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Qunar ups the ante in battle with Ctrip
By Ding Yining |
July 9, 2012, Monday
|
Online Edition
Online Edition
ONLINE travel search website Qunar.com said today it will spend US$30 million to build a service platform for online travel booking agents and set up a new research and development center in Shanghai to attract more travel products vendors.
Qunar will recruit engineers and develop smart service platforms to help travel agents move their booking business online, the Beijing-based company said in a statement yesterday.
Qunar's announcement came after Ctrip, China's leading online travel booking site, announced last week it will inject US$500 million for promotion and sales activities within one year.
Qunar said it will offer call-in center services as well as online order processing infrastructure for travel agents seeking to move their business online.
Baidu became Qunar's biggest institutional shareholder after investing US$306 million last June.
Unlike Ctrip, Qunar makes money by linking customers to online travel booking sites and charges a commission on each successful order placed on external sites. Ctrip operates as a wholesaler and distributes tourism products to individual travelers.
"The fierce competition between Ctrip and Qunar as well as several other online travel agents will force some of the smaller players out of the market," said Qi Jianzhe, a researcher with Beijing-based Internet consultancy Analysys International.
At the same time, more consumers will be attracted by sales campaigns and gradually shift to websites to make hotel and flight reservations, he added.
Qunar will recruit engineers and develop smart service platforms to help travel agents move their booking business online, the Beijing-based company said in a statement yesterday.
Qunar's announcement came after Ctrip, China's leading online travel booking site, announced last week it will inject US$500 million for promotion and sales activities within one year.
Qunar said it will offer call-in center services as well as online order processing infrastructure for travel agents seeking to move their business online.
Baidu became Qunar's biggest institutional shareholder after investing US$306 million last June.
Unlike Ctrip, Qunar makes money by linking customers to online travel booking sites and charges a commission on each successful order placed on external sites. Ctrip operates as a wholesaler and distributes tourism products to individual travelers.
"The fierce competition between Ctrip and Qunar as well as several other online travel agents will force some of the smaller players out of the market," said Qi Jianzhe, a researcher with Beijing-based Internet consultancy Analysys International.
At the same time, more consumers will be attracted by sales campaigns and gradually shift to websites to make hotel and flight reservations, he added.
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