Daily topic Ctrip acquired elong online travel market increasingly clear pattern

A5 (www.admin5.com) station network May 25th news, recently the Internet circle and to rival together! On Friday (May 22) Ctrip announced the joint platinum Tao Group and Tencent acquisition of Expedia holdings of 62.4% shares of elong. After the completion of the acquisition, Ctrip in the art dragon, the shareholding proportion will reach 37.6%, become the largest single shareholder of elong. The release of this news also broke the rumors Ctrip and where to merge.

eLong CEO Cui Guangfu said in an internal e-mail, after the completion of the transaction, Ex-pedia will withdraw from the board of directors, Ctrip and other investors appointed new directors and independent directors, the board of directors will enter elong. Cui Guangfu said elong will continue to maintain an independent listing, independent operations, he will continue to serve as eLong CEO.

elong to focus on the hotel business strategy once Ctrip brought tremendous pressure. 2012, eLong weakened the call center development of online trading, the price war and hotel reservation growth rate, while the aging of Ctrip in the price war shilly-shally, heavy reliance on the traditional mode of call center, in the face of the rise of the mobile Internet is even more confused.

to the third quarter of 2013, eLong hotel guest room night volume of about 7 million 700 thousand, while Ctrip this data is about $11 million, the gap between the two sides continue to shrink.

previously, as China’s online travel sector of the first echelon of the main competitors, Ctrip, eLong and where to use their own advantages, with absolute market share ahead of other Online Travel Corporation. However, the competitive relationship between the three has been no development, eventually strife, price war in a way to gain market share.

analysts said, Ctrip and elong business structure is similar, the two merger is difficult to receive 1+1> 2 effect. Ctrip acquired elong, 30% is for the annexation of competitors, expand the scale, reduce friction, reduce costs, improve efficiency of these considerations, the 70% is to prevent elong directly or through Baidu fall where to go.

overwhelmed Ctrip strategic stake elong is not the end of the story. According to a number of investment industry sources, the online travel industry leader Ctrip also faces the choice, what is to continue to adhere to the independent development, or choose to stand in the BAT.

related reading:

Expedia defeated Chinese: elong is too bad

eLong CEO Cui Guangfu: we change the boss, welcome Ctrip!

elong was acquired or just a prelude: Ctrip Ali biography scandal

Ctrip elong shares or stable market competition   Friday share price highs

Ctrip elong or accelerate the integration of the industry   market structure increasingly clear

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