Trip.com's Profit Model Analysis And Financial Evaluation

As the income level of residents continues to rise,so does the people's demand for tourism.With the rise of China's Internet,people gradually began to explore from the perspective of the tourism industry,online tourism came into being,the huge market environment and people's demand continued to flourish has given birth to a number of domestic and foreign enterprises.As a product of the Internet and Tourism co-operation,the online tourism industry starts from the online customer's travel needs,through the Internet to convey a large amount of tourism information to consumers,for people to travel to provide more choices.According to industry research reports,China's tourism revenue in 2018 was 5.97 trillion yuan,up 10.5% year-on-year.Although growth is slowing compared with the high growth rates of the past few years,the penetration of the online market will continue to increase in the tourism industry as the mobile Internet continues to spread and advance.In 2018,China's online tourism trading market reached 975.425 billion yuan,an increase of 9.3% Yo Y.And when the domestic market levels off,whether it is in the "home advantage" of domestic enterprises or from overseas global enterprises,how to continue to survive and develop in these competitions,how to continue to profit is the common problem facing the industry today.This paper takes Trip.com as the research object of the article,firstly,combs and comments on the research results of online tourism,profit model and other directions by domestic and foreign scholars,secondly,after explaining the online tourism industry and Trip.com' s general situation and development history,summarizes a variety of typical profit models of the online tourism industry as a whole,and analyzes Trip.com' s profit model on this basis,and discusses the components of Trip.com' s profit model: object,profit point,profit source,profitable leverage and profit barrier.And the preliminary discovery of Trip.com' s profit model there are some advantages and potential problems and shortcomings.The article continues to further financial evaluation of its profit model,starting from many aspects,through the profitability,operational capacity,solvency,development capacity and other financial indicators,advantages and disadvantages of competitiveness analysis,reasonable summary of Trip.com profit model exposed shortcomings: user reputation imbalance,lack of innovation in corporate culture,the company's operating cost structure needs to be improved,and put forward the corresponding optimization recommendations.This paper from the practical point of view,for Trip.com' s future sustainable development provides a direction.At the same time,we hope to contribute to the improvement of the profit model of other enterprises in the online tourism industry.