by professional agents).

In addition, in addition to its own system, Tujia began to rely on the "Tujia" strategy to lengthen the industrial chain-Tujia has invested in worry-free housing, small snail fun rent, cooperated with Weshare, jointly built a medium-and long-term rental brand Tujia Sheng Jie with Yashige, and cooperated with Yuanda residents to launch a villa brand. Through the connection of capital level, "Tujia" has gradually formed the integration of capital, long-term rent and hotels.

Tujia goes to sea, Airbnb enters China

According to 36Kr, the negotiation and decision on the merger only took more than one month and made rapid progress. At this time, Airbnb is entering China on a large scale, which inevitably makes people feel that this is an attack and defense by Tujia and Ctrip. After all, Airbnb has publicly stated that Tujia will be its competitor in the China market.

Luo Jun disagrees with this. "The accommodation industry has entered a period of rapid growth from the introduction period. When the business of one or two companies in an industry has achieved several times of growth, it indicates that the industry is about to grow rapidly. In the past year, Tujia's various businesses have achieved 500%-800% growth. " Various businesses naturally include B&B parts. In the planning of Tujia, in the future expansion to overseas markets, we will focus on expanding B&B houses, not self-operated apartments.

Sequoia and broadband attract Airbnb, Tujia has Ctrip, and short rent, another player who has attracted much attention in the non-standard accommodation market, seems that apart from overwhelming marketing promotion, little capital action has been disclosed this year. The latest round of $60 million Series C financing was announced in July last year, and it has been more than a year now.

However, it is worth mentioning that Qunar.com, which was secretly bred, has now expanded to 200 cities across the country. As an independent non-standard accommodation platform, the cooperation between Tujia and Ctrip and Qunar did not involve where to go.

Another son of Ctrip

20 16 entered the countdown. Before Ctrip and the US delegation held hands, the tourism industry frequently staged big dramas at the end of this year. Wanda Tourism was merged into Tongcheng before, and Tongcheng Tourism said that it would strive to become the first offline travel agency. Later, Ctrip announced a strategic investment (acquisition) in Zhihu, and added more offline stores through 5,000 stores in second-and third-tier cities. Lenovo 20 14 staged a "customer-cutting" war, and there will be many tough battles under the tourist line for some time to come.

At the same time, "offline" should also be the key word of the tourism market in the next year or two, not only to get customers offline, but also to go deep into the offline and upstream of the industrial chain in terms of resource integration. Offline is relatively a short board of OTA platform, especially for businesses that emphasize vertical, service and non-standard resources. From this point of view, Ctrip and Qunar hand over the apartment B&B business to Tujia who is good at long-sleeved dancing, which seems to help Ctrip become more valuable in the non-standard field.

Through this merger, 36Kr guessed that Ctrip would focus more on playing the role of a good traffic portal. Under the business line, where management and operation are difficult to coordinate with Ctrip's main business, it may be parallel through its own business and external investment. When the latter develops rapidly and has enough room for growth, it may be like Tujia today. Ctrip will package this business line into the invested company to maximize the synergy.