Amazing Success of Ctrip in travel in China despite China

Ctrip with such a market domination and lack of intermediary choice, one is bound to have high % of repeat customers. It is case study by itself why there are just two players addressing the estimated 1 million room China fragmented lodging opportunity.

First their revenue is cash collection business for Ctrip in China..so imagine the controls involved in collecting about US $ 90 million in cash. China is today a cash market for services. The micro economic structures are stil to catch up with the macro structures.

Secondly each booking requires Ctrip to call each hotel to check if the customer has checked in and paid. Ctrip doesn't collect a cent upfront for 97% of hotel bookings. So think of the complexity at the back end

Thirdly - It is a call centre business and e-mail inquiry business. So to sell 6 million rooms with lack of automation requires an incredible operational setup.