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Chapter 1689 Summit Forum (Part 2)

In order to ensure that every link can achieve the lowest cost, Li Mu asked the travel companies of China and the United States to give themselves the lowest quotation on the market and forcefully sign a price guarantee agreement, promising that the tourism resources they have in their hands will not be supplied to other third-party companies at a price lower than or equal to that provided to Muye Technology.

In other words, the resource agreement price of Makino Technology must be the lowest.

At first, several American travel companies were still skeptical about this "overlord clause", so Li Mu took some time to gather them together for a meeting.

At the meeting, Li Mu consulted these companies about their current concerns and found that their biggest concern was that Taobao Qunar’s customers were not large enough.

In their opinion, if the number of customers is insufficient, the market potential is naturally insufficient. If the lowest price is still promised, it will be difficult to deal with if larger customers have opinions about this.

The head of California's largest travel service company told Li Mu: "Mr. Li, we are willing to give Muye Technology a service quote that is low enough, but you ask us to guarantee that the price of Muye Technology is the lowest, and that other companies cannot be lower than or equal to this price. This is indeed a bit harsh for us."

Li Mu asked him back: "If you think there is something harsh, let's discuss it."

The other party said: "We have fully studied the current market situation and prospects of Chinese first-tier cities traveling to the United States. Although we are also looking forward to the huge revenue growth of Chinese tourists, according to our analysis, the growth space for Chinese first-tier cities traveling to the United States in a short period of time is not particularly large. If we give you an exclusive minimum price at this time, it will be very harmful to our other customers."

Li Mu smiled and said: "At this stage, whether Americans come to China for travel or Chinese come to the United States for travel, there are relatively few, but it is precisely because of this that the future development space is very huge."

As he said, Li Mu gave an example: "Look, this time we are nominally strengthening the tourism interaction between California and China's first-tier cities, namely Yanjing, Shanghai Stock Exchange, Yangcheng and Shenzhen Stock Exchange. But do you know that in addition to the US Embassy in China in Yanjing, Shanghai Stock Exchange and Yangcheng have US Consulate General. These two cities cover East China and South China, both of which are the most economically developed regions in China. It can be said that China has the richest and highest per capita income in their coverage. So, do you really think that behind this is the business of four cities and California?"

After a pause, Li Mu said: "Everyone is engaged in tourism and is very clear about the basic elements of cross-border routes, especially the long flight from China to the United States. The routes can be said to be all hub-to-hub. I have now obtained the lowest air ticket price on the market and the lowest hotel price on the market. Now I am asking you for the lowest prices of other tourism resources on the market. If you cooperate with me, the cost price of the tourism products I have formulated will be far lower than the normal level. In addition, I am not making money at all. As long as I add operating costs to the cost, I don't need to get an extra cent of profit. In this way, the price I give is the unique ultra-low price on the market."

"If I provide a seven-day trip from Los Angeles to Yanjing, the comprehensive price is several hundred dollars cheaper than other channels, I believe that people in other states around California will choose to set off from Los Angeles without hesitation. It will only take more than an hour or dozens of dollars to fly from Phoenix, Arizona to Los Angeles."

"If the price I give is a thousand dollars cheaper than other channels, let alone the states around you, I believe that even New Yorkers on the East Coast will be willing to buy my services and then spend a few hours to turn around in Los Angeles. I heard that the air tickets from the East Coast to the West Coast are always under one hundred dollars."

The travel companies attending the meeting were all silent, and what Li Mu said was indeed very attractive to them.

Everyone has heard of the situation in China. Currently, there are not many hub airports in China. Most of the hub airports that take international routes are Yanjing, Shanghai Stock Exchange, and Yangcheng. It can even be said that, as of now, most Chinese people who want to go to the United States have to go to one of these three airports from their place, and then take an international flight to the United States.

This means that behind Li Mu's big plan, it covers not only citizens of four first-tier cities, but people from the whole country, or at least most countries.

It is very likely that when half of the Chinese people are considering traveling to the United States, they will consider where to buy a free travel package from Taobao or where to join a group directly on Taobao, and then start from these three first-tier cities. In this way, the number of potential customers will greatly increase.

In the United States, there are many hub airports and are distributed in a relatively scattered manner. For example, New York, Chicago, Atlanta, Los Angeles, San Francisco, Seattle, etc. are all top-ranked large airports. In theory, from any of these hubs, there are direct flights to Yanjing or Shanghai Stock Exchange.

However, the frequent flights of Americans are comparable to those of Chinese people taking trains. They fly here and there at any time. As they fly more, they will have more experience. Moreover, Americans are backpackers who travel more and more poorly and are very good at calculating. How to use transit to get cheaper travel? Americans are more capable than Chinese people.

When he arrived in Yanjing, most Americans set out from any of the above American hub airports, when he realized that a special plane could save hundreds or even thousands of dollars at a time, it would be difficult for him to resist this attraction.

In theory, if Li Mu could reduce the overall cost of Los Angeles to Yanjing low enough, ordinary tourists from all over the United States might consider purchasing the Los Angeles to Yanjing package provided by Li Mu. In this way, he would cover much more than one state in California.

These travel companies have always thought that Li Mu helped Schwarzenegger to make some political achievements and drive California's tourism revenue because he had a good relationship with Schwarzenegger. However, he did not expect that Li Mu wanted to take advantage of his price advantage and turn California into a core hub for traveling to China across the United States.

This makes this matter even more troublesome.

For these companies, it felt like they had suddenly become enlightened. In addition, Li Mu had unparalleled resources, and after a little consideration, they agreed without hesitation.

So Li Mu took another tournament and obtained the cheapest tourism resources in California.

These tourism companies have a wide range of resources, including tour guides, translations, car use, catering, tickets, amusement projects, and even shopping. The overall cost of this part can give Taobao Qunar more operational space.

When the peak forum was about to close, Li Mu had already incorporated all the companies attending the meeting into the cooperation scope of Taobao Qunar, and at the same time got the lowest price in the industry.

Taobao’s biggest attraction for Chinese and American tourism-related companies is that it helps both sides find a new resource monetization market.

Before this, American tourism companies held a large number of local tourism resources, but their main monetization targets were from the United States, Europe, Australia, Japan and South Korea, and China's population of 1.3 billion. The number of people traveling to the United States every year is so small that it is negligible. Now, Taobao is starting to export more Chinese tourists to the United States, giving them another monetization group.

If this chain is reversed, it will also benefit Huaxia Travel Company.

Whether in the United States or China, the utilization of tourism resources is far from saturated, which means that both markets need more consumers.

However, for Li Mu, rather than letting Chinese tourists go out, he hopes that overseas tourists come in, and at the same time, he hopes that they can release China's great mountains and rivers so that more overseas tourists can know it.

In order to promote the rapid implementation of outbound travel projects as soon as possible, Li Mu invited CCTV's documentary team to organize and produce documentaries of all famous attractions in China, and prepared them to be used on Twitter for publicity. CCTV also felt that this was a good opportunity for overseas people to gain an in-depth understanding of China. He agreed without hesitation, and Li Mu did not even need to bear the production cost.

Afterwards, Li Mu convened Muye Technology and Taobao executives to hold a meeting to sort out the outbound travel service process.

First, we also ask for help from the headhunter company to quickly recruit a group of professional talents in the tourism industry, form a complete tourism team, and be fully responsible for the three stages of the entire service.

The pre-sales phase includes the formulation of tourism plans, customer docking, and helping users apply for visas, especially visa issues. It is not only necessary to help users prepare necessary materials and help users fill in necessary forms, but also to organize users to visit the embassy and consulate to meet the maximum visa-issuance rate;

During the sale stage, it includes customer organization, gathering, grouping, group meeting, translation, and coordination of tourism resources between the two companies.

After-sales phase, including customer return visits, satisfaction surveys, complaint handling and feedback;

Second, the entire business cooperation process, in a word, describes Makino Technology, and Taobao will set up a stage to perform. All costs are connected with Makino Technology and supply companies, and then Taobao will integrate sales, and then settle with Makino Technology. Based on this principle, different plans for travel groups and self-driving tours are formulated, and Taobao will make the decisions and then calculate the pricing.

Li Mu's purpose is to not make a penny in the early stage, just make a balance, subsidize users at the lowest price, and quickly develop the market. If the user feedback is not very active, you can also spend some money to subsidize users. For example, the cost price of a travel plan is 8,000 yuan, and Taobao can subsidize 1,000 yuan per person. First, spend hundreds of millions of yuan to make outbound travel hot, so you won't have to worry about losing money in the future;
Chapter completed!
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