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Big Traffic Author of this article: Zhang Haibin 2017-08-16
Transparent business travel means that decision-makers allocate benefits,A simple summary is that if the service provider earns product commissions, it is not transparent,If you are earning service fees, it is transparent,The process of transforming from opaque business travel to transparent business travel is the process of service upgrade。
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Business travel is referred to as business travel,As the name suggests,Refers to travelers for official or business purposes,To attend the meeting、Exhibition、Cultural and sports activities、Relying on handling organizational affairs,Consumption activities of travel products and services triggered by 13203_13220。

Since it is for official or business purposes,It can be divided into two dimensions in form: from the decision-making mechanism, it is divided into personal business travel and corporate business travel;From the service level, it can be divided into opaque business travel and transparent business travel。Individual business travel means that the enterprise does not have unified management,Individuals choose their own travel service providers、Book by yourself、Pay by yourself and then reimburse, etc.;Unified management of enterprise business travel information,Enterprise designated service provider、Unified booking、Unified settlement, etc.,The transformation from personal business travel to corporate business travel is the process 188bet app download of management upgrading;Opacity in business travel means that business travel decision-makers are unclear about the distribution of interests in their respective business travel service processes,188bet sports betting app download

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For an explanation of the business travel upgrade model, see:

OTA is a typical personal opaque business trip。Travel decision-makers make personal decisions on the purchase of travel products,But although the service is free through OTA,But corresponding commissions will be charged to upstream merchants,The amount of commission and how to distribute it are beyond the control of decision-makers。

MTS is a typical personal transparent business travel。Travel decision-makers make personal decisions on the purchase of travel products,But MTS provides housekeeping service in the purchasing mode,From an operational perspective, it is a profit model of full rebate of upstream commissions + collection of membership fees,The amount and distribution of commissions and membership fees are at the discretion of the decision-maker。

Ticket agency is a typical corporate opaque business trip。Unify for corporate booking、Service、Advance Fund,But you still earn air ticket commission、Refund and change fees、Income from insurance commissions and other items,Completed the management upgrade of unified management,But the transparent service upgrade has not been completed。

TMC is a typical corporate transparent business travel。Completed the management upgrade of unified management from left to right,Completed bottom-up transparent service upgrade,Relatively stable state。

Current situation of China’s business travel industry:

Personal business travel is the mainstream。From various statistical data,The penetration rate under unified management 188bet online sports betting is less than 20%;From the financial report data released by Ctrip,Business travel management business accounts for less than 3% of total revenue。

Opaque business travel is the mainstream。The proportion of business travel companies that truly serve the net price + service fee model is not high,MTS is an emerging model,It has not become mainstream in personal business travel;The true TMC has developed over more than ten years,It only covers some foreign-funded enterprises and state-owned large and medium-sized enterprises,It has not become mainstream in enterprise-level business travel。

The road to upgrading China’s business travel industry: Transparency is a must but management cannot be expected。

Enterprise-level business travel is not expected.

Whether personal business travel will definitely undergo management upgrade and then be transferred to enterprise-level business travel,To be managed uniformly by the enterprise itself、Standardized management、Influence of demand-side factors such as decision-making awareness,At the same time, it must also be subject to the service level of the business travel company、Marketing ability、Influence of supply-side factors such as tool efficiency,So,Business travel management upgrade from individuals to enterprises,No matter the conversion scale、Rhythm、Period,There is great uncertainty,So,The upgrade of business travel management is a behavior that is in line with the trend but cannot be expected in the short term;

Transparent business travel is a must.

In the relatively niche enterprise-level business travel,Transforming from an opaque business travel agency to a transparent business travel TMC,This has become the main theme in the air ticket agency 188bet Online Sports Betting and Casino industry in the past two years,With the implementation of the airline’s direct downgrade policy、Competitive pressure on technology and resources of large OTA platforms、Enterprise customers’ demands for transparent upgrades,This has led to a strong willingness of traditional ticket agents to upgrade their services to TMC,As for the path and cycle of conversion,It still requires cooperation between the upstream and downstream of the industry chain to have a chance to be completed。

In an absolutely popular personal-level business trip,The current mainstream service model is still OTA,But this personal opaque business travel e-commerce model,It is bound to be impacted by the purchasing model of MTS,MTS earns transparent service fees,OTA earns opaque agency commission fees;MTS is a cost-based service pricing rule,OTA is an e-commerce pricing rule based on revenue;The main customer group targeted by MTS is high-frequency business travelers,The commission income of these people is far greater than the service cost invested in them,OTA targets all categories of customers,Reducing costs through scale and mobile Internet tools;MTS only produces standardized business travel products,Can reduce R&D costs and service costs,OTA provides one-stop all-category travel products,Meet the service needs of its full range of customer groups;MTS pleases travelers with full commission rebates,Responsible for transparency for travelers;OTA squeezes the upstream supplier commission rate through unlimited、Setting up consumption traps for downstream travelers without a bottom line,GMV brought by downstream travelers*commission rate of upstream suppliers,To obtain high commission income,Responsible to the capital market。So,188bet app download Based on standard products、Using mobile Internet as a tool、Transparent MTS model for personal business travel that serves high-frequency individual business travelers with full commission rebate plus membership fee model,It is bound to have a certain diversion effect on the opaque OTA model of personal business travel that relies on agency commissions as its profit point。

Summary,Business travel is divided into individual-level business travel and corporate-level business travel、Transparent business travel and opaque business travel are divided into four quadrants,From left to right is the management upgrade from personal level to enterprise level,In line with the trend but unpredictable;Bottom-up is a service upgrade from opacity to transparency,In line with the trend and bound to be available,The upgrade of ticket agency to TMC in niche enterprise-level business travel has begun to take shape,The OTA to MTS upgrade in mass personal business travel is about to explode,Let’s wait and see。

*Source of this article: WeChat public account "Miyou Zhang Haibin", original title: "The road to transparent business travel upgrade—transparency is a must but management is unpredictable

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