A Study On Profit Model Of Ctrip

China is the largest and fastest growing tourism market in the world.With the rapid development of computer network,smart phone and communication technology,compared with traditional tourism,online travel is more convenient and efficient,improves price and information transparency,and saves time and money.Favored by many customers and travel product suppliers,with the rapid growth of trading volume,online travel becomes a new economic growth point.This paper takes Ctrip as an example to discuss the current situation and Improvement Countermeasures of the online travel market profit model.As one of the earliest travel websites,with the profit model of OTA,Ctrip grasped the opportunity and wined most market share.However,recently online travel has entered into the rapid development period when many online travel websites have been established,so the profit margins get smaller.Ctrip's profit mode based on "ticket + hotel" became a bottleneck.Based on the theories of online tourism profit model,this paper expounds the concept,composing elements and classification of online travel profit model.In addition to the theories mentioned,it also introduces the basic,business finance situation of Ctrip and analyzes the five elements of Ctrip's profit model-profit object,profit source,profit point,profit leverage and profit security.And then by positioning Ctrip profit model from the profit origin,operation mode and value chain,this paper draws a conclusion that its development trend is that business income and capital investment both important,OTA transferred to MTA and expansion in the industrial chain.Finally through comparison to the representative website on behalf of other profit model(the way cattle travel,where to go and travel compared to Ali),it sums us the advantages and disadvantages of Ctrip's profit mode.Finally,based on the trend of the online travel,this paper puts forward strategies to improvethe profit model such as product mode innovation,maximizing customer value and strengthening the mobile leverand and so on.Finally,it discusses the further development of online tourism.