Ctrip the loss has become the norm


yesterday (May 13th), Ctrip announced Q1 earnings in 2015. The report shows revenue grew by 46%, but there are still a net profit of $115 million in the same period last year, but in 2015 Q1 lost a total of $126 million. This is following the 2014 Q4 after Ctrip second quarter losses. Loss has become an online travel industry as a whole, the norm".

After the

earnings announcement Ctrip shares rose 8.84% to close at $71.14, indicating investors on Ctrip new normal recognition.

Hotel, traffic ticket two pillars

Q1 in 2015, an increase of 154% Ctrip revenue compared to three years ago, is a "law-abiding".


interesting is that Ctrip’s revenue structure is quite stable, 2015 Q1 almost cloned the structure of the Q1 in 2012.


2015 Q1, Ctrip hotel booking between the number of nights and traffic tickets increased by 60% and the number of votes, respectively, and 104%.

long time has not announced the exact number of inter night, according to the projected 2014 full year hotel reservation number of 66 million. Seven of which become direct sales, the sale of platform to become the three. Conservative estimates, Ctrip hotel in 2015 night reservation number will exceed 80 million.

followed Ctrip, the U.S. mission in 2014 the number of hotel bookings up to 45 million. In 2015 Q1 was 14 million, according to this trend this year could exceed Ctrip and a see.

but in terms of revenue, the United States mission, where can not shake the leading position of ctrip. 2015 Q1, Ctrip hotel business revenue of 950 million, where the full year in 2014 this business income of less than $350 million. The United States mission scheduled to the grade of the hotel can not be mentioned in the same breath with Ctrip and "Chinese, the largest part of the housing reservation platform".


Ctrip ticket booking business has been going beyond. But Ctrip will air tickets, train tickets and other booking business into a traffic ticket business, and does not disclose specific data. Single revenue to Chan, Ctrip 2015 Q1 traffic ticket revenue reached 948 million, equivalent to 2014 where the ticket business income of 81%. But the ticket market is undergoing tremendous changes, large airline ticket sales proportion will increase year by year, is expected in 2016 accounted for more than 50%. Ticket business money bleak and full of uncertainty.

so, in 2015, the main battlefield is still OTA Hotel reservations.

loss becomes the norm

2015 Q1, Ctrip gross margin record breaking 1 billion 600 million, an increase of 4>