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Briefing: Ctrip to offer RMB 100 million skiing subsidies ahead of Winter Olympics
携程预计2019年将投放1亿元滑雪补贴 – Jiemian
What happened: Ctrip, China’s leading travel information platform, will offer subsidies of up to RMB 100 million ($14.5 million) to encourage skiing-related activities. The move is part of the company’s “300-million-user skiing project”, in line with Beijing’s winter sports initiative ahead of the 2022 Olympic Winter Games. The company predicts that by the end of 2019, two million users will have registered for skiing activities and it will have more than 700 skiing venue partners.
Why it’s important: As China’s economic growth slows and competition remains fierce, lifestyle platforms prepare for new cash-burning turf wars. However, in a business ecosystem where subsidies are too common and easy to obtain, consumers may not be loyal to one brand, as there will always be other bargain deals waiting for them. Ctrip’s massive investment in encouraging winter sports may see short-term results, but it takes time to see if it’s sustainable in the long term.