Chapter 1688 (1/2)

In the late autumn, at the foot of the Great Wall, the summit forum of China US tourism industry was officially held.

This time, more than 30 enterprises from both sides participated in the forum.

The media of both sides also paid special attention to this forum, because it is the first Sino US tourism industry forum organized by the people.

As the sponsor of the forum, Li Mu announced the new business of ”where to go Taobao” to the heads of enterprises on both sides.

”Go where” will become a new secondary section of Taobao, with domain name quna.taobao.com 。

In this section, Taobao will provide customers with air tickets to and from the first tier cities in China, hotels in the first tier cities in China and all over California, and other travel related resources and services.

”Where to go” is a travel product created by Li Mu this time. However, he didn't plan to spend money on it, but he was prepared to seize the tourism resources in his own hands from the route of eating resources.

Ctrip's business model is the intermediary and integrator in the tourism industry. However, its resources are not exclusive. Users can book hotels in Ctrip, where to go, flying pigs and other products, and there is basically no difference in price.

Li Mu thinks that the poor play the way of the poor, the rich play the way of the rich, the poor play the way of Ctrip. The rich play the way of the rich, simply spend money to buy resources, buy them and then do integration.

Therefore, Li Mu brought the leaders of Muye technology and Taobao to the summit forum. He asked Muye technology to discuss resource purchase with the service, and Taobao to discuss specific cooperation modes and requirements with them.

For example, Li Mu requires that from December, he first sells 10% of the air tickets between the first tier cities in China and California to Makino technology at a 20% discount on the market price, and then increases by 5% every month, up to 30% of the total air tickets.

The reason why we should take 10% first, and then increase 5% every month is that we should leave an initial stage for outbound tourism business, and the gradual growth will be more scientific.

Take Air China for example. Most of their flights from Yanjing to San Francisco and Los Angeles are discontented. If it's the off-season for studying abroad and traveling, the attendance rate is even less than 40%. Only during the Spring Festival, Christmas and summer vacation can the attendance rate reach more than 80%.

For such a flight, Li Mu asked Muye technology to pay 80% of the world's normal discount price first, and take 10% of the tickets in his own hands. Muye technology authorized Taobao to sell these tickets. Muye technology was responsible for its own profits and losses. Even if one of them was not sold, it would bear its own costs.

For Air China, if the price is 20% off, most of the time it won't lose money, because most of the time, the remaining seats of the flight are far more than 10%. In this case, Makino technology paid 10% of the cost, but it helped them a lot.

The only loss is the limited peak time every year. In the busiest days, there will even be oversold of the plane. The whole flight will sell 320 seats for 300 seats. In this case, there is basically no discount on the air tickets. In this case, 20% of the ticket price will be lost if we pay 20% off to Makino technology.

However, airlines are not idiots. They can measure the demand of peak season and off-season every year. Even if they lose a little money in peak season, it is more cost-effective to sell 10% of the total to Makino technology, so they have no reason to refuse.

The representative of Air China said to Li Mu, ”Mr. Li, we have no opinion on the other conditions you put forward, but you need to increase by 5% every month until 50%. We want to know how you are going to operate after 30%?”

In most cases, Li Mu is willing to take 30% of the seats on a route with a seating rate of no more than 50%. For airlines, it's almost a dream to wake up with a smile, but they don't quite understand why Li Mu sets a 30% ceiling.

Li Mu said: ”if 30% of your seats are bought by Makino technology, then I will suggest you try to open more flights, and Makino technology will take 40% of your flights directly!”

In Li Mu's opinion, he doesn't do charity for the airlines. If 30% of the air tickets are fully covered, the airlines will be naturally happy, but there is still a gap of 2-30% between them when they are fully loaded. For them, what they want most is to directly cover 50% or even 60% of Muye technology, so that their airline can be nearly fully loaded all the year round.

So, for their current established routes and flights, Li Mu only covers 30% of them at most. If you want to pack more, OK, you can add new flights. As long as the new flights are opened, I will take 40% directly.

This 40% is the guarantee to encourage airlines to open new flights. Only by encouraging and inducing airlines to open more flights, can the interaction between the two places become closer and closer.