1. Ctrip (China Trip)携程 (pronounced xie cheng) meaning “going together to share the journey”: Scientifically Managing Travel Services
Abe Quinteros

2. Present Position
Ctrip.com International, Ltd. operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China
The revenues of China’s online vacation market totaled roughly 26 billion yuan (US$3.82 bn) in Q2 2018, increases of 19.3% year-on-year or 11.3% quarter-on-quarter. Three holidays in this quarter, namely, Tomb-sweeping Day, Labor’s Day, and Dragon Boat Festival put this market back on track, which altogether received million person-trips, up by 8.6% from Q1

3. Present Position
China's largest travel site, Ctrip, lets users book hotels, flights, and packaged tours around the world. In 2016, an estimated 250 million travelers used the site, making it the world’s second-largest online travel agent. (In 2015, the company booked nearly $50 billion in travel.) Ctrip now owns one of the world's biggest flight metasearch engines following its $1.74 billion purchase of the Edinburgh-based Skyscanner in And with its recent acquisition of several tour companies in the United States, Ctrip is forming itself into an online travel service that’s part aggregator, part booking platform, and part end-to-end tour operator. In November 2016, Jane Jie Sun became Ctrip’s CEO and director of the board

4. It’s yet another move by Ctrip to make its platform the one- stop shop for all things travel-related. Aside from Ctrip’s core business of booking flights, hotels, and tour packages, the company also has its own digital tour guide and social space for independent travelers dubbed the virtual team manager (VTM) and its own travel activities platform called Things to Do (TTD). Ideally, Ctrip users will never have to use another app again while traveling
Ctrip wants its platform to cover virtually every need of Chinese tourists while they’re abroad
You can add global ride-hailing to the bevy of features offered to overseas travelers on Ctrip, China’s largest online travel agency (OTA). Ctrip recently announced that it has partnered with London-based startup Splyt to allow their travelers to book rides all over the world.
New Markets

5. Background
Ctrip (China trip) was established in Shaghai in 1999, at a time when Chinese travel agencies were small, weak, fragmented, and poor at service
Less than 5% of the hotels belonged to hotel groups
Hotels promoted themselves by advertising in newspapers
Airlines were all state-owned
E-ticket did not yet exist

6. Hotel Reservations and 800 number
Ctrip used the Internet to provide more comprehensive, transparent and up-to-date information, targeting frequent independent travelers
Launched online platform and 24 hour hotline
Convinced hotels to accept payment-upon-check-in model
From membership cards to tablet PC to acquire customers
By 2010, had 17,000 hotel suppliers in China and 20,000 abroad

7. Air Ticketing and Packaged Tours
Acquired Beijing Coast Air Service Company Shanghai Cui Ming International
Created a nationwide platform and relationships with travel agencies in over 60 cities
Growing use of credit cards and e-tickets accelerated growth and reduced fraud and errors
For tours, emphasized service and transparency

8. Corporate Travel Management & 2011 growth
Advantages in hotel, air ticketing, local market, and cost control capability
3 choices to client, if lowest not chosen, sent to supervisor
Different travel polices, 3 broad groups based on their transaction value, each with a distinct service model
Overtake Amex; launched product for small and medium-sized enterprises
Launched restaurant booking, high-speed-train ticketing, and wensite that consolidated leisure travel information

9. Creating the Company Culture
Adopted Strategy
Extremely Customer-Centric
Nonhierarchical
Scientifically Managed
Creating the Company Culture

10. 55443 Strategy
5- So far ahead of market the second player can’t catch up for at least 5 or 10 years
4- ahead of the market, but the advantage is relatively easy to replicate in the short term
3- market level

11. Ctrip grade
5- Service and branding
4- Product and IT
3- Price
=55443

12. Extremely Customer-Centric
Ctrip neither a typical Chinese nor typical American company, a hybrid
US company’s management thinking and model with reliance on processes, data, and other formal management tools (Six Sigma)
Chinese company sharp market insight, local characteristics of understanding, seizing, and responding rapidly to market opportunities

13. Extremely Customer-Centric
Call center Slogans: ”Let customers hear our smile” and “100- 1=0”, meaning one mistake could wipe out all Ctrip had done to build a long-standing customer relationship
Quality Assurance (QA) measured customer satisfaction and provided data to each department
Data spoke louder than titles

14. Nonhierarchical Equal and open culture Open discussion We are direct
Strong learning spirit
Ctrip MBA to high-potential employees

15. Scientifically Managed
Rooted in its DNA
A systemic, data-driven, decision-making process
Hypothesis formulation
Extensive data collection
Experimentation
Standardized tools of total quality management
Work measurement-”lifetime value of a customer”
Division of labor
Process analysis

16. Scientific Management
Need for approach in a mass-producing service using High technology
There are lots of transactions generating lots of data
Customer requirements don’t change very much
Culture requirements:
Quantitative focus-measurable
Need a good IT to generate and gather data, provide analytical tools
Incentive system to practice and preach
Open discussion, not just one analytical mind, but many, many people thinking this way

17. Scientific Approach to decision making
When department heads applied for budgets, they had to demonstrate returns they could achieve with the investment
Lower-level employees also used data

18. Question 1
If you had one last air ticket to offer, who should you offer it to:
A) new
B) one-time
C) two-time
D) three-time
E) Diamond Customer

19. Answer
If you had one last air ticket to offer, who should you offer it to:
A) new
B) one-time
C) two-time
D) three-time
E) Diamond Customer

20. Decision Making
Ctrip data showed that if it satisfied someone three times in a row, he or she would become a lifetime customer
Experiments to support decision making with new members to sales team

21. Call Center Operations and Infrastructure
Service and Contact Center: phone+ instant messaging, , and fax
Candidates willingness to serve others
Launched Android, iPhone, and Symbian mobile platforms
IT accelerated training of new staff
To ensure service quality, Ctrip broke down all critical tasks identifying discrete steps, control points, and potential failure modes

22. Issues

23. Question 2 Which one is not a Ctrip culture requirement?
A) Quantitative focus-measurable
B) Need a good IT to generate and gather data, provide analytical tools
C) Incentive system to practice and preach
D) Jean Fridays
Question 2

24. Answer Which one is not a Ctrip culture requirement?
A) Quantitative focus-measurable
B) Need a good IT to generate and gather data, provide analytical tools
C) Incentive system to practice and preach
D) Jean Fridays
Answer

25. Ctrip wants its platform to cover virtually every need of Chinese tourists while they’re abroad, What is there latest service?
A) Global ride-hailing
B) Up-graded meals
C) First –Class goody bag
D) Custom robe and slippers
Question 3

26. Ctrip wants its platform to cover virtually every need of Chinese tourists while they’re abroad, What is there latest service?
A) Global ride-hailing
B) Up-graded meals
C) First –Class goody bag
D) Custom robe and slippers
Answer