Ctrip Transforms towards Mobile Internet, Has to

Ctrip has been sitting on the overlord position of online travel industry for almost a decade before year 2012. However, a string of small travel startups equipped with disruptive innovation in travel business challenged the largest Chinese OTA from many aspects, flight booking, hotel booking, travelogue, you name it.

Competition from its long-time rivals including eLong and so on was also mounting that Ctrip had to put up a fight with them via a series of price war, which incurred a dent on the company’s latest financial results, in 2012 its operating profit declined 39% on a yoy basis to about US$ 105 million.

The major problems lie in the approach and thinking method of senior management team, who are too conservative and failed at swift response to the ever-changing market situation, especially the mobile internet trend rapidly. The team is under the leadership of CEO Fan Min, who has extensive experience in traditional hotel industry but doesn’t really have Internet-thinking mindset. In 2012, Ctrip is subjected to the fierce competition from eLong, Qunar and other mobile internet product, however, Fan Min’s experience and thinking method is not helpful for Ctrip in the mobile internet oriented market situation.

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