Tuniu HNA march hand in hand into the outbound market

Currently, the way cattle are accumulated overseas market forces in order to strengthen its play baby games direct sourcing strategy. In addition, the way cattle also launched an open platform model airfare and hotel business. Chinese online travel distributors how to enhance its profitability? OTA how best to be a huge cash flow? Is not all transactions are done online? These are China's major OTA executives said in an interview frequently asked questions. To seize the initiative Tuniu the CFO Yang Jiahong said that as online leisure travel industry leader, in every way cattle are becoming increasingly skillful. Tuniu CFO Yang Jiahong First of all, the way cattle is currently developing new business and tourism products packaged core business-related, such as airfare, hotel, online banking, etc., this product strategy is different from other OTA. . Tuniu in its core business - packaging have a competitive advantage on tourism products, tourist routes selection, pricing to customers of all travel arrangements is the company's expertise lies. Recently, a lot of complaints from tourists OTA poor quality of service, and even suppliers of goods and take some irregularities operations, such as in terms of ticket back Meal, and called himself the way cattle customer "feedback satisfaction are high." From the performance point of view, the way cattle stressed that the company's current growth rate has exceeded the other OTA. Net income for the third quarter was 30 billion yuan, up 127.5 percent year on year growth. More importantly, in order to cash the digital traffic on the platform, while meeting the needs of users, the way cattle also offers air tickets, hotel reservations, car rental, bus tickets and other products. These products are currently just launched soon contribute to the company's growth is not great, or 70% of turnover by product realization with the tour group, and the remaining 30% comes from Tours. Last month, it announced that it will build a road ox tickets open platform for third-party distributors and thus open the door to sell tickets on the way cattle platform. At the same time, the way cattle is also using an open platform model, this year will expand hotel business in this mode, accelerate the growth of hotel coverage, expand the scale of the hotel product. As Yang Jiahong said, whether it is to improve the overall GMV, strengthen or outbound goods or strengthen direct sourcing strategy, the way cattle are ready to strive to enhance the competitiveness of the price. Outbound travel market a showdown One area between OTA competition is fierce contention outbound travel market. Turning Tuniu plan in this regard, Yang Jiahong said, the company plans to set up in 2016 to enhance the 15-20 service centers overseas destinations. This is an extension of the domestic departure area service center strategy, and a large traffic is the key to solving the problem. In recent years, the way cattle have been concerned about obtaining tickets resources, hoping to build better links between the company's 240 departure city and 150 destination countries. Yang Jiahong said: "We have just formed a strategic alliance with Hainan Airlines (HNA Tourism has just completed an investment of 500 million US dollars in the way cattle), which will ensure that we are still able to cope with the problem of shortage of flights during the peak season can provide HNA's for us. Grand China Airlines, Hainan Airlines, Tianjin Airlines, Lucky Air and west Air and other airlines stock. in addition, HNA Group also operates the hotel business, but also plans to get involved in the field of tourism resorts, so long as we build play baby games capacity in this regard it is possible with overseas suppliers better cooperation. " After developing a partnership program with the overseas tourist destinations, the way cattle current plan is to strengthen partnerships with local suppliers in these countries (including hotels, distributors and wholesalers) of. "By 2015, the way cattle are not diplomatic team, but to expand overseas team enables us to offer the best products for the Chinese outbound tourism travelers." Yang Jiahong mentioned that in order to improve efficiency and ensure higher profits, will also focus Follow the hotel's direct mining. He added that the way cattle will participate in the world's largest tourism exhibition ITB Berlin, looking for potential suppliers worldwide. "ITB in line with our direct sourcing strategy, because this show can make you a better attention to our program, where we can meet the right partner." Maintain growth momentum Over the past few years, the mobile terminal traffic transit of cattle has been a substantial growth in trading volume through mobile sites and App completed has increased significantly. This is on the financial results also reflected. Yang Jiahong said: "Our core business is leisure travel, online financial service is a great complement to this moment, we offer a range of financial products and services to customers and suppliers." These financial services can encourage users to travel , while supporting the development of suppliers, so the introduction of financial services for the purpose to the overall development of Chinese leisure travel market to provide systematic support. Yang Jiahong also said, "the financial services we provide to our customers and suppliers together, the last three quarters of total turnover growth of 200% or more to maintain, in October 2015 turnover of over 1 billion yuan." Yang Jiahong also adds scale electricity provider in the field of tourism is also very small, accounting for only 10-12% of the entire industry. Tuniu said the company accounts for online leisure travel market share is considerable. Over the past few quarters, the way cattle market share has increased significantly. Third-party research firm Analysys think tank (Analysys) the latest data show that the fourth quarter of 2015, accounting for online leisure travel way cattle market share reached 26.2%, ranking first in the industry. Main achievement: 1. Health online channel mix: Tuniu only sell their products through online channels. Tuniu establishment of regional service centers across the country, is rapidly increasing its influence in the low line-level cities. The role of these centers is to help eligible customer, and localized products. The revenue contribution of these regional centers are becoming increasingly apparent. Yang Jiahong said: "in 2014 we built a 58 regional service centers, the third quarter of 2015, these centers account GMV proportion is 17%, up 11 percent In addition, the third quarter of 2015, second and third tier cities. GMV contribution rate for the first time more than first-tier cities, which indicates that we will focus on the strategic line of low-level cities have been successful. " Early 2014, the mobile terminal traffic and orders are accounted for around 20%. But just two years time, the mobile orders soared to 70%, and the remaining 30% is done on the PC side. "With the mobile side booked proportion rising in the past few years, our conversion rate also rose from 1% to 2%, but 30% of transactions completed by the PC side is also essential, because shopping is becoming the norm across the screen , especially considering the amount of information packaged tourism products contain is quite large, so, PC side is still an important channel. "Yang Jiahong said, adding that consumers browse on mobile devices with packaged tourism products related to information relatively difficult, but at the conversion rate, the way cattle believe they have play Frozen Games gained more and more experience. 2. direct mining: Yang Jiahong said that at the end of the second quarter of 2015, the way cattle GMV direct mining products accounted for the proportion rose to 25%, while the figure at the end of the third quarter reached 30%. Yang Jiahong added:. "Not only do we cooperate with wholesalers, but also do their own packaging products (packaging airline tickets and other tourism resources, with ground operators to jointly develop tourist routes, etc.), all from our GMV online without any offline business. we use the net mode, so that when customers experience any problems, we can take responsibility and solve problems. "Tuniu improved N-Booking systems (supply chain management systems, web and mobile terminal can Log), supports English interface for suppliers also more friendly interface. Tuniu provide more than 1.45 million pieces packaged tourism product lines (SKU), covering 150 countries and regions. 3. The growth of first-tier cities outside: the third quarter of 2015, the contribution rate of GMV low line-level cities of more than 50%. Yang Jiahong said: "The third quarter of GMV's contribution rate lower than 50% of line-level cities popular with tour groups welcome travelers, in the second, third and fourth tier cities are so.." 4. take advantage of market demand: referred to the recent cooperation with Hainan Airlines, Yang Jiahong stressed that as long as there is demand, you can create new revenue opportunities. "For example, such and HNA Group to ensure we can provide at any time, charter or open up new routes. Outbound ticket is the bottleneck, but once we have overcome these problems, you can continue to open up new destinations, such as Tahiti. "Yang Jiahong said that overall, the proportion of outbound tourism products in GMV in approximately 65-70%.