In fact, not only Ctrip, but also many OTA platforms, such as Tuniu, Lvmama and Tongcheng, have the problem of air ticket bundling. In other words, they hide some default bundling products in their orders and unilaterally provide users with service options other than air tickets, such as delivery cars and air accident insurance. Amid the criticism, it emerged that bundling was not the first time it had been exposed. It is also worth asking society why the OTA industry is bundling.
Bundling is the only option under the ban on air ticket service fees
Although Ctrip took on the responsibility for the entire OTA industry platform, the practice of “default tie-in” value-added products has not been completely outlawed on many OTA platforms. They still exist. It’s not a platform issue, it’s an industry issue. For OTA platforms, there is no clear source of revenue. Bundling is a desperate choice of commercialization model, and most OTA platforms rely on bundling to survive.
Looking around, the charging mode of all walks of life has become a normal profit, in people’s clothing, food, housing and travel activities, in addition to air ticket travel is not allowed to charge services, the other three forms of charging services can be seen everywhere. For example, in “clothes”, when the clothes are sent to dry cleaning, the store will moderately charge a certain service fee; In terms of “food”, consumers will give tips if they are satisfied with the service of the waiter when they go to a restaurant, and even charge corresponding service fees for the crab processing service specially for eating crabs, which is more common in European and American countries. In terms of “accommodation”, tipping the baggage attendant and other service staff of the hotel is an affirmation of its service value…
This shows that OTA ticketing services have the same service value as the other three areas. In fact, in addition to these daily life services, payment models in the Internet industry are increasingly common.
Charging service fees has become a trend these days, and the hottest area of payment these days is undoubtedly content payment. Take Caixin network as an example, recently Caixin network also embarked on the road of charging. At present, Caixin has been in a state of semi-charging. Recently, Caixin also announced that it will formally implement comprehensive charging. Caixin is a typical representative of content charging. This just shows that the service fee model is gradually expanding into more and more industries.
It would be a happy ending for all OTAs to be able to monetize properly in the form of a service fee. Charging service fee is not only a respect for the work achievements of the service provider, but also a choice for consumers to guarantee the quality of the service they receive. It is not only the continuous improvement and upgrading of the industry model, but also the improvement of the whole social cognition. The legalization of charging service fees on OTA platforms for the benefit of practitioners is of great significance to the healthy development of the online travel industry.
Charging fees is the only recipe for OTA monetization
Objectively, there is nothing right or wrong about bundling. Charging fees for services is a legitimate practice in all industries, and the OTA industry is on the verge of a new revolution, judging by other industry payment trends. OTA platform monetization model will be further upgraded, charging service fees will become the direction of the entire online travel industry.
First of all, for consumers, under the fee-based service mode, the platform will have more motivation to provide high-quality services, and consumers are more likely to get services with the same or even higher value than the service fees. The so-called “fleece flies”, online travel platforms in the search for a reasonable profit model after fruitless, is bound to seek other ways. In order for OTA platforms to survive, in addition to charging reasonable service fees, there are only two ways to reduce costs and expand profits. However, it is basically impossible for ticket agent services of online travel platforms such as Ctrip, Tuniu, Feizu and Tongcheng to achieve profits by reducing costs. As a result, fees may be the only way for OTAs to operate in a healthy way once bundles are gone.
Secondly, for the platform, since June 2015, in order to implement the requirement of “raising and lowering the generation”, the major airlines in China have cancelled the ticket agent fee successively, which is tantamount to saying that the ticket agent industry is working for the airlines for free. The only source of profit for the agency is a ticket agent fee of 10 yuan for every ticket sold. Ten yuan is not enough to cover the huge service cost for online travel platforms and agents. OTA’s implementation of service charge will make up for the problem of single profit model to some extent, and the better service experience consumers can enjoy under the service payment model will promote the win-win situation of both sides.
In fact, when consumers query and order air tickets through online travel platforms, OTA platforms and agents have to bear much higher costs. The purchase of a ticket often requires the accumulation of costs in pre-sale service, after-sales service, express delivery, SMS notification, manpower and management. The 10 yuan “agency fee” from airlines is not enough to keep otAs alive.
In terms of profits of all parties, charging service fees is the best way to make profits. If online travel platforms want to survive, they should put the issue of air ticket service fees on the agenda as soon as possible and exchange profits through services. In fact, ticket charging service can reverse the improvement of service quality, so as to bring consumers a new service experience.
Paying for service has become an industry consensus, and airfare fees will be a catalyst for the healthy growth of the OTA industry
In fact, the paid model already exists in every aspect of our lives. One is that the reality of paying is taking root. Western tipping culture has been introduced into modern China, gaining the support and affirmation of many young people. Nowadays, many occasions are trying out the tipping mode, but facing the domestic not strong paying atmosphere, there is still a long way to go to collect service fees.
The other is the charge for various services provided by Internet giants, such as the charge for cash withdrawal service successively launched by wechat or Alipay, the charge for reward of we-media content of wechat public account, and the charge for digital media content of Caixin website. For these charging modes, the public are positive, and many people are willing to take the initiative to pay rewards and other behaviors, which shows that the public’s awareness of payment is gradually taking shape.
All in all, these service charges are evolving into a social consensus, and it is an inevitable trend of The Times for online travel platforms to launch service charging models. In this context, OTA should also seek to strike a balance between “paid service” and user experience when solving the problems between the two. At a time when payment is not common in China, it is necessary to coordinate service charge and user experience.
If the form of charging service fees can be legalized, online travel platforms will provide higher service level to balance consumer psychology, and consumers will experience more equivalent or even value-added services, thus effectively avoiding non-standard forms of profit such as bundling. At that time, ticket service fees will drive the benign development of the industry, into a public recognition of the social consensus.
Liu Kuang, meditation on the Internet, wechat official account: Liukuang110