Ctrip and Elong, the two Chinese OTA giants declared strings of price wars over each other to win over customers and bigger market share at the cost of profitability, the aftermath is that both of them now seemed to be extremely exhausted.

According to their Q3 reports, Ctrip declined 40% in revenue while Elong suffered a loss of RMB 30 million. However, Tang Lan, Ctrip’s VP revealed in an interview that when would the long-lasting war stop depends on its rival, Elong.

Ctrip and Elong aren’t the only ones who got caught by irrational price war while most of Chinese OTAs were forced to join the war in that they feared losing consumers. After the three-month price war, they can barely afford the heavy cash burden. Ctrip has consumed RMB 300 million in three months just for marketing.

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Chelsea Dong

She reads, travels, photographs and writes, with interests in chronicling China tech scene and interpreting how technology disrupts the way people live.