Is "customized travel" very niche and difficult to make a profit? Why "Wuer Journey" can achieve large-scale profits

As the world’s largest source of outbound tourists, Chinese citizens’ outbound trips exceeded 130 million in 2017, of which 42% were independent travel. However, the online rate of customized games is relatively low, only 7.9%. According to iResearch, the transaction size of online travel in 2017 was 86.5 billion yuan, while online customized travel was only 6.8 billion yuan. Therefore, in the field of online customized travel, some eager players have emerged in recent years, but 36 Krypton understands that there are not many companies that are truly profitable.

In this track, we have reported on Wuer Travel, a travel customization company that specializes in outbound travel. Recently, Cai Yun, co-founder of Wuer Journey, revealed to 36Kr that the company has achieved profitability in 2018 and is expected to achieve large-scale profitability in 2019.

With the improvement of AI system application and management efficiency, Wuerjour’s annual order growth rate reached 100%. The gross profit level in 2018 doubled compared with 2017, and the annual sales increased from 2016 to 2017. It more than tripled from 2018 to 2018.

After learning more about it, we found that although cultural tourism is a relatively traditional labor-intensive industry, Unique Journey has made many attempts in technological innovation and has obtained a total of 17 computer software copyrights. In 2017 Obtained high-tech enterprise certificate. The obvious increase in performance and income is also related to these technical barriers:

In addition, according to Cai Yun, unlike many travel customization/free travel service providers who have a relatively concentrated source of customer orders, Wuer Travel’s The proportion of customer acquisition channels is relatively even, including natural Internet traffic, official WeChat accounts, cross-industry cooperation, OTA platforms, travel agencies and other B-side cooperation. The repurchase and old-to-new ratio within one year can reach 50%.

In 2019, the focus of Wuerjourney will be on technology iteration, expansion of B-side business, and further improvement of profitability. The company currently has nearly 300 people and has received 4 rounds of financing in total. The last round of financing occurred in 2017, a 50 million yuan Series B financing invested by the "Kunlun Xinyuan Fund" under PetroChina Kunlun Trust.

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Note: I am 36Kr Mo Xiaoli. I pay attention to the latest news in the entertainment and consumer fields. To communicate, you can add WeChat Spontaneous-Literary. Please note your name, company, and position.