Listed travel companies are gradually handing over their 2020 financial reports，In this “most special” annual report full of epidemic genes，Significant losses are the main theme，And the struggle of enterprises、Self-help、Transformation，And industry changes，Also hidden in it，or reveal it。

Experienced the retaliatory tourism boom during the National Day “Golden Week”，And the short-term downturn in "celebrating the New Year in situ" caused by the winter epidemic，The tourism market ushered in a new round of recovery signals amid ups and downs，It’s a blessing，Where is the road ahead？

Past year，All are prologue。Zhihui launches the "Hui Reading Financial Report" series of planning during the annual report season，Exploring the important imprints or imprints in the “report card” of tourism companies in 2020，Analysis of Enterprises，A glimpse into the industry，In order to create a picture of the tourism industry in the post-epidemic era，Know the past，Ming Trend。

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March 29，Ctrip Group released a high-profile "tourism marketing hub" strategy in Shanghai Center，Designed to aggregate traffic、Content、Three major sections of commodities，Create an open marketing ecological cycle system，2 regarded as the “deep cultivation of content” strategy proposed half a year ago.version 0。

Under the impact of the epidemic and the attack of competitors，Ctrip chooses to transform to content，Looking for the “second curve” of business growth，And it is also "downward"，Rio Tinto’s sinking market，More “trace” in its 2020 financial report，And this is a potential "base camp" that Tongcheng Yilong is seeking to stabilize，Of course Tongcheng is also "upward"，In its 2020 financial report，Revealing that it is increasing penetration in the mid- to high-end market。This has more intersections and divergences between the two companies。

These are two typical annual reports。The revenue that penetrated it was cut in half、Net profit declines、Financial data such as sharp decline in cash flow，Zhihui filters out 7 core details hidden in the annual report，Changes in the industry、Trends and Opportunities，Also revealed one by one。

Market recovery: Is the fundamentals of recovery stable?

Ctrip: Net revenue in 2020 is 18.3 billion yuan，Down 49% year-on-year；Full-year operating loss of 1.4 billion yuan，Net profit loss from equity return is 3.2 billion yuan。Q4 net operating income is 5 billion yuan，Down 40% year-on-year；Operating loss is 16 million yuan；Gross profit margin 81.6%，A new high in the past 11 quarters。

Tongcheng Yilong: Achieve revenue of 59 in 2020.3.3 billion yuan，19 year-on-year decrease.8%，Adjusted net profit is 9.5.4 billion yuan。Under the influence of the epidemic，Tongcheng Yilong still maintains profitability for four consecutive quarters；Fourth Quarter，Tongcheng Yilong’s adjusted net profit margin is 16.9%，Has returned to the level of the same period in 2019。

Under the haze of the epidemic，There is no need to elaborate on the loss in tourism performance，And the full-year performance, especially the fourth quarter performance，It is a reflection of the recovery and recovery potential of the domestic market，Also consider the company’s countermeasures、Strategic thinking and formulation logic are revealed。

As early as October last year，Ctrip announces “deep penetration in China，Thinking globally” strategy，Market strategy "lost direction"，From content、Product、Deeply explore the domestic tourism market in four directions: supply chain and quality。Content + transaction closed-loop construction process，In fact, it provided more help to Ctrip in product transaction conversion，Thus improving performance。

December last year，Tongcheng Yilong CEO Ma Heping issued an internal letter，Announced five core strategies for 2021 - branding、Sinking 188bet app market、Industry chain empowerment、Hotel High Growth and Destination Strategy。

The strategies of the two are similar，Some details of changes and opportunities in the tourism market after the epidemic，Get a glimpse:

1. A certain period of time in the future，Affected repeatedly by overseas epidemics，Domestic tourism consumption will continue to be released；

2. The domestic tourism market is recovering，Surrounding Tour、Local tourism will play an important role，It will also become one of the main driving forces for the growth of accommodation businesses such as hotels/B&Bs，For example, the “destination-like” attribute of hotels is getting stronger； 

3. The sinking market has formed a huge online travel blue ocean market，Bottom-line cities contain huge tourism consumption potential，OTA companies compete for the sinking market，It will be a user traffic、Product supply chain、Brand Marketing、Comprehensive competition of destination resource integration。includes "branding"，Intended to have more influence and strengthen users’ minds；The supply chain must be strong，And improve efficiency；The destination’s products and services must be long-lasting、Go deep；

4. Due to repeated overseas epidemics，The window period for outbound tourism consumption to return still exists，Domestic leisure vacation demand continues to rise，The mid-to-high-end market scale and product formats will continue to expand and diversify。

Traffic + supply chain: the core of competition in the OTA battlefield

Ctrip: As of the end of 2020，Contribution of content channels to total app traffic more than doubled from the beginning of the year，Access time of information speed more than tripled in one year；Also，The number of group destination activities and supplies increased by more than 25% year-on-year，

Tongcheng Yilong: in 2020，About 80.9% of average monthly active users come from WeChat mini programs，Most of the traffic comes from the WeChat payment portal and the drop-down list of WeChat’s favorite or most commonly used mini programs。

The traffic of the OTA platform mainly comes from main traffic and off-site traffic，Ctrip and Tongcheng-Elong happen to fall into two categories - Ctrip relies on its strong supply chain and market share，Attract repurchase traffic and word-of-mouth traffic to web pages and APPs，This is its own largest traffic entrance。After proposing a deep content strategy，Travel Photography、Content platforms such as live streaming have become an important channel for Ctrip’s traffic source。

Tongcheng Yilong，uses WeChat as the main traffic entrance，Q4 2020，The WeChat platform has set up two entrances for "tourism + transportation" in the new payment interface，And build a “search + travel” ecosystem，Tongcheng-Elong’s transportation ticketing service gained traffic tilt as a result。Therefore，Over 80% of monthly active users last year came from WeChat。

Except main traffic sources，Short video platform、Online platforms with outstanding “grass planting” functions such as content e-commerce (such as Douyin、Xiaohongshu, etc.)，It is also one of the important entrances for OTA traffic。This aspect，Compared to Ctrip、Meituan、First-tier players such as Feizhu，Tongcheng Yilong’s traffic advantage is not so obvious。The platform’s ability to attract traffic is weak，The third-party platform’s traffic diversion advantage is not obvious，Highly dependent on WeChat traffic，Maybe this is one of the reasons why Tongcheng Yilong accelerates its branding strategy。

Except for the competition for user traffic in the early stage，Competition in the later supply chain is equally important。

Ctrip describes the product supply chain as its “core competitiveness”，The competitive advantage of the supply chain is reflected in the scale of supplier cooperation、Product cost、Variety richness, etc.。The advantages of large-scale standard products include size and price advantages，And the overall chain-like and differentiated supply capabilities，It can be used as one of OTA’s traffic entrances。

current，is increasingly rising to the destination level。Tongcheng Yilong stated in the annual report，Will further explore and cooperate with local government in the future、Cooperation 188bet app download opportunities between the tourism bureau and upstream suppliers，Use existing traffic to develop new tourist destinations，Brings users comprehensive local travel suggestions and solutions。

Supply chain competition is no longer a single-chain competition of "suppliers-distributors-consumers"，It is a competition for resources centered around product suppliers and destination governments。Same，Integrating resources at the destination is also upgrading the product supply chain。

Low-tier cities: Online tourism seizes the "new blue ocean"

Ctrip: 2020，Ctrip further expands its market share in lower-tier cities，More than 40% of new customers come from third-tier cities and below。Ctrip is paying attention，More and more new users come from second- and third-tier cities，Especially four、Fifth-tier cities；They may not book in the first place，But will take the time initially to see what offers all the apps。

Tongcheng Yilong: As of December 31, 2020，The number of registered users living in non-first-tier cities in China accounts for about 86.3%；About 61.7% of new paying users on the WeChat platform come from third-tier or below cities in China，And gained a larger market share in the transportation and accommodation business segments。Q2 2020，Tongcheng Yilong launches new brand "Tongcheng Travel" and new slogan "Start Again，Just the same journey”，We hope that the new brand will become the leading travel brand in China’s lower-tier cities。

Compared to the first- and second-tier cities where established OTAs have been “fighting” for nearly 10 years，The penetration rate of online travel business in sinking markets is still low，This blue ocean has become a new battlefield for many online travel players。

From the classification of consumer groups，Young people in small towns aged between 19 and 39 are active representatives of the sinking consumer market。According to the "Sinking Market Insight Report" released by Alibaba，Youth in small towns have relatively more leisure time (small living radius，resulting in short commute time)，And relatively less economic pressure (low wages，But the cost of living is also low)。Superimpose the educational background and life experience of some individuals in first- and second-tier cities，The consumption preferences of young people in small towns are generally as follows: they prefer to buy branded products、Focus on spiritual consumption such as leisure and entertainment，The overall consumption pattern is increasingly in line with that of big cities。

For OTA companies，The growing youth group in small towns，means user growth dividend in sinking market；Their travel willingness and consumption needs，At the same time, it becomes a key variable for user traffic conversion，This is also the reason why OTA companies are accelerating their pursuit of land。

In the blue ocean market，The idea of ​​“scale is king” is still feasible，The recently popular "Town F4" (Zhengxin Chicken Steak、Dex、Mixue Ice City、Guerlain Beauty)，It is precisely with nearly 40,000 stores that it has occupied the sinking market。For example, Ctrip，Except online platforms，Also through nearly 6,000 offline stores in more than 300 cities，Further penetrating into the sinking market。

And in terms of products，Transportation products become OTA to acquire new users、Important channel for cross-selling other products。train ticket、Relatively high demand for air tickets during travel，While attracting traffic, it also plays the role of diverting traffic to other products，The most direct thing is to drive the growth of accommodation orders，Form a "air ticket/train + hotel/B&B" business connection。Pinduoduo, which “entered the online travel industry halfway”, also entered the game through this。

Mid-to-high-end market: new growth pole under variables

Ctrip: 2020，Mid-to-high-end hotel bookings achieved double-digit growth year-on-year，15%-20% higher than the industry average，Continue to improve product competitiveness in Q4，Increase market share，Especially in the mid-to-high-end market。Also，High-quality boutique tourism has also become an important alternative for outbound tourists，Q4 2020，The average consumption of domestic tour groups increased significantly year-on-year，Especially for mobile users。

Tongcheng Yilong: Q4 2020，Acquisition of business tourism enterprise，And leverage product and technology expertise to grow the business。Future，Will continue to look for merger and acquisition opportunities，By developing proven technology and strong relationships with travel service providers，Seize the opportunity in the business tourism sector。

Under the impact of the epidemic in 2020，The return of outbound travel consumption has become one of the largest variables in demand in the tourism consumer market。Qyer.com’s “Playful Chinese: 2020 Guide for Outbound Travelers to Have Fun in China” shows，83% of outbound travel users converted to domestic travel，Even if you can’t go abroad，But the time and cost users spend on travel remain basically unchanged。Undertake the consumer demand for reshoring，Bringing new development opportunities to the mid- to high-end market。

Compared to the sinking market，The mid- to high-end market is characterized by more personalized product demands、Quality，Even though user growth is relatively slow，But a leisure vacation for 400 million middle-class people、Business travel needs，Points to higher unit price per customer and more substantial profit margin，This is also an important market segment for OTAs to seek performance growth during the epidemic。

Early this year，Tongcheng Yilong announced the signing of a strategic investment agreement with Perlin Hotel Group，Perrin Hotel ranks 44th among the top 50 Chinese hotel groups，Owned by it includes Tinbo、Junyu、Five major high-quality hotel brands including Morin，Has nearly 200 hotels in total，Covering more than 30 cities across the country。Cooperation between the two，Tongcheng Yilong has a huge online traffic portal、Hotel PMS service provider Zhuzhe，And hotel professional one-stop supply chain Tongyi Mall；Perrin Hotel relies on its own brand positioning and existing customer base，Directly enriches Tongcheng Yilong’s layout of mid-to-high-end products，Become one of the channels for Tongcheng Yilong to increase its investment in the mid-to-high-end market (especially the business travel segment)。

According to annual report information，Tongcheng Yilong’s acquisitions of mid-to-high-end suppliers will continue，And will pass the management technology、Advantages such as membership system and marketing，Accelerate resource integration in the mid- to high-end market。But in the process，If you want to bypass or shake Ctrip’s oligarchic position in the business travel market，Not easy。

Outside the business travel section，Opportunities more directly related to the return of outbound tourism consumption，Reflected in the mid-to-high-end leisure and vacation market。Ctrip’s “2020 Domestic Leisure and Vacation Renaissance Index” display，Mid-to-high-end leisure and vacation products will recover faster，Especially high-star hotels。The window period for the return of outbound tourism consumption is limited，While Ctrip is expanding and integrating such product resources，How to cultivate and consolidate the market demand in this part、To avoid shrinking domestic market demand after the opening of outbound tourism，Also important。

Let’s look at it together with the sinking market above，Ctrip wants to enter the “sinking” market，Tongcheng wants to enter the “mid- to high-end” segment，Based on the existing market advantages，Each belongs to the "upward and downward" two-line layout，Enterprises need to expand、The industry is expanding，No problem with logic。

Local travel/surrounding travel: “dual-line competition” within and outside the industry

Ctrip: 2020，Ctrip unlocks shortcomings in high-frequency search categories such as short-distance travel and home travel。The platform has attracted more diverse and high-quality partners，To expand the company’s product offerings，Also expanded the scope of cooperation with existing partners。

Tongcheng Yilong: The business in 2020 will mainly focus on the domestic tourism market。Users prefer local and short-distance travel due to travel restrictions，has also become one of the main driving forces for the growth of the company’s hotel and tourist attractions business。

Whether it is mid-to-high-end or lower-tier market，The 188bet online sports betting epidemic hit hard，Domestic tourism demand has released significantly，It is an indisputable fact，This brings huge market potential for the recovery and growth of tourism companies。Meanwhile，sporadic recurrence of domestic epidemics，Some long-term flows are occasionally blocked，The domestic market shows a development trend of combining high-frequency short and medium-distance travel with low-frequency long-distance leisure travel。City、Local travel between suburbs or intercity、Surrounding tour or leisure short trip，A travel type that is becoming increasingly mainstream in the market。

For OTA，There are two main tests in the competition for the local travel/surrounding travel market。

One，Traveling locally、Consumption of peripheral travel，Facing the rising market demand，Leisure and vacation products are still in the incremental market to a certain extent (taking the accommodation industry as an example，B&B is one of the important products，The supply of such products will continue to increase)。This pair of OTA companies，means a new round of supply chain competition，Who integrates more resources at a lower cost in a short period of time，Who can gain the upper hand in the competition for the local tourism market。

Part 2，Competition in the local travel market is not internal competition in the OTA industry，It’s a battle between traditional OTAs and local life service platforms，This is especially obvious in first- and second-tier cities。Under the demand of “in-depth travel” from local customers，Diversified cultural and tourism consumption、Personalization、The trend of fragmentation is further revealed，Cultural Tourism Night Tour、Theme Park、Cultural, business and tourism complex、Museum、Cultural Center、Cinema and other types of consumption，All can be included in the scope of local tourism consumption。

The result of the blurred boundary between tourism and local life，It is a local life service platform such as Meituan，Relying on high-frequency businesses such as in-store catering and takeaway，Easier to drive local hotels、The growth of relatively low-frequency businesses such as attraction tickets。From this，The growth of relatively low-frequency businesses such as attraction tickets，Especially in the field of parent-child vacation，The competition between the two is becoming more and more obvious。

Content + Transaction: Competition knows no boundaries

October last year，Ctrip proposes “deep cultivation in China，Thinking globally” strategy，The core of “deep cultivation in the country” lies in “deep cultivation of content”。Ctrip management in the 2020Q4 financial report conference call，Mention the “three-step” strategy for content again:

1. Continue to enrich content categories and format choices，To get new users，And increase users’ stay time and frequency of use on the APP；

2. Integrated content distribution、Accurate recommendation and product innovation，Form a virtuous cycle of continuous growth of the marketing system，Especially on short-distance products，Increase conversion rate through effective recommendations and product innovation，Improving the slowdown in growth in 2020；

3. In-depth integration of content、Product、User and Marketing Network，The advantage of huge user base，Make Ctrip a brand promotion and various products、Marketing hub for events and more，Bringing growth space to the revenue channels of the pan-tourism industry。

In other words，Ctrip has officially moved towards the transformation from a trading platform to “content + transaction”，Try to build a marketing closed loop with more conversion effect from B-side to C-side。Content ecology，Travel Photography、Live broadcast and IP content columns are the three major engines for Ctrip to build a content ecosystem；Traffic conversion，Strong supply chain capabilities remain Ctrip’s core advantage，Benefit from product categories、Quantity and cost advantages，The user stickiness and conversion efficiency have also improved。

Behind the transformation of content，It is a strong OTA platform that penetrates deeper into the destination。Content marketing (especially live broadcast)，Can effectively improve the stickiness of cooperation with some suppliers，Go further，Does not rule out marketing 188bet sports betting app download to destinations、Possibility of contention for destination resources，This speculation was reflected in the “Tourism Renaissance 2” released by Ctrip this year.0" verified in the plan。

March 5，On the first anniversary of the “Tourism Revitalization Plan V”，Ctrip launches “Travel Renaissance 2.0” plan。The plan contains two focuses: First, give full play to the advantages of the industry’s marketing hub，Improve partners’ marketing efficiency；The second is to link destinations and partners to help rural revitalization、Promote red tourism、Increase investment in inbound tourism and other aspects，Especially in rural revitalization，Contains 10 key Internet celebrity village incubations、100 quality rural tourism routes created, etc.。

Ctrip goes offline，Integrate fragmented resources of the destination and try to create incremental products，This plan has obviously exceeded the business boundaries of traditional OTA。Based on the comprehensive background of the current online travel market，The layout logic also has a certain inevitability:

Under the general environment，The epidemic blocks outbound travel business，If Ctrip wants to “deeply explore the country”，It is necessary to expand new business growth space，Lego’s existing supply chain and user scale advantages；Content，horsefengwo、小红书、Tik Tok and other content marketing players，They are all actively expanding and trying transaction-side business，Expand the market share of online distribution of travel products；Traffic，Meituan、Tongcheng and other companies have difficulty showing advantages in traffic flow for Ctrip，means a certain shunt pressure。

Also，Ali、Internet giants such as Tencent accelerate the deployment of smart tourism，To some extent，It also poses a certain threat to Ctrip in terms of product supply chain and destination resource integration。Therefore，For Ctrip，Whether it is to delve deeper into the content or the destination，Both mean the dual choice of offense and defense，It also shows the transformation trajectory of industry leading OTAs after the epidemic。

Digitalization: cost reduction and efficiency increase require great effort

2020，Ctrip strives for content ecology，Tongcheng Yilong continues to provide services to ITA (Intelligent travel assistant，Intelligent travel steward) goal is approaching。

2018 is a fiercely competitive year in the OTA industry，Every company is playing “concept cards”，Seeking differentiation in platform positioning。Fliggy announced the creation of OTM model (Online Travel Marketplace，Online travel ecology)，And Tongcheng Yilong proposed a strategic transformation to ITA，Aims to strengthen operations and profitability through digitalization，And benefit the entire tourism industry。

According to Tongcheng Yilong’s latest financial report information，In 2020, Tongcheng Yilong’s technological innovation will mainly be applied to its own product development、Customer service automation and supplier value delivery。

C-side，Tongcheng Yilong develops customer service intelligent robot，Further optimization of the "Huixing System"，Optimize user interface, etc.。To provide more service options in different situations，Meet different travel needs。One of the essential demands is to reduce costs。

B side，Tongcheng Yilong effectively integrates supply chain resources in 2020，Via Automation、Digital operations for suppliers (automotive operators、Tourist Attractions、Airport、Hotels, etc.) empowerment，And launches software and service (SaaS) solutions to assist individual and small chain hotels in managing daily operations，And carry out inventory、Revenue and Marketing Management。

Ma Heping, CEO of Tongcheng Yilong, once said，The biggest growth space for digitalization lies in the lower-tier markets，Especially in third and fourth tier cities，The tourism base still has huge room for growth in terms of digitalization。Combined with Tongcheng Yilong’s strategic focus in the sinking market，And the current low penetration rate of online tourism business in bottom-line cities、Market background such as rapid demand growth，It’s not hard to see，Digital transformation will become one of the powerful drivers 188bet app download to accelerate its efforts to seize the sinking market space。

Also，Tongcheng Yilong’s model，Can be regarded as a "standard template" for OTA transformation。On the one hand，Optimization service、Product、Transactions and other links，Improve customer service efficiency and reduce operating costs，Create a better experience on the user side；On the other hand，You can borrow digital technology、Big data and other technologies promote the industry chain empowerment strategy，More directly，By integrating PMS、SaaS and other system service providers，And use this to optimize and expand its product supply chain。

Conclusion

From the perspective of the overall future strategy of the enterprise，Go to the trend prediction at each segment level in the annual report，The existing parts of Ctrip and Tongcheng Elong overlap，They have different priorities。The 7 details mentioned above are intertwined、penetrate each other，Jointly outline the changing characteristics of the tourism market in the post-epidemic period，And the changing trends in the OTA industry。

The issues behind the details，Such as Ctrip’s cultivation and consolidation of the domestic leisure vacation market、The extent to which the "tourism marketing strategy" will subsequently connect the user end and the product end，And Tongcheng Yilong’s construction of its own traffic portal、Further penetration into mid- to high-end hotels, etc.，Will be answered one by one in the future transformation of the enterprise。