On May 15, 2015, " hosted by Yiou.com2015 China O2O New Business Summit"held at the National Convention Center in Beijing，The theme of this summit is “Two-way Interaction，Industrial Convergence” was full of guests、More than 50% are directors or above、Mainly traditional transformation enterprises，Yan Haifeng, co-founder and president of Tuniu.com, gave a speech titled "The Next Step of Tourism O2O"，The following is the main content of his speech:

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2.Travel will become a necessity，Consumption frequency and customer unit price are increasing；

3.Deintermediation of the tourism industry chain，Diversified destination services；

4. The more areas there are, the more concentrated retail will be;

5.The more destinations gather，The shorter the supply chain，The easier it is to improve customer service；

6.Travel has the concept of consumption radius，Any industry with the concept of consumption radius will use O2O。

The following is the live speech delivered by Yan Haifeng, co-founder and president of Tuniu.com:

Hello everyone，I see it’s almost time for dinner，I’ll hold on a little tighter，Try to talk more about useful information。

Mr. Huang asked me to talk about the next step of tourism O2O，I later copied Mr. Zeng’s words from China Europe Business School，Standing on the moon and looking at balloons。Travel is the first to be combined with O2O，Ctrip in the early years、Elong，Including until 2006 when we started to start a business and do tourism，It is the earliest combination of online and offline through the Internet。I remember in October 2006，188bet Online Sports Betting and Casino When we started our business in Nanjing，We found that it is not possible to solve travel problems for travel customers simply through the Internet，Later I discovered that you must have an offline experience store，There is an offline service center，I remember starting a nationwide pilot offline experience center in June 2007，I remember opening the first one in Beijing at that time，Later opened in Shanghai，Slowly one after another, we opened 75 last year，Why is this？Travel is a relatively high price per customer，Products with lower frequency，He had a lot of trivial things during the trip，For example, if you go to Europe, you need to apply for various visas，I remember many investors asked me when I was raising funds，What is the number of your call centers?，Why do you want to open an offline experience center？See investors again in the next few years，Read financial report，Listen to Ctrip’s financial report or Yilong’s financial report，No one asks this question anymore，Because everyone understands this concept，This thing is to combine online and offline。For everyone to see，Do you have more points under the line，Is it better to satisfy customer experience。

Last year and the year before that，I have been to many places in China，Conducted research in third, fourth and fifth tier cities，Share it with everyone。

I discovered several things during this process:

First，China’s consumption is upgrading，From my industry perspective，The consumption upgrade in the tourism industry is very obvious。Where is this obvious manifestation？I think this consumption upgrade is mainly due to the birth of wireless Internet，I gave a very simple example，I have a friend who may be in a rural area in my hometown，He posts to Moments every day，My friend went to the United States to buy a Dior bag and posted it on Moments，My classmate from the countryside knows this，Previous consumption process，Maybe he didn’t know about the brand until Dior stores slowly opened in fourth- and fifth-tier cities，Don’t know now，Wireless suddenly opens the gap，Making consumption upgrade faster and faster，Everyone begins to pursue a high-quality life。

The Spring Festival in the 188bet app past two years has been the most touching for me，I spent the Spring Festival in Nanjing for the past two years，I observed five-star hotels in Nanjing，Shangri-La Hotel，The hotel occupancy rate is very high before the first day of the first lunar month to the fifth day of the first lunar month，This has never been done before，Maybe everyone will go out to play after the New Year’s Eve dinner，And everyone is willing to stay in a good hotel。

There are also inbound tourism，Foreigners used to stay in five-star hotels in China，Now Chinese people are starting to live in five-star hotels。Another customer stratification，Tier 1, 2, 3, 4 and 5 cities，We have a branch in Yan'an。We have a branch in Yan'an，Yan’an people particularly like the Maldives，Like to watch the sea，Consumption stratification is also in progress。Third，Brand，Brands like ours in the service industry are very important。If you want to do a large area across the country，Your product is invisible and intangible, the brand is very important，What we sell is not a physical apple、Samsung，Product-oriented，We are service-oriented，Customers pay great attention to the power of your brand when making big decisions。

I think in this process，Travel is slowly becoming a necessity，I summarize the 1970s，Three big items，Watch、Bicycle，80s refrigerator，90s air conditioner，Now，I think travel is slowly becoming a very important necessity，How do I judge whether it is a necessity，I only watch fast-moving goods and some corporate activities，You see, some companies’ prizes are all about travel，The annual meeting prize is travel，Various organizations to go out for fun are also tourism，So travel has become a very important necessity in life now。

I look at this issue from the perspective of tourism, consumption frequency and unit price，Outbound travel has the highest price per passenger，The lowest is catering，The frequency of dining is the highest among food, accommodation, travel, shopping and entertainment，Then movie tickets、Bus ticket、High-speed rail、Air tickets、Accommodation，Surrounding Tour，Domestic and outbound travel，You can tell from the frequency。188bet Online Sports Betting and Casino I have been chatting with colleagues in my company for a while，Is there a high frequency in Chinese business，The price per customer is very high，Later found out，Yes，We can’t do it。For example, arms，Very high frequency，The price per customer is very high，But we can’t do it。Most normal industries are either high customer price and low frequency，We are listed in Hong Kong，Chat with guests，Special customer unit price is particularly low frequency，You can make millions by making one order，But I can’t do many orders in a year，But look at the industrial distribution from this perspective。

From gross profit margin，The further down，The gross profit margin is very high as the frequency decreases，The gross profit margin of outbound tourism is low。

A very big change in the tourism industry and wireless Internet access is deintermediation，The conflict between offline and online merchants is very fierce，Why I think deintermediation is so drastic。

Diversity of destination services。Departure place，Transportation、Destination，Why you have the confidence to expand your starting point，Travel becomes a necessity，You have to do more and more slowly，Maybe there will be about a thousand starting points in the end。Second，Transportation，Pick the people up，You are delivered to your destination，Like Meituan、Dianping including Ctrip、Yi Long，Many of them are working at their destination，Ctrip was the first to work in the destination，Accommodation is the destination，The gross cash profit margin is also the highest。Later Dianping and Meituan started to do catering and gradually expanded to entertainment，The next destination is the tour guide、Attractions、Driver, etc.，Then there are overseas destinations，Just do all the destinations in China。So deintermediate，Diversified services at destination，These will be wirelessly connected to the Internet。

So，For Tuniu，Further expand our area，Why we further expand our region？We studied it，We found that tourism has the concept of consumption radius。If you are from Changzhou，If there is a plane flying to South Korea from Changzhou，He must not be willing to fly from Shanghai. This is a very important thing，188bet online sports betting You need to carry the box，You are not willing to do many things。Products with a consumption radius are basically O2O-oriented in the future，Wireless Internet Change。If you open a small restaurant at the entrance of your community, it has a consumption radius，The consumption radius of your restaurant is next to the community，Consumption radius determines the path of O2O。We believe that tourism is also a consumption radius，It’s just that its consumption radius is compared to the catering industry，Slightly larger than the general entertainment industry，But it is also basically localized。So Tuniu starts an expansion area from the trend，The second one is localization。Because there is a consumption radius，Resource Customer Localization，This is also our tourism to further expand this area and O2O。

What will happen in the future？I look at it from a tourism perspective，The more areas you have，The more concentrated your retail sales，I always feel that，The tourism industry, including the air ticket industry, is increasingly becoming a retail industry，You want to be intermediate，You want to reduce costs，You must have more and more concentrated retail sales，You have more and more areas，Retail is becoming more and more concentrated，From an Internet perspective, only the boss survives，The second child will not survive。Gome and Suning，In their early years, they integrated the industrial chain and focused more and more on retail，Making the circulation process simpler，Get it directly from the manufacturer or，The amount you obtained，The acquisition cost must be getting lower and lower，The larger the area, the more concentrated the retail sales。More and more destinations are gathering，Inside the destination，Tuniu has done a big thing，For example, people from Beijing travel to Sanya，How to do traditional travel agencies，Send the guests there as a group from Shanghai，Tuniu disintermediates through the Internet and wireless Internet，Let’s gather at the destination，You fly to Sanya，You can report on Niu’s tour in Sanya，Tuniu’s customized tour，The more areas you have，You can package more 188bet online sports betting destinations at the destination，Destination collection products，What are the benefits at this time？The advantage is that the supply chain is getting shorter and shorter，You can shorten the supply chain process，Part of the compressed costs is given to the enterprise，Part of it provides customers with better and higher quality products。Because you are close to your destination，Your advantage is your customer service improvement，Your final customer service is at the destination。