Qunar: Hostilities Moderate in Chinese Price War

The Chinese hotel war may be coming to an end. Chinese OTA Qunar just reported a strong Q4 result and flagged its intention to cut back on hotel “couponing” – a strategy that has devastated yields for hoteliers and competitors such as Ctrip and eLong, which have both responded in kind.

Qunar told analysts it is taking “a more tailored approach” to couponing and expects its hotel “take rate” – now around 4% for direct sales – to remain stable in the short-term and grow over time.

Meanwhile, 4th quarter 2014 highlights for the company include:

  • Total revenues of RMB519.8 million (USD83.8m), an increase of 107.1% year-on-year.
  • A 400% increase in mobile revenues to RMB257.5 m.
  • Mobile now represents 49.5% of total revenues and 52.3% of pay-for-performance (“P4P”) revenues, compared to 20.5% and 22.6%, respectively, in the corresponding period of 2013.
  • Total Estimated Flight Ticket volume and Total Estimated Hotel Room-night volume were 24.6m  and 8.9m, respectively, an increase of 61.8% and 107.7% year-on-year.
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