China’s online travel market is getting downright rowdy. Last week we saw international online travel specialists Tuniu and LY.com trade blows and harsh words, and apparently, market leaders Ctrip and Qunar want in on the action too. Ctrip CEO Liang Jianzhang announced last week that the company is setting aside RMB 1 billion (US$162 million) to wage a price war and offer zero-profit services, although he also denied that Ctrip has any direct competitors given that it brings in larger revenues than similar companies like Qunar.
See: LY fires back at Tuniu: ‘In one year, we will completely surpass you’
Qunar CEO Zhuang Chenchao begs to differ though, and according to Sina Tech he recently fired back at Ctrip, saying that Qunar does not fear a price war with Ctrip. Ctrip may be bigger than Qunar, but Zhuang says that when the two sides meet in battle, total revenues won’t mean much. He also described Qunar as having “a very wide moat” protecting it and said that Ctrip would have to “strip naked” to be able to jump into it and try to battle with Qunar. His less-than-subtle message: bring it on.
It’s unclear what the long-term effects of a price war would be on both companies, but in the short term things certainly look good for consumers. With China’s domestic and international online travel giants all dedicated to fighting each other, prices are likely to be driven down to new lows, and thrifty travelers should be able to find some great deals while these companies are busy beating on each other.
Photo by Michael Kappel
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