Erinome：Hello dear friends! Welcome to our podcast. Today we are going to talk about a hot topic: Ctrip is being investigated for anti-monopoly. Have you heard about this, Enceladus?  

Enceladus：Oh right! I saw the news last week. The market regulator started the investigation. But why? What did Ctrip do?  

Erinome：Hmm, let’s start with how Ctrip makes money. They mainly get money from two ways: ads and commissions. Ads are like Douyin’s promotion, but commissions are more important here.  

Enceladus：Commissions? Like, they take money from hotels?  

Erinome：Yes! There are three types. The first is "normal cooperation" — about 10% commission. Hotels set their own prices, but Ctrip gives almost no traffic support. Just a "channel fee".  

Enceladus：Oh, so no help with getting customers. What about the second type?  

Erinome：Second is "gold cooperation" — 12% commission. Hotels must promise their price on Ctrip is at least 5% lower than other platforms. Then Ctrip helps them get more customers, shows them first.  

Enceladus：Wow, so lower price for more traffic. And the third?  

Erinome：Third is "special cooperation" — 15% commission. Hotels must be exclusive to Ctrip, not on other platforms. Then Ctrip gives the biggest traffic support, even puts them at the top.  

Enceladus：Oh! That sounds like "you can only work with me". Is that the problem?  

Erinome：Probably! Because in 2021, Alibaba was fined 18.2 billion yuan for similar "exclusive cooperation". They told merchants: sell only on Taobao, not JD or Pinduoduo.  

Enceladus：Oh right! So Ctrip’s "special cooperation" is like Alibaba’s "choose one from two"? That’s against the anti-monopoly law?  

Erinome：Yes! And hotels can’t say no easily. You know why? Hotels have "perishable inventory".  

Enceladus：Perishable inventory? What’s that?  

Erinome：Like hotel rooms. If a room isn’t sold tonight, it’s gone forever. You can’t save it for tomorrow. So hotels really need to fill rooms every day.  

Enceladus：Oh no! So if Ctrip says "work with me exclusively, or I won’t send customers", hotels have to agree? Otherwise, rooms stay empty and they lose money.  

Erinome：Exactly! Some people say Ctrip’s real commission is 20-30% because hotels have to buy ads to get traffic. It’s like "pay more, or your rooms stay empty".  

Enceladus：That’s sad. What about "killing熟" (shā shú)? You know, giving higher prices to old customers. Is that why Ctrip is being investigated?  

Erinome：Hmm, maybe not. Some people think so, but big platforms probably don’t do it. Why? Because it’s too risky. Two friends check prices on their phones — if different, everyone will know. Then big trouble with regulators.  

Enceladus：Oh, right! Then why do prices sometimes look different?  

Erinome：Maybe "Apple tax" — Apple takes 30%, so some platforms charge more on iPhones. Or coupons: new users get bigger discounts, old users get smaller ones. Or prices change quickly, like flight tickets.  

Enceladus：I see. So what will happen next? Will Ctrip be fined?  

Erinome：Likely! Alibaba was fined 4% of its sales. Ctrip’s 2024 sales were about 53 billion yuan, so maybe 2 billion yuan fine. Not as big as Alibaba, but still a lot.  

Enceladus：What整改 (zhěnggǎi) will Ctrip do? Like, change rules?  

Erinome：Yes! They’ll probably stop "exclusive cooperation" and make traffic rules more clear. Then, other platforms like Meituan or Feizhu might give hotels more subsidies. So maybe we can buy cheaper hotel rooms in the next six months!  

Enceladus：Wow, that’s good for us! Will this change the travel industry?  

Erinome：Probably not much. Ctrip is still the biggest. Market dominance is from their business model, not just rules. Hotels might use more channels: Ctrip for sales, Xiaohongshu for ads, Douyin for live streams. But Ctrip’s position won’t change easily.  

Enceladus：So how to solve high commissions? Just wait for regulators?  

Erinome：No, competition is more important. If Meituan charges too much, JD can try to take over. If Didi is expensive, Gaode can compete. As long as there’s competition, companies can’t be too垄断 (lǒngduàn).  

Enceladus：That makes sense. So knowing all this… what’s the use for us?  

Erinome：Haha, maybe just more topics to chat with friends at lunch! Business is interesting, right?  

Enceladus：Yes! Okay, that’s it for today. Let’s talk again next time. Bye everyone!  

Erinome：Bye!