Ctrip air tickets bundles accident survived questions about vote makes 24-ctrip, airline reservations, and casualty-IT news Ctrip air tickets bundles accident survived questions about vote makes 24

Once suspended by a China insurance regulatory Commission issued a ticket bundle insurance category of sales practices, changing the names, is quietly making a comeback.

Recently, consumers miss Kim (not his real name) to reflect to the reporter for the China Business Journal, ctrip air tickets is bound by mandatory insurance, and after buying tickets without formal itinerary and cannot be reimbursed.

Reporter to clarifying the matter with ctrip, the response was that this ticket is marked with "travel packages" words, combination tickets and other travel products portfolio of tourism products, no question of tied sales or increase sales.

However, senior industry practitioners told reporters that this is actually a trick of the trade, is the "edge". "The so-called travel packages, the main product is the ticket, do not include any travel products, passengers must be c gift cards, aviation insurance, one of three travel coupons, it is not mandatory that bundling is? ”

The industry view, ctrip compulsory aviation insurance is bundled as profit-driven. Casualty of 30 yuan, ctrip to take 24 Yuan, ctrip by reducing ticket prices to boost sales, then this new pattern of tying insurance more profitable than selling tickets on their own old pattern.

Forced-choice "travel packages"

Recently, consumers miss Kim (pseudonym) reflected to reporters, ctrip air tickets, only to find, is bound by mandatory insurance, and after buying tickets without formal itinerary cannot be reimbursed, after sales problem.

In the last, the reporter found that similar cases are not uncommon. Many netizens were reflected in ctrip air tickets, reimbursement is received by travel agency invoices, no itinerary, unable to cover flight. Customer service reflect the deal after is travel packages, no itineraries.

Reporter found on the net, there is this. Search flight from Chengdu to Shenzhen on June 18, jumped out the first search result is a Sichuan Airlines flight 3U8701 ticket 43 percent, discount price is 611 Yuan, followed by Mark "travel packages". Tap into, package-an additional 30 Yuan for "ctrip gift card", 30 "aviation accident insurance", as well as original 60 Yuan price at 30 dollars "tourist coupon" and must choose to buy an air ticket. Sichuan Airlines fares for the same flight website price for 47 percent, 660 Yuan.

Reporter to clarifying the matter with ctrip, ctrip's explanation was that no question of tied sales or increase sales. Cheng said, "travel Suite" product for combination tickets and other travel products portfolio of tourism products, is a one-time reservation ctrip in order to meet customer demand and select the portion of the vacation channel product into ticket sales channels. And combination tickets including aviation accident insurance, travel coupons, gift cards, either, according to different flights packages of different kinds to choose from.

Ctrip also said above, guests do not need to purchase any other travel product can choose "business optimization" and other products, selected with the airline's other non-meal ticket.

Why not provide itineraries, ctrip said, "travel Suite" product is different from the ordinary ticket products purchased separately, but a similar holiday products. Holiday products, although there are plane, but does not break out itinerary, but provides full invoice "travel packages" as well. Reimbursed if guests confirmed itinerary must be used, it is recommended that select "business optimization" provide separate flight itinerary.

But senior industry practitioners, told reporters that judging from the package contents, whose main product is the ticket does not include tickets, hotels and other travel products, is actually a discount ticket binding-related expenses. "Ctrip, but changed the name to circumvent the regulatory risk. ”

Tickets already forced bundling of such situations general practices in the industry. As early as 2013, the China insurance regulatory Commission issued a special stop bundling insurance notice of special emphasis are highlighted by the masses air tickets, train tickets, bus ticket sales forced tying short-term accident insurance issues.

Aviation law expert Zhang Qi Huai said that bundling behavior related to alleged violations of the insurance regulations and the laws and regulations of the Insurance Act, violated consumers ' right to choose, in terms of the Insurance Act violated the principle of voluntary insurance contract, if consumers are dispute of this sales model, you can complain to the airlines in the Association or association, to safeguard their legitimate rights and interests.

Behind the interest of

The "where" rivals such as pressure, market competition, domestic ticket prices had been more transparent now, agents get the price difference is generally small. To compete for customers with sales, each agent will often come up with part of their income from commissions profit to customers, use lower prices to attract customers. But for ctrip is such a huge market for OTA, to give 1 point profit is equal to cede a large amount of revenue. Ctrip's approach are: low prices to attract customers and make profits back by selling insurance and vouchers.

According to industry sources, ctrip has a large portion of their profits from insurance agents. Ctrip on this scale, get 80% even higher premiums as a percentage of Agency Commission is already an open secret. That is 30 Yuan for accident insurance, ctrip to take 24 dollars, insurance companies 6. C by reducing ticket prices to boost sales, then this new pattern of tying insurance more profitable than selling tickets on their own old pattern.

Ctrip travel gift cards, coupons and tying to ctrip is the equivalent of "advance", although can be used to offset ctrip prepaid attraction tickets, travel and hotel vacation package, but with ctrip's sales, you can deposit a large sum of money, generating enormous cash flow, return on investment and cash-flow benefits such as convenience. Moreover, many users are in fact purchased in ctrip air tickets, not to actually use these vouchers.

In fact, ctrip tying insurance premium is higher. Domestic insurance company costs, for example, 1 million aviation accident insurance coverage, insurance for one year, not limited by how many times the aircraft, each guaranteed premium of only 40 Yuan. Ctrip sells 1 million aviation accident insurance coverage, only one flight (1-5 hours), premiums to 30 dollars.

The other hand, ctrip to compete on price with their rivals must also attract some small agents stationed in get low fares, bundled in aviation insurance, which can also take out certain parts to small agencies.

As the traditional dominance of OTA, ctrip ticket based on proprietary products. But the impact of rival low-fare strategy, ctrip ticket business had declined. After the return of James Liang ctrip, ctrip began to change their approach. In response to a price war, ctrip ticket business began to implement an open platform strategy, in addition to proprietary products, but also introduced a number of vendor products.

"Cheng hoped that through these vendors provide competitors the same products at low prices to attract customers. "Ctrip insiders told reporters. In fact, this approach really worked, ctrip in 2013, according to annual financial reports, ctrip ticket business was continued strong growth in 2013, an airline business 30% per cent growth for three consecutive quarters. However, due to possible regulatory loopholes caused by open platform will be ctrip on problems to be faced in the near future.