Case Study On Qunar Profit Model

In recent years, there is a boost in online travel and tourism demand of national penetration rate, the Chinese online travel market is rapidly growing, and the whole industry is facing a rapid growth. Various online travel sites go to public according to their mode of development, and successfully landed on the United States NASDAQ to raise funds. After the absorbing of large amounts of investment capital, major tourism Internet company seek to find the most appropriate way to adjust itself to the upmost profitable model under the ever-changing environment as well as sustainable development. Qunar, as China’s largest online travel website and one of the biggest operator of travel application that possesses rapid user growth and trading scale, reach its net losses at 1.884 billion yuan by the fourth quarter of 2014, with unpromising future compared to the same period expanded by a factor of 10 times. As a result, scientific and legal development of profitable channel together with optimal profit model is to some extent of vital importance. Therefore, research on Qunar’s profit mode is a subject with both theoretical and practical value.The thesis uses the case analysis method, cite Qunar company as a case to describe its earning performance and compared its profit models by the study method of case-case studies-case enlightenment.First, put out the existing earning performance of Qunar company by profile, products and service to sum up the network’s operations and financial data. Second, further analyzing the composing elements of profit model.For instance, profit source, profit lever, and profit barrier. While compared with other domestic online tourism website of operations data and the profit capacity, Qunar’s profit mode exists some problem:(1) single profit sources;(2)low customer loyalty(3) slow development of new business;(4) less effective of cost control. Finally, propose some feasible suggestion by putting forward a number of recommendations, including: improving the platform services to broaden the earnings base; increasing user loyalty and strengthening the control of operating costs to improve fund efficiency.