August 30, 2013

Ctrip and Qunar partnership to focus on vacation packages


With the rapid development of the China's mobile internet industry, new online travel products have been introduced one after another incessantly, and the traditional OTA market is being chipped away by mobile suppliers at an increasingly faster pace.

Why would Ctrip, the no.1 online travel service provider in China, decide to work with Qunar? Why does it chose vacation business among its numerous products? What are the prospects of such a partnership like?

According to Liu Xin, an senior analyst of the internet development research division of CNNIC "China Internet Network Information Center", Qunar and Ctrip are different types of companies; Qunar is a travel information search platform while Ctrip is a leading OTA; the two companies are not competitive against one another in most of their operations. Earlier, a few OTAs have boycotted Qunar's TTS model, but Ctrip was not one of them. To make a comparison that might not be totally proper, where Baidu's myriad of information has been nourishing the development of ecommerce, Qunar can also drive the reform and upgrading of Ctrip through its B2C model with its user information, marketing information, and price information. The cooperation between the travel search engine and the online travel agent is an inevitable result of the main trend of the diversified development of internet travel information and products.

From a macro perspective, with the rapid development of the mobile internet industry that is led by such products as Wechat, Taobao, Weibo, and mobile QQ, new online travel products have been introduced one after another incessantly, and the traditional OTA market is being chipped away by mobile suppliers at an increasingly faster pace. Besides seeking reform and upgrading, industrial leaders like Ctrip have also been challenged considerably, and they are in urgent need of client resource, market information, price feedback, and other supports.

Get the full story China Economic Net

Read also "China’s online travel giants enter partnership"