Tongcheng Travel CEO Wu Zhixiang: The 188bet game supply side must make adjustments

Author of this article: Li Jiexue 2016-12-26
Statistics display,The country’s total 188bet game revenue in the first half of 20162.25 trillion yuan,12 year-on-year increase.4%。In terms of promoting employment,National 188bet game Administration estimates,The total number of people directly employed in 188bet game in my country in 2016 was approximately 28.2 million,The total direct and indirect 188bet game employment population is approximately 79.74 million,The comprehensive contribution rate to national employment is 10.25%。

Steady expansion,Becomes the keyword of the year in the 188bet game industry in 2016。

Statistics display,The country’s total 188bet game revenue in the first half of 20162.25 trillion yuan,12 year-on-year increase.4%。In terms of promoting employment,National 188bet game Administration estimates,The total number of people directly employed in 188bet game in my country in 2016 was approximately 28.2 million,The total direct and indirect 188bet game employment population is approximately 79.74 million,The comprehensive contribution rate to national employment is 10.25%。

While continuing to grow at a rapid pace,The entire 188bet game industry is also undergoing profound changes。Following the merger of Ctrip and Qunar.com last year,Several major merger cases have occurred in the 188bet game industry this year;At the same time,Including Tao on the Road、McDull Travel、Juzhai.com、Ji Ya Travel Network、Looking for fun、A large number of travel startups such as Friday Travel Network have disappeared from the market。

In this context,21st Century Business Herald interviewed Mr. Wu Zhixiang, founder and CEO of Tongcheng Travel。This year Tongcheng Travel was included in the 2016 "Top 20 Chinese 188bet game Groups" list released by the China 188bet game Academy and the China 188bet game Association,Ranked 5th。

Integrate online and offline

"21st Century": the past two years,There have been many cases of “online + offline” integration in the 188bet game industry,Many mergers and reorganizations also revolve around this model,Do you think this model is the key to winning in future competition?

Wu Zhixiang: “Integration” is a keyword that runs throughout the year in the 188bet game industry in 2016,Except for the internal integration of several companies,The rise of online industry-wide、The wave of offline integration deserves special attention,Whether it is the integration of online enterprises into offline enterprises,Or the integration of online companies by offline giants,All indicate a major trend: the integration of online and offline。

The integration of online and offline is expected to continue in 2017,“Online + offline + experience” will eventually become a new leisure 188bet game industry form,The improvement of online efficiency and offline service capabilities will become the key to the success or failure of future competition。Therefore,Offline layout is a strategic layout that we must complete。

"21st Century": Tongcheng Travel announced the merger and reorganization of Wanda 188bet game in 2016,In fact, mergers and reorganizations have been the key words in the 188bet game industry in the past two years。Do you think the continuous mergers and integration of the first echelon will make it more difficult for latecomers to enter this industry,Thus bringing the 188bet game industry into the era of oligopoly?

Wu Zhixiang: From a global perspective,Large-scale diversified enterprise groups are the main competitors in the 188bet game market,The rapid increase in concentration is a process that any industry entering the mature stage will go through。

According to the 2016 "Top 20 Chinese 188bet game Groups" list just released by China 188bet game Academy and China 188bet game Association,Ctrip、China 188bet game Group、HNA 188bet game、Jinjiang International、Tongcheng Travel becomes one of the top five enterprise groups in China’s 188bet game industry,Basically, these five major groups have experienced major mergers and reorganizations or investment and financing events in the past 1 to 2 years,And thus stand out in terms of scale of operations。

Despite the continuous mergers and integrations of the first echelon,Individual companies account for a higher share in certain segments,But the overall share is far from reaching the level of oligopoly,In 2016, the total revenue of the "Top 20 China 188bet game Groups" exceeded 1 trillion for the first time,Accounting for less than 30% of the total industry revenue (the total 188bet game revenue in 2016 is expected to exceed 4.5 trillion yuan)。Currently,my country’s 188bet game consumption is in a period of upgrading,The boundaries of the 188bet game service industry are constantly expanding,As a result, the industrial chain is getting longer and longer,There are still opportunities for new entrants。

Consumption upgrade should pay attention to user needs

"21st Century": In the 188bet game industry,Do you clearly feel the change of consumption upgrade?Upgrading for consumption,What innovations and improvements can be made in business?

Wu Zhixiang: Consumption upgrade is a major change currently taking place in the 188bet game industry,And is becoming an important force in promoting changes in the industry。

Consumption upgrade in the 188bet game industry is mainly reflected in two aspects,First, consumers’ requirements for 188bet game service quality are rapidly increasing,In-depth tour、Quality Tour、Demand for personalized travel and other services is rising rapidly;On the other hand,Differentiated needs drive rapid growth in market segments,Such as middle-aged and elderly people traveling、Travel Photography Honeymoon Tour、Study Tour、Medical and Health 188bet game、Family-child tour、Cruise 188bet game and other market segments are growing rapidly this year。

Upgrading for consumption,The most important thing is to change the business thinking,Change the focus from products to users,Pay attention to the special needs of different segments,And provide targeted 188bet game products and services,Do not stick to the existing product and service system,Adjust product structure around the needs of different users,This is also the final foothold of the current industry-wide supply-side reform。

"21st Century": According to calculations by Fosun Group,By 2020, China’s middle class will account for about 16% of the world’s population,Ranked first in the world,The middle class’s share of domestic consumption will gradually increase from 32% in 2012 to 81%。In response to this trend,What layout can be carried out in the 188bet game industry?

Wu Zhixiang: The rise of the middle class will have an important impact on various consumer fields in the future,188bet game consumption is no exception。Affected by the rise of the middle class,The first is the rapid growth of high-end 188bet game,For example, luxury cruise travel、Global travel、Polar travel has grown rapidly in recent years,Tongcheng Cruise’s first Antarctic cruise charter in 2016 was a complete success,There is strong demand for cruise ships on various long-sea voyages (more than two weeks)。Also,With money、The expansion of the leisure crowd,The demand for leisure vacations will continue to grow rapidly,Various high-end resort facilities、Vacation services and other services have broad prospects。

In response to the above trends,We are on a cruise、Outbound travel、High-quality product lines have been launched in domestic 188bet game and other fields,Tongcheng Bailvhui, which serves middle-aged and elderly users, also provides high-end customized services for the elderly with strong spending power,In the future, more high-quality products will be developed according to the different needs of users,At the same time, more innovative services will be provided for leisure and vacation needs。

The 188bet game supply side must make adjustments

"21st Century": What do you think is the biggest change in the 188bet game industry in 2016,Or what are the trends worth noting?

Wu Zhixiang: First, the online 188bet game industry mentioned earlier、Offline integration speed up;The second is the promulgation and implementation of travel agency senior 188bet game service standards,Provides a direction guide for the development of 188bet game for middle-aged and elderly people;Third, the National 188bet game Administration launched a special campaign to crack down on “unreasonable low-price travel”,The regulatory crackdown will accelerate the process of supply-side reform in the 188bet game industry,Forcing 188bet game companies to adjust their competitive strategies;Fourth is the acceleration of the supply-side reform of the 188bet game industry,2016 is a critical year for supply-side reform in various industries,The 188bet game industry has also ushered in the supply-side reform facing the era of mass 188bet game,The policy supply and institutional supply of the 188bet game industry have increased significantly compared with previous years,Greatly stimulates the enthusiasm of 188bet game enterprises in service innovation and product innovation。

"21st Century": Development Trends of Outbound and Inbound 188bet game,What is your prediction?

Wu Zhixiang: Outbound travel,According to incomplete statistics,Currently the proportion of mainland Chinese residents with passports is less than 4%,Approximately 60 million people,Many people have not experienced going abroad,From this perspective,The rapid growth of outbound 188bet game in the future should be certain。Also,With the rapid expansion of China’s wealthy class,The demand for outbound travel will inevitably increase significantly。2016,The number of travelers on certain popular outbound travel routes has increased several times year-on-year,It will be a very important business unit in the next few years。

Inbound 188bet game,Long time,The growth rate of my country’s inbound 188bet game has been lower than that of domestic 188bet game and outbound 188bet game,The income scale of inbound 188bet game is also far less than that of other categories。Except for issues of scale and growth,Structural imbalance is also a prominent problem in inbound 188bet game,Take the statistical bulletin data for the first half of 2016 released by the National 188bet game Administration as an example,The total number of inbound tourists in the first half of the year was 67.87 million,Hong Kong and Macao contribute more than 80% of the tourists,Real foreign tourists only account for 19.8%。But,We don’t need to be overly pessimistic,With the comprehensive advancement of the supply-side reform of my country’s 188bet game industry,Improvement of 188bet game infrastructure and increased openness of the 188bet game industry,The future of inbound 188bet game is still worth looking forward to。

"21st Century": Structural imbalance of 188bet game products、The problem of insufficient effective supply,How to solve it?

Wu Zhixiang: We must solve the structural imbalance of 188bet game supply,The following aspects can be considered: Enterprises should change their business concepts,Adjust product structure and business strategy based on demand,Keep up with the pace of consumption upgrade;Crack down on unreasonable low-price tours and zero-negative tour fees to form a long-term mechanism,Forcing backward production capacity to withdraw from the market,Forcing 188bet game companies to change their business strategies;At the same time, improve the industry market competition mechanism,Let the market eliminate backward production capacity。

*This article is reproduced from the 21st Century Economic Report.

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