Analysis Of Online Travel Websites' Profit Model

As people income levels increase, people pay more and more attention to the spiritual enjoyment, tourism has gradually become popular way of entertainment.A batch of online travel sites such as Ctrip.com arises at the historic moment, using the Internet to reduce the degree of information asymmetry, and reduce the transaction cost.As the tourism rising, more and more practitioners and capital into the online travel market.Online travel industry have emerged a lot of enterprise, competition is becoming more and more intense.To keep advantage in the fierce market competition, they need to have a clear profit model.The paper take Ctrip.com for example,in-depth analysis of the profit model of online travel.I hope to provide valuable suggestions for the rapid development of online travel.Contents of this paper is divided into five parts:The first part is an introduction, mainly introduces the background and significance, literature review, research methods and innovative paper points. The second part is the theoretical basis, we introduced the profit model theory and analyze the external environment of online travel network.The third part is Ctrip existing profit model analysis, this chapter is the main part of the article. The fourth part is Ctrip profit model problems and improvement strategy, this chapter is the thrust of the article is located. The last part is the conclusion and prospect, made a summary of the full text.The main conclusions of this article are: operating status of Ctrip is a stable gross margins, greater earnings potential; increase marketing investment, lower growth in profits in exchange for development; win resources through strategic investments, by expanding the market.As can be seen from Ctrip, financial data analysis in the past four years, revenue capacity Ctrip known, profit model works well, and there is the trend of rapid development, prudent financial data, the financial indicators have growth momentum, very optimistic about future business conditions. Ctrip profit model problems are: Lack of innovation, high service cost, network security and service problems.Ctrip profit model improvement measures include: To speed up innovation to find new growth point,Improve the quality of service,Reduce operational costs,Implement the strategy of talent.