Ctrip (China Trip) 携程 - PowerPoint Presentation

Slide1

Ctrip

(China Trip)

携程 (pronounced xie cheng) meaning “going together to share the journey”: Scientifically Managing Travel Services

Abe QuinterosSlide2

Present Position

Ctrip.com

International, Ltd. operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China

The revenues of China’s online vacation market totaled roughly 26 billion yuan (US$3.82

bn

) in Q2 2018, increases of 19.3% year-on-year or 11.3% quarter-on-quarter. Three holidays in this quarter, namely, Tomb-sweeping Day, Labor’s Day, and Dragon Boat Festival put this market back on track, which altogether received 337.1 million person-trips, up by 8.6% from Q1Slide3

Present Position

China's largest travel site,

Ctrip

, lets users book hotels, flights, and packaged tours around the world. In 2016, an estimated 250 million travelers used the site, making it the world’s second-largest online travel agent. (In 2015, the company booked nearly $50 billion in travel.)

Ctrip

now owns one of the world's biggest flight metasearch engines following its $1.74 billion purchase of the Edinburgh-based Skyscanner in 2016. And with its recent acquisition of several tour companies in the United States,

Ctrip

is forming itself into an online travel service that’s part aggregator, part booking platform, and part end-to-end tour operator. In November 2016, Jane

Jie

Sun became

Ctrip’s

CEO and director of the boardSlide4

New MarketsIt’s yet another move by

Ctrip to make its platform the one-stop shop for all things travel-related. Aside from Ctrip’s core business of booking flights, hotels, and tour packages, the company also has its own digital tour guide and social space for independent travelers dubbed the 

virtual team manager (VTM) and its own travel activities platform called Things to Do (TTD). Ideally, Ctrip users will never have to use another app again while travelingCtrip

wants its platform to cover virtually every need of Chinese tourists while they’re abroadYou can add global ride-hailing to the bevy of features offered to overseas travelers on

Ctrip

, China’s largest online travel agency (OTA). 

Ctrip recently announced that it has partnered with London-based startup Splyt

 to allow their travelers to book rides all over the world.Slide5

Background

Ctrip

(China trip) was established in

Shaghai

in 1999, at a time when Chinese travel agencies were small, weak, fragmented, and poor at service

Less than 5% of the hotels belonged to hotel groups

Hotels promoted themselves by advertising in newspapers

Airlines were all state-owned

E-ticket did not yet existSlide6

Hotel Reservations and 800 number

Ctrip

used the Internet to provide more comprehensive, transparent and up-to-date information, targeting frequent independent travelers

Launched online platform and 24 hour hotline

Convinced hotels to accept payment-upon-check-in model

From membership cards to tablet PC to acquire customers

By 2010, had 17,000 hotel suppliers in China and 20,000 abroadSlide7

Air Ticketing and Packaged Tours

Acquired Beijing Coast Air Service Company Shanghai Cui Ming International

Created a nationwide platform and relationships with travel agencies in over 60 cities

Growing use of credit cards and e-tickets accelerated growth and reduced fraud and errors

For tours, emphasized service and transparencySlide8

Corporate Travel Management & 2011 growth

Advantages in hotel, air ticketing, local market, and cost control capability

3 choices to client, if lowest not chosen, email sent to supervisor

Different travel polices, 3 broad groups based on their transaction value, each with a distinct service model

Overtake Amex; launched product for small and medium-sized enterprises

Launched restaurant booking, high-speed-train ticketing, and

wensite

that consolidated leisure travel informationSlide9

Creating the Company CultureAdopted 55443 Strategy

Extremely Customer-CentricNonhierarchicalScientifically ManagedSlide10

55443 Strategy

5- So far ahead of market the second player can’t catch up for at least 5 or 10 years

4- ahead of the market, but the advantage is relatively easy to replicate in the short term

3- market levelSlide11

Ctrip

grade

5- Service and branding

4- Product and IT

3- Price

=55443Slide12

Extremely Customer-Centric

Ctrip

neither a typical Chinese nor typical American company, a hybrid

US company’s management thinking and model with reliance on processes, data, and other formal management tools (Six Sigma)

Chinese company sharp market insight, local characteristics of understanding, seizing, and responding rapidly to market opportunitiesSlide13

Extremely Customer-Centric

Call center Slogans: ”Let customers hear our smile” and “100-1=0”, meaning one mistake could wipe out all

Ctrip

had done to build a long-standing customer relationship

Quality Assurance (QA) measured customer satisfaction and provided data to each department

Data spoke louder than titlesSlide14

Nonhierarchical

Equal and open culture

Open discussion

We are direct

Strong learning spirit

Ctrip

MBA to high-potential employeesSlide15

Scientifically Managed

Rooted in its DNA

A systemic, data-driven, decision-making process

Hypothesis formulation

Extensive data collection

Experimentation

Standardized tools of total quality management

Work measurement-”lifetime value of a customer”

Division of labor

Process analysisSlide16

Scientific Management

Need for approach in a mass-producing service using High technology

There are lots of transactions generating lots of data

Customer requirements don’t change very much

Culture requirements:

Quantitative focus-measurable

Need a good IT to generate and gather data, provide analytical tools

Incentive system to practice and preach

Open discussion, not just one analytical mind, but many, many people thinking this waySlide17

Scientific Approach to decision making

When department heads applied for budgets, they had to demonstrate returns they could achieve with the investment

Lower-level employees also used dataSlide18

Question 1

If you had one last air ticket to offer, who should you offer it to:

A) new

B) one-time

C) two-time

D) three-time

E) Diamond CustomerSlide19

Answer

If you had one last air ticket to offer, who should you offer it to:

A) new

B) one-time

C)

two-time

D) three-time

E) Diamond CustomerSlide20

Decision Making

Ctrip

data showed that if it satisfied someone three times in a row, he or she would become a lifetime customer

Experiments to support decision making with new members to

sales teamSlide21

Call Center Operations and Infrastructure

Service and Contact Center: phone+ instant messaging, e-mail, and fax

Candidates willingness to serve others

Launched Android, iPhone, and Symbian mobile platforms

IT accelerated training of new staff

To ensure service quality,

Ctrip

broke down all critical tasks identifying discrete steps, control points, and potential failure modesSlide22

IssuesSlide23

Question 2Which one is not a

Ctrip culture requirement?A) Quantitative focus-measurable

B) Need a good IT to generate and gather data, provide analytical toolsC) Incentive system to practice and preachD) Jean FridaysSlide24

AnswerWhich one is not a

Ctrip culture requirement?A) Quantitative focus-measurable

B) Need a good IT to generate and gather data, provide analytical toolsC) Incentive system to practice and preachD) Jean FridaysSlide25

Question 3Ctrip

wants its platform to cover virtually every need of Chinese tourists while they’re abroad, What is there latest service?A) Global ride-hailingB) Up-graded meals

C) First –Class goody bagD) Custom robe and slippersSlide26

AnswerCtrip

wants its platform to cover virtually every need of Chinese tourists while they’re abroad, What is there latest service?A) Global ride-hailing

B) Up-graded mealsC) First –Class goody bagD) Custom robe and slippers