Outbound travel business: How and where to go out of Ctrip's Ex i dark horse Note: In the past two years as the representative of outbound tourism business performed very active, touted by the capital markets. Outbound travel market blowout momentum. Mainstream business is around these big demand, entrepreneurs according to their own resources and strengths, you can select one of the segments into the market, choose to extend to other segments. In China there is this wave of children who: vacation before us, they want to take the opportunity to go abroad to get some fresh air, an eye-opener, but there is no clear destination, I thought as long as the air tickets cheap enough, where you can actually play. \u0026 Ldquo; the last time I was at Ctrip, often have friends come to me for help, they hope to find the cheapest international flights in the system \u0026 mdash; \u0026 mdash; where is not important, cheaper on the line. \u0026 Rdquo; the co-founder of the micro-ass children of Sheng Di opinion, this is business, is proficient ticket booking service Ctrip, where to have not set foot in the market segments.
Thus, Sheng Di and his two colleagues in 2012 has left many years of playing Ctrip, three people scrape together 50 million start-up capital to start a business life. Currently, the product is in the form of micro-ass children a travel tools APP, core function is to those \u0026 ldquo; we do not know where to play \u0026 rdquo; who provide overseas tours recommended. Specifically, the user to identify a point of departure, the micro-ass children will tease out the international flights to and from the information in this site and the surrounding cities starting to form a strip line, including \u0026 ldquo; point to point shuttle \u0026 rdquo; and \u0026 ldquo; splice multi-round \u0026 rdquo ; after the user selects the line, you can link to the appropriate airline or OTA dealership to book flights. Up to now, was born a year and a half has been micro-ass child or a very small start-up company \u0026 mdash; \u0026 mdash; no revenue, nor started to really promote their products, nearly 50 million users are also mostly from the natural growth, much less market share. But Di Sheng said micro donkey child's goal is to become the next \u0026 ldquo; Where \u0026 rdquo ;. \u0026 Ldquo; flight information data enough, tourist routes to Southeast Asia and Japan and South Korea from the current global coverage, we will launch site search. \u0026 Rdquo; Sheng Di said that at that time, if you have a clear destination, determine the travel time, you can continue through Ctrip, where to search for booking tickets, but if you do not have a clear destination, but the price priority, Maybe we can try to search with the micro donkey children. Venture out of Ctrip Ctrip return before James Liang, Ctrip's internal and external environment and not the past, many people left the idea of initiation, Sheng Di and his colleagues is part of it. \u0026 Ldquo; in 2012 7, August, began to have entrepreneurial ideas. Had James Liang Cheng has returned, maybe we would not choose to leave business. \u0026 Rdquo; Sheng Di recalls. Sheng Di and his colleagues entrepreneurial direction, from the past Ctrip doing business \u0026 mdash; \u0026 mdash; time is still Ctrip work, Sheng Di friends often asked him to help, to see the future there is no cheap outbound tourism Tickets, Sheng Di will find in Ctrip colleagues doing international air tickets, in the system \u0026 ldquo; \u0026 rdquo ;, a shift system caught the cheapest flights. \u0026 Ldquo; the bulk of outbound ticket is consumption, and low fares data are naturally occurring, but, in the system down to free up low-priced tickets of this play, only insiders know, outside of people do not know how to operate . \u0026 Rdquo;
Sheng Di feel quite the value of this thing, so just a few colleagues decided to do it out on his own, through technical means to cut into this market segment. \u0026 Ldquo; outbound travel is very potential market, but also for us, do not have the technical threshold of international air tickets, because we know very well where "digimon cosplay costumes " the technical rules. \u0026 Rdquo; Sheng Di said, the beginning of the three people out of business, one is the original Ctrip doing international flight search engine leader, another is doing international flights algorithm cattle, and Sheng Di is in Ctrip has done sales ticket, Beijing operations, human resources, \u0026 ldquo; \u0026 rdquo ;, eclectic three Minato 50 million start-up capital to start a business. July 2012, Sheng Di began to raise the Shanghai site, to plan, to recruit people; in October, slightly donkey children set up seven people core team \u0026 mdash; \u0026 mdash; in addition to Sheng Di, the other six core micro donkey children's Team members are international flights from Ctrip team out. In the months after the establishment of micro-ass team of children, the three founders of not salaried, four others have only a few thousand dollars a month for living expenses, plus a few interns, a dozen people in a residence in He began the arduous pioneering life. Until the June 2013, when the micro donkey children start-up capital of 500,000 yuan spent, about the time things a turning point \u0026 mdash; \u0026 mdash; Gobi find micro donkey children, voted 500 million. \u0026 Ldquo; this investment in place before I go to sleep every day is difficult, in fact, by the end of May 2013, we almost gunned. \u0026 Rdquo; Sheng Di recalls. After get this angel investment, micro-ass children in July 2013 moved the office, in a bit of a slightly larger office building officially recruit people from a dozen people, expanding to more than twenty people.
Sheng Di said that except for some office expenses, mainly micro-ass child costs are salaries, a month to spend more than two hundred thousand. \u0026 Ldquo; We are now talking to some investors talk about things A round of financing, and is expected in the second half after the line on the website, you can start the A round of financing. \u0026 Rdquo; Sheng Di said, \u0026 ldquo; estimate the funds in place before the end of the year. \u0026 Rdquo; reverse search mode after the October 2012 team was formally established, micro-ass children began to try to do \u0026 ldquo; international air multi-line search \u0026 rdquo ;, offers the cheapest outbound travel to the user through technological means, through appropriate Raiders line. \u0026 Ldquo; Ctrip, where to different micro-ass children is to provide a new way to search through technical means to travel, so that we can more quickly find their travel routes. \u0026 Rdquo; Sheng Di said, regardless of the user search Country or city, micro donkey child will search the site associated with the route are out, such as found in Bangkok, just out of Bangkok, there will Medan, Kuala Lumpur, and so some other place in Bangkok but the trip stop. Why should we add other places? This micro donkey children about the target audience, these users are not sure where to go to travel, so you can provide them with more choices. \u0026 Ldquo; and we will tell you, go visit Medan, than just go to Bangkok to spend more than one hundred dollars, you choose not to choose \u0026 rdquo;? Sheng Di example, \u0026 ldquo; from Shanghai to Bangkok, then cotton Portland, and then return to Shanghai, round-trip ticket tax as long as more than 1800 yuan. \u0026 Rdquo; however, the lowest ticket prices are often low-cost airline provided the user does not like low-cost airline, you can also select a non-budget airline, and in which elected the cheapest flights. \u0026 Ldquo; this is certainly not very profitable tickets, so the future will join hotel search. \u0026 Rdquo; Sheng Di said. In the business model, if docking is low-cost airline, micro-ass children are free chain in the past, and if the search result is the chain to OTA, micro donkey children can be charged from a part of the commission.
Sheng Di said the commission, the hotel's commission tickets, will be a source of income, but to support its business model requires a large amount of users. Thus, there is a series of questions placed in front of the micro-ass children \u0026 mdash; \u0026 mdash; why users choose to come here to what can attract massive flights of users with la corda d'oro cosplay the same parity model how to go where the competition from??? ? Where are the areas cut a more segments of the market, there is little chance of success Di Sheng explained that the target user group, the most direct appeal micro-ass child is \u0026 ldquo; \u0026 rdquo ;, is cheap in other channels hard to find on international prices. Sheng Di said, has been able to lower slightly donkey children than Ctrip, where to ticket prices, is not the same because the mode \u0026 mdash; \u0026 mdash; if there is a clear trip origin, destination, and to determine the travel time, people usually choose Where, or Ctrip; but micro-ass child's pattern is reversed, it will tell you, in this season, there are a number of low-cost travel this route, you go different on this model, determine the micro? donkey children and Ctrip, where to provide the ticket prices will be different. Because when there is a clear demand for the user when and where to go Ctrip will provide the corresponding product, and does not tell the user:? \u0026 Ldquo; not the lowest line you choose, you need to change a \u0026 rdquo; \u0026 ldquo; simply , we cut are those that do not know where to go travel the crowd, through technology to do arithmetic, and then tours to spell out, in accordance with the price of the order, or the order of travel of the month, arranged to provide to the user. \u0026 Rdquo;
Sheng Di said, \u0026 ldquo; do international flights, the need for all airlines, air routes do heart spectrum, and then to do the rule, search for the lowest airfare. This is our threshold. \u0026 Rdquo;? Why Ctrip, where to do this is not quite the value segment of the market seems to Sheng Di believe Ctrip, where to go is still staring at a greater income market, if the two companies are provided is cheaper than the user-specified ticket, it will affect their profits; and micro-ass children are willing to lose money to do, it is to want to use this approach to attract more outbound users, ahead of the layout of the future growth in outbound possible outbreak market. Do not hold the thigh to the micro-ass child in June 2013 the first on-line product is the mobile phone APP, is still in beta searchable website. For both products, micro-ass children have not do large-scale promotion. Mobile Internet era of going \u0026 ldquo; fast \u0026 rdquo ;, Why not promote micro-ass children a little bit faster then \u0026 ldquo;? Our understanding is that, if the product has done relatively well, the user is able to retain, but if the product is not yet ripe, difficult to form a user reputation in the market, there will be risks. \u0026 Rdquo; According to Sheng 迪介绍, by early next year, the micro-ass children will begin large-scale promotion. Before large-scale promotion, set up barriers to competition, the main micro donkey children, but also the layout of their outbound travel market is a necessary step. Sheng Di opinion, the moment of \u0026 ldquo; outside freedoms \u0026 rdquo; the market is not big enough, but in the next two to three years, there will be more and more Chinese people are willing to travel abroad, then, the market will break out.
And when large groups outside the free exercise of the free exercise of domestic groups over time, the capital market will be crazy to invest in overseas travel products. \u0026 Ldquo; at that time, is a start-up companies, or has become a relatively mature companies, the valuation is completely different. \u0026 Rdquo; Sheng Di said that this time, if there is a large flow-platform support, or the support of big businesses, you can fight in the market one, but in the current market has not really up, children need to focus on the micro-ass do technical, do platform, do the barriers, so that others are not so easy to come in. \u0026 Ldquo; Before outbound market real outbreak, we first need to do is build the barrier, once the barrier is completed, the competition in three to five years it is difficult to catch up. \u0026 Rdquo; Di Sheng explained that, \u0026 ldquo; this barrier is not the product itself, but can crawl all airlines operating data, and the establishment of rule by technical means, so as to make a recommendation every line has a very high price. \u0026 Rdquo; \u0026 ldquo; for example, a user searches for a destination, micro-ass children recommended that two to three destinations can be spliced together, this is the barrier. If you go anywhere to do this, probably take three to five months to increase an associated destination, so we will add a third destination. \u0026 Rdquo; Sheng Di said, \u0026 ldquo; Add a splicing destination, change the background system is very large. To add two to three destinations, competitors are difficult to follow, we will form a barrier. \u0026 Rdquo; data capture, organize data is micro donkey children in the past two years mainly to do things. In the micro-management team seems donkey children, the amount of data is not enough and cosplay costumes for sale more time, only suitable for APP, APP is pushing manner because, when the amount is large enough for the data, you can then launch site search. It is understood that the micro-ass children mainly covers Southeast Asia, Japan, Korea and other places of outbound travel, the end of the year, slightly donkey children is a more molded products, tourist routes will cover the globe.
For micro-ass children's founders, whether the future development of the company independently, or in cooperation with the giants, a large number of users need to do first. \u0026 Ldquo; If we do go anywhere in this scale, Ctrip willing to buy it, we do not exclude. After Ctrip position in the domestic online travel industry, and now no one to shake, many other companies has been strong, might eventually face a takeover by Ctrip or directly competitive with Ctrip. \u0026 Rdquo; Sheng Di said, \u0026 ldquo; we want the most is the traffic, do not rule out cooperation with such giants seek, guide traffic. If the giant companies to become our minority shareholders, it is a good thing, but we do not want to be holding them. \u0026 Rdquo; for micro-ass child is there is a way, is beginning to hold on a leg, such as Tencent raised. But if there is a separate corporate backing, independent bigger, better children for micro-ass enough. [Comment] State Kejia investors and investment companies Investment Manager Yu Xiang: Over the past two years, with outbound tourism business as a representative of the performance was very active in the capital markets by the blitz. Outbound travel market blowout state of affairs, the main benefit for several reasons: to bring the income growth of consumption upgrade, outbound trips and increase the frequency of both; appreciation of the renminbi, the domestic prices continued to rise and the appreciation of the renminbi's exit form spending spree ; support of national policy, China needs to digest large amounts of foreign exchange reserves, while China has maintained good diplomatic diplomatic image, a substantial increase in the number of countries in 2014 on the Chinese visa and the visa on arrival. The next few years, outbound travel market will maintain a sustained high growth, entrepreneurial opportunities attendant came into being.
Outbound involves several areas: air tickets, hotels, Raiders, visa services, extending from there travels sharing social tourism, overseas shopping, travel insurance and other segments. Mainstream business is around these big demand, entrepreneurs according to their own resources and strengths, you can select one of the segments into the market, choose to extend to other segments. However, such as micro-entrepreneurs like donkey children, opportunities and challenges, which is also related to traffic characteristics of mobile terminal \u0026 mdash; \u0026 mdash; on the one hand, the mobile terminal traffic dispersion, which cut to segments based entrepreneurs the opportunity to leave, As long as you are in one subdivision to achieve the ultimate user would be respected; on the other hand, the mobile end users to obtain and retain the user's costs are increasing, on the phone to delete the cost of an APP it is also a second, Whenever users are not satisfied with can be removed at any time, there are too many of the spare tire to choose from, which is even more entrepreneurs are required to achieve the ultimate product and retain long-term customers. In addition, outbound APP application, also face problems of user activity. Outbound tourism for most users is not high-frequency consumption, once or twice a year, much of it three or four, so how to improve the viscosity and the level of activity of users, promote the transformation of the transaction, for entrepreneurs, is a very important It challenges.