Ctrip Signs Agreement With Mediterranean Paradise Morocco to Boost Tourism
Morocco, located in the northwest corner of the African continent, "North African Garden". In addition to the capital Rabat, Casablanca is also a world-famous city that attracts countless visitors. It has a variety of natural and cultural landscapes, the stretch of the Atlantic coast, the boundless Sahara Desert, the Hassan II Mosque in Casablanca, the ancient city of Medina in Marrakech and Fez. According to official data from Morocco, Morocco received about 180,000 Chinese tourists in 2018. Before the visa-free policy for Chinese citizens, Morocco received less than 20,000 Chinese tourists each year. We believe that the data of 180,000 visitors will definitely have new breakthroughs in the future. Because, on September 6, 2019, Ctrip Group and the National Tourism Administration of Morocco formally signed a strategic cooperation agreement, the two sides will deepen cooperation and promote more Chinese tourists to travel to Morocco.
On September 6, Ctrip's co-founder and executive board chairman Liang Jianzhang held a meeting with the Moroccan Prime Minister Osmani in Rabat, Morocco, in the capital of Rabat. At the same time, Morocco’s Tourism, Air Transport, Handicrafts and Social Economy Minister Sajid and National Tourism Director Fickel accompanied Osmani to the meeting. It was at this meeting that Ctrip Group and the National Tourism Administration of Morocco formally signed a strategic cooperation agreement. Morocco has long been associated with China as a tourist destination:
As early as the 14th century, the famous Moroccan traveler Ibn Battuta came to China to communicate China's links with Africa and the Arab world. The Kingdom of Morocco and China officially established diplomatic relations in 1958. Last year, the two countries just celebrated the 60th anniversary of the establishment of diplomatic relations. As an important partner in actively responding to China's “One Belt, One Road” initiative, Morocco has been promoting relevant cooperation projects. The cooperation between Ctrip and the National Tourism Administration of Morocco is a new development in civil diplomacy and a new development in trade.
Moroccan Prime Minister Osmani said to Liang Jianzhang, "Since the opening of the visa in 2016, we are delighted to see an increase in the number of Chinese tourists going to Morocco. I hope more Chinese tourists will know about Morocco, like it here, and we will cooperate with Ctrip. The prospects are very optimistic." Ctrip and Morocco have agreed that the two parties will cooperate in destination marketing and product development within three years.
Mozambique will facilitate Ctrip in the field of tourism product design and resource development, while Ctrip provides a sustainable one-stop precision marketing solution. According to the agreement, the Moroccan National Tourism Administration will invest RMB 15 million in the next three years. Ctrip will invest the same amount of resources to jointly explore the tourism market between China and Morocco. Liang Jianzhang said, "Chinese tourists' travel habits are changing. They are not satisfied with traditional sightseeing and shopping. They pay more attention to the cultural experience of travel. Morocco's exotic culture attracts Chinese tourists, and tourism will also drive local tourists. economic development".
This land has experienced the impact of various civilizations in the long river of history, from the ancient Roman Empire to the Arab dynasty, to the modern European culture, and the integration of several civilizations has created a unique style of Morocco. In the past, the Chinese were strangers to this place. Although Sahara and Casablanca were catchy, it is difficult to relate to the three words of Morocco. Now, as a “free signing upstart”, more and more Chinese tourists have come to this mysterious “North African Garden” for three years to experience the baptism of color. The surge in Moroccan tourists has benefited from the 2016 visa-free opening. On June 1, 2016, Morocco officially implemented a visa-free policy for Chinese citizens. It will enter the territory of Morocco without any type of Chinese passport, and the maximum stay is no more than 90 days. Since then, the number of Chinese travellers to Morocco has grown rapidly, from 15,000 to 180,000 in 2018.
According to data from the Ctrip ticket platform, in the summer of 2019, Morocco has ranked third among the most popular African destinations for Chinese outbound tourists. Compared with last year, the booking volume of tickets has increased by 140%. Among these people, nearly half of the tourists are after 80s, and it is because of the long road, so Chinese tourists will be in-depth tour in Morocco, 90% of tourists will stay for more than 8 days, they choose to feel this piece slowly The ultimate beauty of the country of color. In 2020, we will usher in the "China-Morocco Tourism Culture Year". Various reputations and labels, cultural and visual contrasts, make this country attractive to travellers.
However, the absence of direct routes between China and Morocco is also a “hard injury”. Most tourists will choose to transfer to the Middle East countries, and the one-way time is more than 12 hours on the road. However, the good news is that Royal Air Maroc is expected to open a four-week direct flight from and to Casablanca to Beijing in October this year. After the opening of the direct flight, it is expected that the number of Chinese tourists visiting Morocco in 2019 is expected to reach 200,000. Morocco has proposed the “Vision 2020” plan to continue to make tourism one of the driving forces of Morocco and to make Morocco one of the most popular tourist destinations in the world. In Liang Jianzhang's view, Morocco has a long coastline, as well as landscapes such as the Sahara Desert and the ancient city. The tourism industry has great potential. Ctrip can work with Mozambique to develop and design travel products.
For team customer route design, such as the combination of products from Southern Europe and Spain; for free travel customers, the opening of direct flights between Morocco and Beijing is an opportunity, the related hotel products are also very important, many hotels in Morocco have very Attractive cultural elements. “We expect to attract 500,000 Chinese tourists to Morocco by 2020. Through cooperation with Ctrip, Morocco has become one of the 20 destination countries most popular among Chinese tourists”. This is the wish of Mohamed Sajid, Minister of Tourism, Air Transport, Handicrafts and Social Economy of Morocco. I look forward to a successful conclusion under the help of Ctrip.
Located in the northwest corner of the African continent, Morocco has always been known as the “North African Garden”. In addition to the capital Rabat, Casablanca is also a world-famous city. Morocco has a colourful natural and cultural landscape: the stretch of the Atlantic coast, the boundless Sahara Desert, the Hassan II Mosque in Casablanca, the ancient Medina of Marrakech and Fez... full of attractions for tourists from all over the world. . A few days ago, Liang Jianzhang, co-founder and executive director of China's leading travel company Ctrip Group, visited Morocco. Moroccan Prime Minister Osmani led a team to meet with him in Rabat. Morocco, tourism, air transport, handicrafts and society attended the talks. Economic Secretary Sajid and National Tourism Director Fickel. During the talks, the Moroccan National Tourism Administration and Ctrip Group formally signed a strategic cooperation agreement. The two sides will deepen cooperation and attract and help more Chinese tourists to travel to Morocco.
On September 6, in Rabat, Ctrip's co-founder and executive board chairman Liang Jianzhang (left) signed a strategic cooperation agreement with Finkel, the director of the Moroccan National Tourism Administration. Ctrip and the National Tourism Administration of Morocco reached a three-year strategic cooperation agreement (2019-2022). It is reported that within three years, the two sides will cooperate in destination marketing and product research and development; Mofang will provide convenience for Ctrip in the field of tourism product design and resource development; Ctrip will provide a sustainable one-stop precision marketing solution. According to the agreement, the Moroccan National Tourism Administration will invest RMB 15 million in the next three years. Ctrip will invest the same amount of resources to jointly explore the tourism market between China and Morocco.
Prime Minister Osmani went to Beijing in September last year to attend the Beijing Summit of the China-Africa Cooperation Forum. When meeting with Liang Jianzhang in Rabat, Prime Minister Osmani said: "Since the opening of the visa in 2016, we are delighted to see that the number of Chinese tourists to Morocco is gradually increasing. We are very optimistic about the future prospects of cooperation with Ctrip. I hope that more Chinese tourists like Morocco and know Morocco. Liang Jianzhang, Chairman of the Executive Board of Ctrip Group, said: "As the largest online travel company in the Asia Pacific region, Ctrip is very honored to have the opportunity to cooperate with the Moroccan government and the National Tourism Administration to promote more China. Visitors go to Morocco to experience the unique culture. The travel habits of Chinese tourists are changing, they are not satisfied with traditional sightseeing and shopping, they pay more attention to the cultural experience of travel.
Morocco's exotic culture is particularly attractive to Chinese tourists. Of course, tourism will also drive local economic development. ” As early as the 14th century, the famous Moroccan traveler Ibn Battuta came to China to communicate China's links with Africa and the Arab world. In 1958, the Kingdom of Morocco officially established diplomatic relations with China. Last year, the two countries just celebrated the 60th anniversary of the establishment of diplomatic relations. As an important partner in actively responding to China's “One Belt, One Road” initiative, Morocco has been committed to bringing relevant cooperation projects to the fore.
The cooperation between Ctrip and the National Tourism Administration of Morocco also reflects the new progress in the exchanges and trade between the two countries. The tourism industry of China and Morocco has been in close contact in recent years. From June 1st, 2016, Morocco is open to visa-free visas for Chinese citizens. Any type of Chinese passport can be entered into Morocco without a visa. The maximum stay is no more than 90 days. Since then, the number of Chinese travellers to Morocco has grown rapidly, from 15,000 in 2016 to 180,000 in 2018. In 2020, the "China-Morocco Tourism Culture Year" will be ushered in. Morocco has also proposed the Vision 2020 program, which includes making Morocco one of the most popular tourist destinations in the world. According to the strategic cooperation agreement between the two parties, Ctrip Group will use the advantages of the platform to help Morocco's “Vision 2020” plan.
Mohamed Sajid, Minister of Tourism, Air Transport, Handicrafts and Social Economy of Morocco, said: "By 2020, we expect to attract 500,000 Chinese tourists to Morocco every year. Through cooperation with Ctrip, we also hope that Morocco will become the most One of the 20 destination countries welcomed by Chinese tourists. To this end, Morocco is working to improve hotels and transportation facilities to improve the capacity of tourists. The direct route between Morocco and Beijing, China is also under negotiation.” Liang Jianzhang said: “After signing the agreement, Ctrip will be able to develop and design tourism products together with Mozambique. For example, in the route design for team customers, consider combining with tourism products from Southern Europe and Spain; The direct flight between Morocco and Beijing will also provide us with more and better opportunities."
There is currently no direct route between China and Morocco, and most tourists will choose to transit to the Middle East, which takes a long time. According to the Moroccan ambassador to China, Aziz Mekual, the Royal Airline of Morocco plans to open four direct flights from and to Casablanca to and from Beijing in October this year. This will greatly enhance the convenience of Chinese tourists visiting Morocco.
On May 23, Beijing time, Ctrip.com (NASDAQ: CTRP; hereinafter referred to as “Ctrip” or “Company”) released its financial results for the first quarter of 2019 as of March 31. According to the financial report, in the first quarter of 2019, Ctrip's net income was RMB 8.2 billion, a year-on-year increase of 21%, exceeding Wall Street's previous forecast of 20%, and net profit attributable to Ctrip shareholders was RMB 4.6 billion.
At the same time, operating profit for the first quarter was 885 million yuan, a year-on-year increase of 50%. Non-GAAP operating profit was RMB 1.4 billion, and operating profit margin was 17%, far exceeding Wall Street’s previous forecast of 12%-13%. Ctrip's international business climbed to 35%
Analysts believe that from the earnings report, we can see some new changes that Ctrip has made in the past few months.“The first is that international business continues to triumph.” The above believes. According to the financial report, Ctrip's international business revenue has increased to 35% of total revenue; international hotels and international air tickets have doubled the growth rate of China's outbound travels without counting the Sky Cruise; Skyscanner direct booking Business revenue also increased by approximately 250% year-on-year.
The above-mentioned people also believe that Ctrip is continuing to harvest the dividends from the channel sinking. The financial report shows that Ctrip has further expanded its market share in low-tier cities. Among them, the Ctrip brand's low-star hotel night reached a year-on-year growth rate of about 60% in the first quarter of 2019, and the offline store's transaction volume in the first quarter also reached three. Year-on-year growth in digits. Another change is that in the case of performance growth, the reduction in marketing expenses means an increase in marketing efficiency. The financial report mentioned that the sales and marketing expenses in the first quarter fell by 15% from the previous quarter, mainly due to the reduction of marketing-related activities. Non-GAAP sales and marketing expenses accounted for 27% of net operating income, compared to 31% in the same period in 2018 and 34% in the previous quarter.
“We are satisfied with the results of the first quarter, which reflects our confidence in the future development of China's tourism industry and our ability to continuously embrace the changes in the industry,” said Ctrip's co-founder and Executive Board Chairman Liang Jianzhang. According to quarterly financial results, “We are primarily driving growth through endogenous growth, focusing on expanding user coverage and enhancing user engagement to create long-term value for all stakeholders.”
At the business level, Ctrip's financial report showed that the two sectors of accommodation and transportation contributed RMB 3 billion and RMB 3.4 billion respectively, representing an increase of 21% and 16% respectively. At the same time, thanks to the growth of team tour and customized tour business during the holiday period, the tourism and holiday business achieved revenue of RMB 1 billion in the first quarter, a year-on-year increase of 25%. In addition, the Ctrip Business segment also generated an operating income of RMB 238 million in the first quarter due to the expansion of travel product coverage, a significant increase of 32% year-on-year. Previously, after the release of the full-year earnings report in 2018, Wall Street adjusted the rating and target price of Ctrip. Recently, a number of investment banks have seen the upside of Ctrip's share price.
Mizuho upgraded Ctrip's rating from neutral to buy in early May; Guotai Junan (19.150, 0.01, 0.05%) recently raised Ctrip's target price to US$47, arguing that young users, international expansion, low-line market growth and system upgrades will be revenue growth. provide support.“Ctrip overseas users have maintained rapid growth in the past two years and won new market share. The overseas counterattack is more of a transcendence, representing the success of the business model and advanced economic form.” Huatai Securities (20.600 , 0.00, 0.00%) Analyst Yu Yizhen said.
Ctrip CEO Sun Jie said, "We not only listen to the voices of our customers, but also take the opportunity to seize opportunities when new opportunities arise in the market, and moderately adjust our strategies to adapt to market changes. This also reflects our one through Ctrip. The platform platform is determined to create the best travel experience around the world." Some analysts said that the growth of Ctrip is driven by the potential of cross-border tourism and other aspects, as well as overseas development. McKinsey's outbound travel report pointed out that between 2010 and 2015, China's outbound tourism has more than doubled, and it is estimated that by 2020, China's outbound tourism will reach 160 million. Among them, digital channels are indispensable, and more than half of the respondents said they use OTA to find travel information.
Ctrip, which already has two overseas platforms, Trip.com and Skywalker, is now promoting the promotion of inbound tourism. During ITB China in May, Liang Jianzhang called for the growth of international tourists' inbound tourism from the aspects of payment, visa convenience and openness. Also worthy of attention during the first quarter is Ctrip's major investment. At the end of April, Ctrip announced its shareholding replacement as the largest shareholder of MakeMyTrip, India's largest online travel company. This investment was even seen by Ctrip as the beginning of the “third venture”. The analysis believes that by overweighting the investment in MakeMyTrip, Ctrip will participate in India, an important emerging market that is growing rapidly in the OTA field.
In addition, the young customer group is also a growth space that Ctrip attaches great importance to. The China Online Tourism Development Big Data Index Report 2018 shows that age is negatively correlated with the rigidity of tourism demand, with 90% and 80% accounting for more than 37% of the tourism population. At the same time, with the increase of the level of urbanization, the tourism consumption strength of young people will undoubtedly receive the strategic attention of Ctrip. According to the data, the current number of monthly active travel customers of all brands of Ctrip exceeds 200 million. The proportion of users under the age of 35 has remained stable at around 70% in the past five years, and the proportion of young users under the age of 29 has been 30%. Increased to nearly 50%.