Research On The Performance Of The Merging Of Ctrip And Qunar

In the “13th Five-Year Planning for the Development of Tourism”,the State Council puts forward to implement the “Internet + tourism” plan from the national strategic level,in which the proportion of online tourism consumption shall account more than 20% of the total tourism consumption by the end of 2020.However,it's estimated that the online tourism consumption only occupied 13% of total industry in 2015,there's a broad space for development.On this basis,domestic internet giants and capitals enter the online tourism market by the way of share or founding companies,to get some profits from the industry.As the first company to develop online tourism in China,Ctrip,founded in 1999,is leading the field undoubtedly.And Ctrip has gradually promoted the merger and integration in both upstream and downstream of online tourism since 2018 according to the development strategy of being a comprehensive service provider for online tourism.However,the rapid emerging of various online tourism websites still impacts the market share and profit space of Ctrip,and Qunar,controlled by Baidu,has been the representative.With the advantages of search technology,Qunar develops rapidly and has become the second largest online tourism website after Ctrip.The competition between the two companies to compete for market share is increasing and focuses on the price war,which leads their financial situation to deteriorate rapidly and the decline in consumer satisfaction.What's more,Ctrip suffers from a loss for the first time.Finally,Ctrip reached an agreement with Baidu,the strong stock holder of Qunar,and merged Qunar in October 2015.In this paper,the merger case is taken as the research object to analyze the motivation and performance of this merger,and a general apocalypse suitable for the merge in the online tourism has thereof been obtained.Meanwhile,the research of this case provide reference for the merger activity of online tourism companies or internet companies.This paper is divided into four chapters.Chapter one introduces the research background,significance,research methods and purposes,reviews and summarizes the literature on the merge motivation,synergy and performance.Chapter two expounds the development status and development trend of online tourism,and introduces the operation state of both sides of the merger(Ctrip and Qunar),as well as the merge program and process of this case.Chapter three is the case analysis.Combined with the development trend of online tourism and development strategy of Ctrip,the motivation for merging Qunar has been analyzed.Then the short-term and long-term stock performance of this merge case has been estimated with the event study method,the financial performance of the merge has been evaluated through the combined method of financial indicator comparison and analysis,Du Pont Analysis and continuous ring factor substitution method,effective ways affecting the performance has also been evaluated.By comparing and analyzing the changes of non financial indicators related to business,the influence of this merge on the company performance has been assessed.Through the research,it's found that the merge has a positive effect on the short-term and long-term stock performance,financial performance and operation related performance.The Chapter forth is a case revelation.In view of the results of the previous analysis,we summarize the three points of Enlightenment from the case.In the process of merger and acquisition,the right time of merger and acquisition should be grasped,the flexible payment method should be chosen,and the integration after merger and acquisition should be paid attention to.