旅游资讯——分享精彩的旅游资讯
booking

China’s trip.com group mimicks partner TripAdvisor with new content offerings

2021/3/22 12:40:11
Many travel businesses, whether it is Trip.com Group in China, Traveloka in Indonesia or Despegar in Argentina, are refashioning themselves during the pandemic.

For China’s Trip.com, formerly known globally as Ctrip, it is trying to diversify away from its over-reliance on transactions, particularly because the hotel discounting frenzy in China, and its dependence on airline ticket sales, lead to sub-par commission levels.

In its fourth quarter and full-year 2020 earnings call earlier this month, Trip.com officials detailed how they are getting into the content business to get a line into airline, hotel and destinations’ advertising budgets.

“We traditionally only made most of our money from commission,” co-founder and Executive Chairman Jianzhang “James” Liang told analysts during the earnings presentation. “So it’s really coming out of the sales budgets of airlines and destinations and hotels. Of course, as we know, they also have a marketing budget and branding budget, probably just as large and the same order magnitude, and it’s just as large as the sales budget. So this is the area that we hope to, through our marketing and platform and our content capability, be able to tap into in the near future.”

He said focusing on content creation and travel inspiration will attract new customers for Trip.com Group, entice them to engage more frequently, and spend more time on the brands’ apps, which are seeing increased spending in domestic packages, for example.

GETTING INTO CONTENT CREATION AND ADVERTISING

The move into content creation and the goal of creating advertising revenue comes after Trip.com Group entered into a joint venture with Massachusetts-headquartered Tripadvisor in late 2019 to share content on their respective platforms. Trip.com Group CEO Jie “Jane” Sun now has a Tripadvisor board position.

Tripadvisor, of course, has long brought in the majority of its revenue from advertising/media, as opposed to transactions. Advertising is a relatively high-margin business compared with transactions.

We are not alleging that Tripadvisor is somehow directing or teaching Trip.com Group the content business. This isn’t a situation of an all-knowing fair-haired Western business teaching a Chinese enterprise, which was founded in 1999 and even prior to Tripadvisor, a thing or two about the travel business.

There are plenty of logical reasons for Trip.com Group to get into the advertising business, and ways to learn about it. There may be many homegrown advertising models in China. Expedia Group, too, has long had an active media solutions business.

But it wouldn’t be surprising for Trip.com Group, given its new strategic partnership, to compare notes with Tripadvisor on its longstanding experience in the advertising arena.

ADDRESSING WEAKNESSES

Here are some of the problems that China’s largest travel agency, which has its online platform but also operates thousands of stores, particularly in lower-tier cities, is addressing with its move into the advertising business:

Skift’s Deep Dive Into Trip.com Group 2020 cited the fact that In May 2017, Trip.com Group disclosed that its net take rate on hotels because of couponing, or discounting, was relatively small at 8-10 percent. The company also has a dependence on flights, which is a great source for new customers, but provides low commissions.

Fast-forward to 2020, and you can see from the chart below that although Trip.com Group greatly outpaced Expedia Group and Booking Holdings in gross bookings, or the total value of travel goods sold, it lagged in revenue despite the relatively robust nature of China’s Covid travel recovery compared with the United States and Europe.

In fact, Trip.com Group attracted $61 billion in gross bookings in 2020 compared with $36.8 billion at Expedia Group and $35.4 billion at Booking Holdings.

Skift Research’s deep dive into Trip.com Group, which used data as of October 28, 2020, found that Booking Holdings’ take rate, or commission levels, were the highest at 16 percent, Expedia Group generated 11 percent, and Trip.com Group lagged considerably at 4 percent. Hotel commission levels in China are generally much lower than they are in North America or Europe.

So it is likely a smart move for Trip.com Group to address some of these take rate and margin weaknesses by entering the content and advertising business.

Sun explained during the earnings call that many Trip.com users already write reviews and travel journals on its platform, arguing that its “strong product and transaction capability allows to make content-to-transaction conversion easy and frictionless.”

Said Sun: “For example, our livestream channels delivered the highest conversion rate in travel industry last year. So for these reasons, we are confident to see that we will be one of the go-to platforms for users that seek both travel inspirations and values for care in the short-haul and long-haul travel demand.”

So it is likely a smart move for Trip.com Group to address some of these take rate and margin weaknesses by entering the content and advertising business.

Sun explained during the earnings call that many Trip.com users already write reviews and travel journals on its platform, arguing that its “strong product and transaction capability allows to make content-to-transaction conversion easy and frictionless.”

Said Sun: “For example, our livestream channels delivered the highest conversion rate in travel industry last year. So for these reasons, we are confident to see that we will be one of the go-to platforms for users that seek both travel inspirations and values for care in the short-haul and long-haul travel demand.”
宁波南苑环球酒店编辑整理

上一篇: 新西兰拟宣布与澳大利亚免隔离旅行安排

下一篇: 上海新地标J酒店开业,本土品牌接力“全球最高酒店”

返回

宁波南苑环球酒店交通指南

【周边交通】
- 距离宁波栎社机场8公里,乘坐机场大巴至华茂外国语学校下,步行至饭店约1分钟,打车约20分钟约25元。
- 距离宁波客运中心站6公里,乘坐公交368路或109路至鄞州二院站下,步行至饭店约2分钟,打车约30分钟约25元。
- 距离宁波汽车南站6公里,乘坐公交368路至鄞州二院站下车,步行至饭店约2分钟,打车约30分钟约25元。
- 距离宁波汽车东站8.5公里,乘坐公交127路至鄞州二院站下,步行至饭店约2分钟,打车约25分钟。 【周边办公及百货大楼】
- 距离鄞州区政府约2200米
- 距离鄞州区行政服务中心约2500米
- 距离鄞州体育馆约2400米
- 距离中国农业银行1600米
- 距离中国银行2200米
- 距离中国建设银行2500米
- 距离中国工商银行2000米
- 距离银泰百货、利时百货1600米
- 距离南部商务区2000米
- 距离万达广场1700米 【周边景点】
- 距离鄞州公园3.1公里,步行仅15分钟
- 距离鄞州博物馆2.8公里,步行仅10分钟
- 距离鄞州科技馆1.5公里,步行仅5分钟
- 距离东钱湖风景区约13公里,打车约20分钟/33元
- 距离天宫庄园约5公里,打车约13分钟/16元 【周边美食及娱乐】
- 距离水街餐饮一条街,大约2公里,步行约12分钟
- 距离天源巷小吃夜宵摊(东苑食府、原始部落等)300公里,步行约3分钟
- 距离万达广场餐饮区域(万达石浦大酒店、李智记、风云肥牛小火锅等)1.7公里,步行约5分钟。
- 距离老外滩8.8公里,25分钟的车程,打车23元。
- 距离舟宿夜江约5公里,15分钟的车程,打车15元。
- 距离钱湖会所KTV、天御古典足浴1.4公里米,打车15元。
- 距离万达大歌星KTV、神采飞扬游乐园1.7公里,步行约5分钟。
- 距离飞越广场演艺吧约5.8公里,15分钟车程,打车17元。 【公交指南】 公交鄞州二院站下可乘坐:101、107、108、109、159、363、368、627、660、668、690、902

所属商业区:鄞州商业区
酒店区域:鄞州区
酒店地址: 浙江省 · 宁波 · 鄞州区 · 鄞县大道1288号

宁波南苑环球酒店预订电话:020-86009099 (优惠券:10852) (忙线或无人接听时,请在线预订 !)
其他咨询:0574-82809999 (交通、订餐、会议、桑拿娱乐、发票开具、物品遗失等)  会议室在线预订

宁波南苑环球酒店地址:浙江省 · 宁波 · 鄞州区 · 鄞县大道1288号 

宁波南苑环球酒店Nanyuan Universe Deluxe Hotel 站点地图 关于我们

免责声明:我们是携程(含同程艺龙,去哪、住哪等)、Booking、Agoda、Expedia的合作伙伴, 仅为您提供宁波南苑环球酒店网络预订服务, 您的订单将由携程、同程艺龙等合作伙伴转发给酒店,如果涉及到违约金等问题,由同程艺龙或携程扣款转交给酒店, 我们并非宁波南苑环球酒店的官方网站,请您知晓。