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Ctrip vs. Meituan: The Duopoly Competition in China's Online Travel Agency Market

携程对美团:线上旅行社的双寡头竞争

Ctrip once held a dominant position in China's online travel agency (OTA) market, commanding a market share of 60% at its peak. However, in recent years, its dominance has been challenged by Meituan, which leverages its strengths in various home services and robust financial resources. While Ctrip continues to lead in the high-end market, Meituan has established a strong presence in the low-end market. This case study explores Ctrip's primary strategy of exclusive hotel listings and Meituan's strategy of offering subsidies, as well as the competitive dynamics between the two companies in this duopoly market. Additionally, it examines the competition among hotels on these platforms and the complex relationship between hotels and OTA platforms.

Year of Publication: 2025
Ref. No.: 24/807C
Discipline: Marketing, Strategy & General Management
Industry: Hotels, Restaurants, Leisure
Country/Region: China (People's Rep. of)
Company: Trip.com Group
Languages: Simplified Chinese
Pages of Text: 12

Learning Objective:

1.  Understand how the strategy of exclusive listings operates and its effects on hotels, OTA platforms, and consumers.

2.  Analyze the impact of platform subsidies on hotels, OTA platforms, and consumers, and explore how such subsidies can potentially harm hotels.

3.  Examine the intricate relationship between hotels and OTA platforms.

 

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