The first o2o share of Chinas outbound tourism fell, and the chairman of the board of directors called it follow the trend

 The first o2o share of Chinas outbound tourism fell, and the chairman of the board of directors called it follow the trend

Photo source: Photo Network

Its a pity that I havent survived this cold winter.

On February 29, a document from Baicheng showed that the company decided to close the company and start liquidation preparation. In the notice on the companys decision to close the company and start liquidation preparation, Baicheng travel said that affected by the new crown epidemic, Baicheng capital could not maintain the companys continuous operation. For this reason, the company will carry out comprehensive aftertreatment, ask the employees to give understanding and support, and prepare for self seeking in advance. All employees are requested to complete the companys property return and other matters and procedures before 4:00 p.m. on March 9.

Opening the homepage of the official website is a holiday notice. In order to effectively prevent the spread of the virus, it is tentatively decided to take a leave until March 1, 2020, and go to work normally on March 2, 2020. During the leave period, no new visa order business will be accepted, and it is said that if there is any doubt about the order, you can call customer service. However, at present, the public calls and customer service calls of many branches of Baicheng travel network are not answered, and many products have been removed from the shelves.

Zhao Di left Baicheng travel in 2013, but he has always been paying attention to the old owners. At the annual meeting before I left, I had a very deep memory. Zeng always said that this was his second venture, and the people who are practical and entrepreneurial are always worthy of respect. Zhao Di said.

On the eve of continuous financing, everything is moving in a good direction. In Zhao Dis view, Baicheng travel network developed well from 2013 to 2016. But the market is changing too fast. If the capital cant keep up with it, the business development speed will be slow, so its easy to be surpassed. Zhao Di sighed.

Last year, many colleagues of Baicheng left their jobs, and the business was cut to 78. At that time, we knew that Baicheng was no longer good, and it was only a matter of time before the business was closed. Its a pity that I havent survived this cold winter Zhao Di looks sad. Baicheng travel network connected with the overseas destination hotel database at the beginning of its establishment. The goal is to break through the information barrier and realize the real-time reservation of dynamic inventory. Later, the strategic adjustment made the transformation and visa. Zhao Di said.

Its not hard to find out that the visa service is the main business of Baicheng, and takes visa as the runway to extend air tickets, hotels, customized tours and other services. Its headquarters are in Beijing, and its branches are in Shanghai, Wuhan, Guangzhou, Shenyang, Shenzhen and Chengdu.

Before the establishment of Baicheng travel network, Zeng song was the chairman of Beijing Huayuan International Tourism Co., Ltd. and was hailed as the leader of outbound tourism industry.

The history of Baicheng travel network dates back to 2000. At that time, was launched, and then was renamed as Baicheng travel network and Baicheng travel network.

From 2011 to 2015 is the financing intensive period of Baicheng travel network. The company successively took Yintai capital round a financing, and then completed round B financing of nearly 20 million US dollars led by Ali, and round C financing of 100 million yuan by an investment institution.

After multiple rounds of financing, Zeng song and Baicheng travel website successfully landed on the new third board in June 2016, with the securities referred to as Baicheng travel, becoming the first o2o outbound travel stock, and won the best OTA award of 2016 China Travel Internet billboard.

Pragmatism can lead to more stability, but at the same time it may miss the opportunity

2016 is the highlight of Baicheng travel. Com, but it is worth noting that its performance has been hard to be optimistic.

However, after the listing of the new three board, Baicheng tourism is not high-profile. No matter the official website information or public information, there is little new information disclosure.

On the other hand, the performance of Baicheng tourism in the capital market is not outstanding. In 2016, Baicheng tourism achieved an operating revenue of 549 million yuan, a year-on-year increase of 83.69%, and a net profit loss of 45.1081 million yuan; in 2017, the company achieved a revenue of 525 million yuan, a year-on-year decrease of 4.39%, and a net profit loss of 27.9545 million yuan.

In order to turn around the losses, Baicheng tourism has also made various attempts. According to the information in the 2018 half year report, Baichengs visa processing business accounts for 45.94% of its revenue, and its destination business accounts for 45.25%. In 2016, its destination business accounts for less than 18%. The financial report in the first half of 2018 is the last public financial report of Baicheng tourism. The amount of performance loss is reduced. The net profit in the first half of 2018 is - 12.8564 million yuan.

In the financial report of the first half of 2018, Baicheng tourism attributed the loss to the fact that it is still in the business development period of Internet industry companies, and the investment in technology research and development is at a relatively high level. Meanwhile, market competition and human cost change factors crowd out business profits. Although the operating profit has entered the fast growth channel and gradually approached the turning point of loss, there is uncertainty in the time to achieve profit, and there is still the risk of continuous loss in the future operating performance in a certain period. .

OTA entered the shuffling period in 2016, bringing more pressure to Baicheng travel. I think in the circle of Traditional tourists, Zengs general thinking and working style are more advanced, bold and decisive. But he was not born on the Internet. He was a traditional entrepreneur. He was pragmatic and not so radical. This is Zhao Dis impression of Zeng song, this has two sides. Pragmatism can make the company more stable, but at the same time, it may miss the best development opportunity..

Zhao Di believes that the current outcome of Baicheng travel may be related to the way of thinking: the business habits formed over the years cannot be changed overnight. Some OTA enterprises can provide crazy subsidies in the aspect of destination development, but the people from traditional travel agencies are more conservative, and they only need to complete the accounting before implementing it.

From 2013 to 2018, Baicheng tourism continued to lose money, obviously its business model was not healthy enough. Liu Jiewu, director of Beijing Times blueprint Research Institute of culture, tourism and urban development, told the daily economic news that the decline of Baicheng travel network is more due to the inaccurate choice of the track and the vague business model.

In fact, the profit model designed at that time was not the visa business itself, but the long tail products behind it. Visa is just a flow entry. We hope to integrate a series of back-end services and destination resources through visa to achieve a long-term consumption of an order. Talking about the track selection at that time, Zhao Di said. Because the profit of visa is too transparent, the profit of visa cant support such a large company. The great probability of visa holders is to travel, and they hope to penetrate more businesses through this traffic entrance.

However, according to Liu Jiewu, from the perspective of the whole tourism market, the profit of visa business is only 5% or even lower, and the revenue is difficult to support the development of large enterprises. In addition, its hard to get through the business logic of leveraging other markets with visa business. In the era of increasingly fierce competition in the OTA market, visa is no longer the first choice for consumers. Many OTA travel packages cover visa business.

Photo source: Photo Network

The tourism industry is too fragile. I hope it will be better in the future

At present, Baicheng travel has not released the documents circulated on the Internet. But on February 29, a travel wechat screenshot obtained by the reporter of daily economic news showed that Zeng song, the founder, chairman and CEO of Baicheng, said in a travel wechat group on the afternoon of February 29 that in principle, he should not owe a penny to the supplier, (not to) the consumer and the employee (a penny), bear the bank debt himself, and try his best. In order to keep up with the trend, lets keep going!

For Zeng songs statement above, some people in the industry cheered up in the group, some people lamented that reputation is the biggest resource, and some people blessed him with a comeback.

One industry member of the wechat group lamented to the reporter of daily economic news that the epidemic had a great impact on the tourism industry, and the peers were very sorry for the situation of Baicheng. In the future, the impact of the epidemic and the collapse of the enterprise will not be excluded. On the other hand, there are also problems in the operation of Baicheng travel network before. This liquidation is a stop loss option.

Its also a once famous company. In the eyes of a tourism observer, the decline of Baicheng travel network is only a case under the influence of the epidemic, and there are other companies that cant support it in the future.

Visa business has obvious personalized characteristics, it is difficult to standardize customization and form a large scale. Liu added that the liquidation of the 100 journey tourism also sounded a wake-up call to all tourism industries. To realize that the most important thing for survival is cash flow, we need to find the right direction for survival.

The epidemic is definitely an accelerator for companies to fall, but the previous operation is also crucial. Wu Liyun, associate professor of China Institute of culture and tourism industry, Beijing Institute of international studies, believes that at present, the competition in the tourism market is increasingly fierce, and the accelerated agglomeration of large enterprises has squeezed the small and medium-sized enterprises; if they cant occupy an absolute advantage in the market segmentation and form their own unique competitiveness, it is difficult for them to survive.

The tourism industry is too fragile and the profits are very low. Any straw can crush a seemingly strong tourism enterprise. People who are involved in this industry are also full of feelings. Zhao Di said: the whole situation has been decided. Although its a failure, but this way of curtain call is really regrettable. At present, Baicheng travel net has closed its business, leaving a lot of regrets. I have been in this industry for more than ten years, witnessing the whole process of the industry from mediocrity to being favored by the capital, and then to the wave of sand. But no matter how it changes, keep in mind that this industry needs time and experience, and we hope it will be better in the future.

On February 29, the reporter of the daily economic news (hereinafter referred to as NBD) contacted Zeng song to have a dialogue on the market concerns.

Zeng song: its not our official document. Its the internal email document of employees. Its spread out somehow, causing so much concern.

After the discussion between the management and the decision-making level, we think that we need to think ahead to protect the rights and interests of consumers, suppliers and employees, and then we need to discuss the relevant responsibilities and disposal methods with the bank.

NBD: what is the reason why the company is in the current situation?

Zeng song: the industry itself has been in trouble for a long time. On the surface, the gross profit rate of the industry is constantly decreasing. In fact, it is the productivity and production efficiency brought by human resources and capital are too low to meet the increasing cost balance of the day. The emergence of the epidemic situation has compressed the space to adhere to, making the original problems more complicated.

Zeng song: for a long time, I mortgaged my real estate to the bank and paid the employees of the enterprise. I have no power.

I have been in this industry for more than 20 years. I havent thought about whether I will choose the travel industry next, but I hope the tourism industry will develop better in the future.

At present, we are not bankrupt or owe users and suppliers money, but it will take some time to deal with some problems. We send this document to express the companys attitude (some employees deal with orders and find jobs in advance to make a living). On March 20, the industry will return the quality deposit, which can be used to pay wages.