Airlines want to get rid of homogeneous competition in air tickets,Start switching to online 188bet online sports betting

Author of this article: Li Xiangwei 2015-08-26
Price war is an unavoidable phenomenon in the competition of highly homogeneous aviation products,Seeking breakthroughs in the future,Aviation companies begin to seek differentiated competition methods,Moving to the online 188bet online sports betting industry is becoming an important choice for airline companies。

With the opening of high-speed rails across China,Relaxation of aviation regulations,A large number of private 188bet online sports betting and low-cost 188bet online sports betting have entered the aviation market,Competition in China’s aviation market is gradually intensifying。Although,The aviation market has developed rapidly in recent years,But 188bet online sports betting will inevitably encounter the "baptism" of price wars,Price war is an important feature of the brutal growth period of homogeneous competition,The highly networked aviation industry is a hot spot for price wars。

The relatively mature way for China’s e-commerce companies to deal with 188bet online sports betting wars is to develop together: “The giants have begun to reflect on the competition model of 188bet online sports betting wars,Choose instead to join forces to increase profit margins,Business oligarchs participate in shares、Holding、After completing the initial business clearance and market accumulation through a series of means such as mergers and acquisitions,Business will enter a period of stable growth with oligarchic collusion。”For example, the merger of Didi and Kuaidi,Ali and Suning’s “flash marriage”,JD.com and Tencent hold hands, etc.。But in the early stage of the conspiracy, it must be cleared through a 188bet online sports betting war,The remaining business forces after the big wave washed away the sand,Only those who are qualified to participate in joint development。188bet online sports betting war is an unavoidable phenomenon in the competition of highly homogeneous aviation products。

Market competition in the aviation industry is based on routes as the basic unit,When making flight plans from scheduled flight capacity,Competition among 188bet online sports betting has already begun。Routes are mainly divided into monopoly routes and open routes。Monopoly routes have relatively sufficient passenger sources,High route revenue,Stable competitive environment,But with the rapid development of civil aviation capacity,Part of the airspace is saturated,It has been difficult to apply for new flight times at several major airports。In the context of the surge in capacity, open routes,The homogeneous competition is very fierce。Homogeneous competition is very cruel,When the market is not yet saturated,Homogeneous competition is carve-up competition,You have more or I have less,Neither will endanger the other's survival。But,Once the market enters a relatively saturated state,Homogeneous competition becomes a kind of substitution competition,A kind of competition with you but not me。

At present, the target customer base of airlines is still mainly individual passengers,The characteristics of individual passengers are: passengers have the need to 188bet online sports betting,Check air tickets,Shop around to choose air tickets。One of the most typical characteristics of individual tourists is that they generate their own 188bet online sports betting needs,Individual travelers may choose different 188bet online sports betting methods due to 188bet online sports betting costs,But air ticket prices are not the main factor stimulating individual 188bet online sports betting。In addition, passengers in the airline industry have long been accustomed to ups and downs in prices,Price reduction within a certain range does not significantly stimulate passengers,Unless the air ticket price drops enough to be able to PK bus tickets、Price of train ticket。But when ticket prices drop to this level, airlines have to face the dilemma of low profits or even losses。Therefore,The industry’s collective price reduction does not significantly stimulate individual customers。

How do aviation companies stand out in the homogeneous 188bet online sports betting?

There are two main types of market competition: 188bet online sports betting competition and non-188bet online sports betting competition。188bet online sports betting competition has its conditions and basis for its existence,Such as supply and demand、Product Substitutability、188bet online sports betting elasticity and market type, etc.,188bet online sports betting competition takes the form of 188bet online sports betting reduction and competitive sales,It is inevitable for the development of market economy,In the imperfect stage of China’s market economy,188bet online sports betting competition and non-188bet online sports betting competition coexist at the same time。At present, aviation products are still surrounded by homogeneous competition,188bet online sports betting competition is the main theme。Revenue management in the aviation industry is mainly achieved through 188bet online sports betting discrimination。The floating ticket 188bet online sports betting mechanism causes aviation products to be deeply affected by the crab effect in market competition。

Under the crab effect,Price reduction cannot make 188bet online sports betting stand out in a circle of homogeneous competition,In a relatively saturated market,Unilateral price increases may turn into contrasting advertising,Unilateral price cuts will almost certainly trigger a price war in the industry。The purpose of price reduction is to stimulate customer base,Increase attendance。

But today with the rapid development of information technology,It is likely that the price has just been reduced,The target customer group has not yet received this good news,Competitors have lowered their prices to be the same or even lower。Prices between 188bet online sports betting have entered a new stalemate or equilibrium state,188bet online sports betting that cut prices failed to capture customers and increase revenue,On the contrary, it lowered the ticket price again,Resulting in a decline in revenue。

And similar price cuts in response to competitor price cuts,Usually the beginning of a vicious cycle of price cuts,Because competitors will try to maintain the original price difference。And the longer 188bet online sports betting stay in the low-price slump,The more serious the loss of income,The process of getting out of the low-price depression is also full of difficulties and obstacles,Because flight sales progress is different between different 188bet online sports betting,Different 188bet online sports betting have different confidence in the aviation market,In the end, it is difficult for 188bet online sports betting to reach a tacit agreement to raise prices together,And this difficulty gradually deepens as the number of 188bet online sports betting on the route increases。Currently,There is no efficient price communication mechanism between 188bet online sports betting。

“188bet online sports betting competition is mainly in the form of 188bet online sports betting reduction competition,It is inevitable for the development of market economy”,For an airline,The ideal 188bet online sports betting competition model should be differentiated sales。A simple way to express differentiated sales is 188bet online sports betting difference selling,The key condition for 188bet online sports betting difference selling is that your competitors can tolerate you maintaining the 188bet online sports betting difference for sales。There are opportunities for this kind of price difference sales to be realized on monopoly routes,When its own transportation capacity has a small share of transportation capacity in a monopoly route,Because of long-term price war, the income of monopoly and oligopoly will drop significantly,In order to increase overall profits,Will allow 188bet online sports betting with smaller capacity shares to conduct free price difference sales (for details, see the article "Small Data Series: Domestic Route Competitive Strategies Are Just a Thing",Because the conditions of this route are harsh,The scope of application is limited and will not be discussed here)

Another way to express differentiated sales is to blur the ticket 188bet online sports betting,Diversified self-owned channels。Product in progress、188bet online sports betting context of highly homogeneous prices,Channel construction and management have become the key points for enterprises to exert their efforts。Diversified direct sales、Distribution channels keep pace with each other,In order to make the airline marketing system more sound and dynamic。

We know that the secret of Spring Airlines’ success is not its cheap fares,It is a model of bundled development with Spring and Autumn 188bet online sports betting Agency。Chunqiu 188bet online sports betting Agency was established in 1981,Where does the tourist route go,Wherever the plane flies。It is reported,2005 when Spring Airlines first started flying,More than 70% of the seats are directly supplied to Spring 188bet online sports betting Agency。Today,This ratio is just the other way around: 30% goes to the 188bet online sports betting agency,70% retail。Data display,The four major domestic airlines (Air China、China Eastern Airlines、China Southern Airlines、Hainan Airlines) The average passenger load factor disclosed in the annual financial statements is around 70%-80%,Spring Airlines’ passenger load factor is over 95%。

Spring Airlines’ data is very interesting,“30% goes to the 188bet online sports betting agency,70% retail” Spring Airlines actually only needs to sell 70% of flight seats on the retail side,Judging from “the average passenger load factor of the four major domestic airlines is around 70%-80%”,It is not difficult for Spring Airlines to achieve 70% seat sales at the retail end,Even the sales difficulty is slightly easier than that of the four major airlines。

The core of this sales model is that 188bet online sports betting agencies blur the selling price of air tickets by packaging them into 188bet online sports betting products。The target customer group of 188bet online sports betting products is leisure travelers (the target customer group of airlines is divided into a small range),A large proportion of leisure travelers prefer one-stop service 188bet online sports betting itineraries,Chunqiu 188bet online sports betting Agency conducts targeted sales for this group of passengers,So as to avoid the pursuit of homogeneous competition。

In addition, Spring 188bet online sports betting Agency, as Spring Airlines’ own channel, provides Spring Airlines with broad strategic depth space,Leisure travelers are generally more sensitive to price than 188bet online sports betting time。Chunqiu 188bet online sports betting Agency lowers ticket prices implicitly,To improve the competitiveness of tourism products。Because airlines cannot have a clear understanding of packaged 188bet online sports betting products,Therefore there is little potential for backlash from competitors in the aviation industry。

For example, when the market price of a certain route is stuck at around 50% off,If Spring Airlines directly reduces the sales at the retail end by 10% off,It will definitely cause competitors to follow up,The effect of increasing flight seats is not obvious。If Spring Airlines lowers the price of air tickets for 188bet online sports betting agencies to 40% off,In the end, Spring Airlines achieved a hidden price reduction in ticket sales by packaging 188bet online sports betting products and blurring ticket prices,Obtained price difference sales opportunity。

Air tickets are the bulk of tourism products,188bet online sports betting agencies usually choose relatively favorable prices,When the market price on the route is stable at 50% off,If the 188bet online sports betting agency prices the 188bet online sports betting product to 1,000 yuan, it can maintain capital,So if Spring Airlines prices this 188bet online sports betting product to 1,000 or even 800, Spring Airlines’ profits will still be considerable。Because the profit included in the ticket also belongs to Spring Airlines。The price advantage of 188bet online sports betting products makes Spring Airlines’ 188bet online sports betting products more competitive in the tourism industry。

The aviation industry disrupts the online 188bet online sports betting market

Traditional tourism is naturally suitable for multi-level distribution,A bearer at the end gets scale,The following are various channels,Relatively complex to manage。Traditional enterprises are usually unable to complete business expansion due to the constraints of their business philosophy and the limitations of their original business sector interests。But,China’s tourism industry is developing rapidly,The group tour business that traditional 188bet online sports betting agencies rely on for their survival and development,Beginning to be severely impacted,Tourists will have higher requirements for personalized 188bet online sports betting product design。

According to industry statistics,The market capacity of the traditional tourism industry is approximately more than 300 billion,The penetration rate of 188bet online sports betting tourism is very low,Only about 12% in 2014,Penetration rate in 2013 was 8%,This also shows that the penetration rate is accelerating。According to development trends,Traditional tourism must shift to online tourism,Tourism consumption itself is also growing,The market size is very large,2 launched by the country in a timely manner.The 5-day holiday is even more good news for air 188bet online sports betting。Online 188bet online sports betting,Ctrip and Qunar have taken the lead,New websites such as Lvmama and Tuniu are also catching up later。

More and more entrepreneurs and capital are flowing into the online 188bet online sports betting market。But behind the flowers,A large number of losers are also emerging。According to incomplete market statistics,From 2011 to 2014,At least 13 online 188bet online sports betting projects have been closed。Industry insiders generally believe that,Most of the reasons for the failure of these models are the lack of profit points,Many 188bet online sports betting services are free to use,Companies can hardly achieve profit targets。“Some apps or websites have short-term traffic surges,But in fact it is difficult to maintain for a long time。”

“Internet+” is the mainstream model of business development today,“Internet +” means “Internet + various traditional industries”,But this is not a simple addition of the two,Instead, use information and communication technology and Internet platforms,Let the Internet deeply integrate with traditional industries,Create a new development ecology。If this "new development ecology" is controlled by Internet companies,Internet companies must find their own profit points,The most fundamental thing about the Internet is to break down the original information barriers,Eliminate information asymmetry,The model for merchants to make money by taking advantage of information asymmetry is disintegrating。The currently more successful Internet companies are basically platform-based business models,Tmall itself neither manufactures nor purchases,But because of its openness,You can buy almost all products on its platform,Thus attracting hundreds of millions of consumers;It is precisely because of such a large consumer group,In turn, it attracts hundreds of thousands of merchants to open stores on this platform。

Internet industry,User is King,Platform enterprises use their “close to users” status to formulate 188bet online sports betting rules for merchants on the platform,This 188bet online sports betting model formulated by the platform contains the profit points of platform enterprises。For example: Taobao’s bidding ranking、Qunar and Ctrip directly take advantage of their scale to collect commissions, etc.。Online tourism led by Internet companies relies heavily on the scale of platform users,Only when user traffic is large enough,Online tourism led by Internet companies can gain sufficient say in the tourism industry chain,The Internet has natural expansion and monopoly properties。On the one hand, the post-monopoly Internet forces companies to bid by creating a homogeneous competitive environment,On the one hand, use the platform or bidding model to collect commissions。

Although “Internet+” is a big trend,But there is still the question of who is in charge。The new development ecology of Internet + tourism may not necessarily be dominated by Internet companies,Airlines also have great potential to dominate online 188bet online sports betting,And airline-led online 188bet online sports betting has solved the problem of profit model since its establishment,This kind of online tourism’s pursuit of traffic and capital is more rational,Able to optimize resource allocation。Of course this kind of online 188bet online sports betting is tourism consumption in the true sense,Instead of the e-commerce that airlines are doing now。

The advantages of airlines dominating online 188bet online sports betting

First,The profit model has been well solved,Airlines control the hard currency of flight seats,Facing the dilemma of being unable to break through in the individual passenger market,Investing in online 188bet online sports betting will undoubtedly inject new vitality into airlines。And the profit model is very clear,Flight seat sales-oriented,Online 188bet online sports betting mode is used。Profit comes from flight seat sales。

Second,The online tourism industry led by airline companies has a broader strategic depth space,When competition for aviation products at the retail end is fierce,Airlines can increase passenger capacity by implicitly lowering fares and packaging them into 188bet online sports betting products,Acquire high overall passenger seats on flights by opening a second battlefield,Achieve high passenger capacity on flights。

Third,Transfer part of the 188bet online sports betting of homogeneous aviation products to the online tourism industry,Digest flight seats by stimulating tourism development,Thus gradually making the cake of air transportation bigger,And this pattern is consistent with “Who Invests,The fundamental principle of “who benefits”,An airline launches cost-effective 188bet online sports betting products by implicitly lowering fares,This 188bet online sports betting product attracts leisure travelers to buy,Not only make the market pie of the entire industry bigger,And the bigger part of the cake is captured by the airline,Thus the airline is willing to use this model again to obtain high passenger numbers,Instead of risking a price war and cutting prices alone in the retail market。

Fourth,Online 188bet online sports betting led by airline companies is a diversified self-owned marketing channel in the development process of airline companies,The construction of self-owned channels has stronger fault tolerance and risk resistance。Online 188bet online sports betting led by airline companies can compete with first-line online 188bet online sports betting platforms,Withdrawal can maintain a certain customer scale,Located in a corner。

Airlines dominate the business model of online 188bet online sports betting

The most mature airline currently involved in "Internet + tourism" is Spring Airlines,Of course, the reference significance of Spring Airlines is not that the airline should open a 188bet online sports betting agency of its own, but that it relies on the airline's official website to build an online 188bet online sports betting platform (currently domestic website technology is quite mature)。The entire 188bet online sports betting process is developed by airlines based on their own route layout,Customized 188bet online sports betting products,Responsible for completing air transportation,Package car service to Didi Taxi or 188bet online sports betting agency,Package group tour products to local 188bet online sports betting agencies。

Airlines usually set up branches or sales departments in cities where major routes intersect,And traditional business settings have dedicated channel management,Used to control local agents and 188bet online sports betting agencies。Airlines enter online 188bet online sports betting,In the physical business, it can even be regarded as a smooth upgrade of airline channel management,More challenges for airlines seem to be communication mechanism management and 188bet online sports betting product page display issues。

During the entire 188bet online sports betting process,Airlines have gained the status closest to users,The era when users are king,The position closest to users means dominance in market competition,Thus, airlines will naturally have the same rule-making and judicial power as Taobao。Airlines can not only further strengthen their control over marketing channels by using their rule-making and jurisdictional powers,At the same time, it can standardize tourism management,Travellers’ accidents or comments, complaints or suggestions that occurred during the trip,Airlines have first-hand contact with user needs to develop products,And punish violations during the tourism process in accordance with the established rules,Regulate insufficient behavior,Standardize the differences,Thus guiding the healthy growth of the tourism industry。

188bet online sports betting focuses on experience,The loyalty of tourist users is higher than that of individual tourists。Online 188bet online sports betting should be an important part of the construction of aviation’s own channels。

Conclusion: Airlines do online 188bet online sports betting,Spring Airlines is a relatively mature model,The worry-free 188bet online sports betting and independent 188bet online sports betting on Air China’s official website should be regarded as prototypes。Airlines should be just one step away from truly entering online 188bet online sports betting on a large scale。

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