CTRIP: SCIENTIFICALLY MANAGING TRAVEL SERVICES Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Ctrip: Scientifically Managing Travel Services

Introduction

Ctrip.com international ltd. is an international traveling service provider company,which was founded in 1999 in Shanghai. The company is currently dealing in many services such as air ticketing, hotel reservations and packaged tour by primarily targeting FITs (Frequent independent travelers). The company uses scientific approach to manage its daily services and performs 60% of daily transactions through call center and 40% through an online system. Ctrip has captured 3% market share of an overall travel market by acquiring 51.6% market share of OTA. (Online travel agency).

Problem Statement

Ctrip is a leading traveling service provider in China. It has broadened its services to many service areas, which include: online booking for restaurants and online booking for high speed train. The company alsolaunched a traveling information website in 2011. For fostering the business, Jane Sun-the CFO of Ctrip and his team has to decide about some available strategic options. Ctrip could expand its business by broadening either its customer base or its services.(DAVID A .GARVIN & NANCY HUADAI, 2013)

Situational Analysis

Ctrip was founded in 1999 under the great supervision of four founders; Neil Shen, Qi Ji, Min Fan and James Liang. After analyzing the traveling market conditions, they came up with some strategic solutions. First solution is targeting FITs by providing them convenience and quality. Ctrip introduceda website “Ctrip.com” and launched an online platform for facilitating a 24-hoursorder booking. For strengthening its hotel reservation facilities, Ctrip started to acquire hotel reservation companies and developed strong relationship with hotel suppliers. In 2010, it had number of suppliers- nationally and internationally.

SWOT Analysis

A detailed SWOT analysis has been performed in order to examine the company’s current situation by identifyingits strength, weakness, opportunities and threats associated with the business. Ctrip targeted FITs because of high growing rate of private enterprises in China. Ctrip provided them convenience and quality at the reasonable price. Ctrip has an online platform for order booking along with the website “Ctrip.com”. It has a strong IT system that facilitates a wide range of facilities. Ctrip’s competitive advantage is its rapid growth with the use of technology. It has established a PDA (Personal digital assistants) system, Online E-Booking system, GDS (Global distribution system), V-booking withhaving a good management team. Ctrip has been offering many services, such as: air ticketing, hotel reservations and package toursto different countries. Equipped staff with PCs or tabs to show product’s features to clients efficiently. In China, the airlines industry was totally state-owned initially.Ctrip has faced numerouschallengesin the field of corporate travel management, because its main target market comprises ofmedium to high end clients. Corporate travel management’s customers are super high-end clients and hence, this segment yields loss,but because of its effective management, Ctrip marked as best TMC in China, in 2011. It has broadened its services to many service areas, which include: online booking for restaurants, online booking for high speed train. It had also launched a traveling information website in 2011. Additionally, Ctrip has applied many strategic measures to improve its quality, such as: application of six sigma approach, scientific management, empowering the staff, decision making based on facts and figures, staff training, and equal opportunities for staff along with the provision of full IT support.(See appendix 1 for detailed SWOT analysis)(Miller, 2007).............................

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