What is Ctrip's profit model?

The following is the content of Ctrip's profit model:

The profit model of the website can be divided into two types, one is the traffic model and the other is the membership model. In the traffic mode, 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 flow.

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 model lies in the frequency with which members use services. Ctrip. Com is actually a membership model. It issues membership cards free of charge to get enough members, and then earns travel agency fees.

Mainly for middle and high-end business members, they not only have strong spending power, but also have the need to use business, which is used frequently. For Ctrip. The use frequency of individual members is more important to their profit contribution. The expansion of membership is only to get lower discounts from merchants.

So the cost of issuing cards on Ctrip. Com can be reduced completely, because one member uses it ten times, which is equivalent to ten members using it only once. Therefore, if you send ten cards, as long as one person joins the membership, you can guarantee profit. Therefore, Ctrip issues a large number of cards only to distinguish the target customers it needs from the crowd first, and the cost of issuing cards is equivalent to the cost of advertising. ?

The integral system of Ctrip membership card ensures the repeated use of its membership card, so although the integral has a certain cost, repeated use will increase higher profits and reduce the issuance cost of a single card. Ctrip. After developing a large number of members, com is a difficult barrier for the same type of market laggards. Unless competitors can provide lower discounts and more convenient and reliable services, members cannot be easily transferred. This also transforms its market advantage into its core competitiveness.

When Ctrip's members reach a certain scale, its membership card is no longer worthless. On the contrary, it will form a threshold for non-members because it can bring additional practical benefits to members. In other words, after making the intermediary platform large enough, it occupies a relatively strong position, which is why Ctrip no longer issues 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 integrates air tickets and hotel business to obtain higher profits. From its development direction, the Internet is only a platform for information and capital circulation, and more profits still come from offline.

Ctrip. Com is essentially an intermediary, but with the help of the internet, the biggest risk as an intermediary is that the two parties directly trade and bypass the intermediary. Ctrip's profit sources are mainly four:

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

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

(3) The income of hotel, air ticket booking agency fee and insurance agency fee in self-help tour also adopts two ways: profit discount return and price difference.

(4) Internet advertising. In the hotel's profit discount, users can contact the hotel through Ctrip, and then the two sides can directly trade and redistribute the intermediary price difference due to Ctrip to avoid Ctrip. Airline booking fee, airlines are also opening their online booking business to avoid losing the profits shared by intermediaries.