Disruptors
Those who traverse cycles understand the weight of time.
Liang Jianzhang
“The downturn in the travel industry will eventually pass, and survival is victory.”
In Q1 of 2020, Ctrip had a net loss of 5.4 billion yuan, and the amount of chargebacks reached 31 billion. Founder Liang Jianzhang did two things: bear the loss of 1.2 billion in unsubscriptions and go live in person. He proved with actions that the value of a company in a crisis comes first from shouldering its responsibilities. In the first quarter of 2020, Ctrip had a net loss of 5.4 billion yuan. The amount of chargebacks amounted to 31 billion yuan, the number of incoming phone calls surged, reaching a peak value of dozens of times that of normal times, and 15,000 customer service staff worked continuously overtime. Founder Liang Jianzhang said: "This is definitely the year we have lost the most, at least for a quarter." He didn't back down. He chose to throw himself into the center of the storm. 1. Peak: Pioneer of China’s Online Travel In 1999, Liang Jianzhang founded Ctrip, officially entering the online travel track. With refined services, standardized operations and online traffic layout, Ctrip quickly seized the market and successfully landed on Nasdaq in 2003, becoming the first domestic OTA company to enter the capital market. Over the years since then, Ctrip has been firmly at the forefront of the industry. Its business covers the entire chain of accommodation, travel, vacation, and business travel. Its territory has extended to many places around the world, firmly occupying the core position of the online travel industry. After his career steadily reached the top, Liang Jianzhang took the initiative to retire twice, leaving daily operations to his team, and turned to study demography. He focused on issues such as population structure, fertility policy, and long-term social development for a long time, and continued to export his views as a scholar. In the eyes of the outside world, he has long since transcended his role as a mere entrepreneur and has taken on the dual roles of a business operator and an observer of public issues. he was
Liang Jianzhang
Asia's "Cover Character"・Business Rebel
Total Issue 015 - ACF-NXZ-2026
Asia cover figure·Rebel in the business world｜Liang Jianzhang: 31 billion chargebacks and 11 live broadcasts, through the darkest moment of the tourism industry
【Abstract】
In Q1 of 2020, Ctrip had a net loss of 5.4 billion yuan, and the amount of chargebacks reached 31 billion. Founder Liang Jianzhang did two things: bear the loss of 1.2 billion in unsubscriptions and go live in person. He proved with actions that the value of a company in a crisis comes first from shouldering its responsibilities.
In the first quarter of 2020, Ctrip had a net loss of 5.4 billion yuan.
The amount of chargebacks amounted to 31 billion yuan, the number of incoming phone calls surged, reaching a peak value of dozens of times that of normal times, and 15,000 customer service staff worked continuously overtime.
Founder Liang Jianzhang said: "This is definitely the year we have lost the most, at least in a quarter."
He didn't back down. He chose to throw himself into the center of the storm.
1. Peak: Pioneer of China’s online tourism
In 1999, Liang Jianzhang founded Ctrip, officially entering the online travel industry. With refined services, standardized operations and online traffic layout, Ctrip quickly seized the market and successfully landed on Nasdaq in 2003, becoming the first domestic OTA company to enter the capital market. Over the years since then, Ctrip has been firmly at the forefront of the industry. Its business covers the entire chain of accommodation, travel, vacation, and business travel. Its territory has extended to many places around the world, firmly occupying the core position of the online travel industry.
After his career steadily reached the top, Liang Jianzhang took the initiative to retire twice, leaving daily operations to his team, and turned to study demography. He focused on issues such as population structure, fertility policy, and long-term social development for a long time, and continued to export his views as a scholar. In the eyes of the outside world, he has long since transcended his role as a mere entrepreneur and has taken on the dual roles of a business operator and an observer of public issues.
He was once the most prosperous man in China's online travel industry. Then he turned to studying the population.
Good times depend on the scale. But the real test comes in adversity.
2. Darkest: When the Storm Comes
At the beginning of 2020, the epidemic suddenly broke out, offline travel came to a complete halt, and the tourism industry instantly came to a standstill. As an industry leader, Ctrip was the first to encounter a large-scale wave of cancellations. The amount of cancellations across the entire platform reached 31 billion yuan. The number of incoming calls for user inquiries and cancellations and changes skyrocketed. All 15,000 customer service staff were on duty and continued to work overtime to cope with unprecedented business pressure.
In order to protect the rights and interests of users, Ctrip has initiated a major disaster protection fund of 200 million yuan and proactively bears the losses caused by user cancellations. Financial report data shows that in Q1 2020, Ctrip's revenue dropped 42% year-on-year, with a net loss of 5.4 billion yuan; if the 1.2 billion yuan in subsidies for unsubscribed users is excluded, the company's business level is close to breaking even. This loss was not caused by poor management, but by the company's proactive choice to assume social responsibility and maintain the bottom line of user trust. Affected by the industry environment, Ctrip’s stock price fell sharply, and its market value evaporated by nearly US$5.5 billion. Under the crisis, Liang Jianzhang and CEO Sun Jie announced that they would perform their duties with zero pay, and all senior executives implemented a half-pay system to stabilize the foundation of the team and the company by giving away profits.
Liang Jianzhang said frankly: "This is definitely the year we have lost the most, at least for a quarter."
Revenue can fall, but the bottom line cannot be lost.
31 billion in chargebacks, he chose to bear it himself.
Loss is not caused by poor management, but by choosing to take responsibility.
3. Retrograde: 3,000 kilometers from scholar to “anchor”
At a time when the industry was in an overall downturn and companies were under pressure to move forward, Liang Jianzhang put down his identity as a demographer, broke the inherent image of an entrepreneur, and personally started live streaming to promote the recovery of the tourism industry. In just 2 months, he traveled to 31 cities across the country and completed 11 live broadcasts, traveling across the north and south.
In order to ensure the effect of the live broadcast, he personally visited the locations, selected products, and designed the live broadcast image for each live broadcast. He successively appeared in ancient costumes such as Tang Bohu, Qin Shihuang, and Cao Cao. He also tried face-changing, seaweed dance and other people-friendly forms to shorten the distance with consumers. The 11 live broadcasts brought in a total of nearly 400 million yuan, and sold 520,000 rooms for more than 230 high-star hotels; within one minute of the live broadcast, the platform GMV exceeded 10 million yuan. He insisted on personally experiencing all the recommended products. After several high-intensity live broadcasts, he lost weight but always maintained a full working condition.
Talking about the pressure on business during the epidemic, Liang Jianzhang said bluntly: "Our unsubscription business volume was more than ten times the highest volume in our history, and we have managed to do so."
He can be an academic or a CEO. But when the company needs it, he can be any role.
2 months and 31 cities, either live broadcasting or on the way to the live broadcast.
4. Perseverance: In the three cold winters, he did not have any large-scale layoffs
Three years after the epidemic, the tourism industry continues to be in a cold winter. A large number of peers have reduced their business and staff, and the overall confidence of the industry is sluggish. Faced with an operating environment that continues to be under pressure, Ctrip has refrained from large-scale layoffs. It has controlled costs through zero salary for senior executives, optimized the performance of all employees, and streamlined its business structure to maximize the retention of its core team and talent system.
While reducing expenditures, the company has not given up on its long-term layout, continues to increase investment in technology research and development, promotes global business expansion, and adheres to long-termism. At the same time, it took the lead in launching the "Tourism Revitalization V Plan" to link multiple resources from hotels, scenic spots, and platforms to boost the overall confidence of the industry. Liang Jianzhang has always maintained a firm judgment: "Travel is an urgent need, and recovery will only be late, not absent."
The market will fully recover in 2023. Ctrip will quickly achieve business rebound, gradually repair its performance, and enter a new growth cycle by relying on its complete supply chain system and brand trust accumulated over the years.
Those who do not abandon or give up in the storm will be the first to stand up after the storm subsides.
Not all companies can survive three years. Those who survived are called Ctrip.
5. Enlightenment: Retrograde people traveling through cycles
From an industry pioneer to a crisis guardian, Liang Jianzhang has redefined the core of a retrograde figure in the business world during the industry test of the epidemic. His business creed is simple and firm: carry on when times are low and take responsibility in times of crisis. Don’t speculate or evade, guard the enterprise with responsibility, and drive the industry with resilience.
In 2024, the tourism market will continue to recover, and Ctrip will deliver impressive results. The annual net profit will reach 17.2 billion yuan, a year-on-year increase of 72%, achieving a comprehensive recovery in performance. Liang Jianzhang did not stop. While continuing to delve into population research issues, he led Ctrip to make steady progress towards the world's top tourism brand.
Someone asked him, why can Ctrip survive?
His answer is simple: no retreat.
He shouldered the chargeback of 31 billion. He shouldered the 5.4 billion loss. In 11 live broadcasts, he carried it.
The responsibility of an entrepreneur is not to always win, but to survive through cycles.
The storm will stop, but the rebels will not go away.
【Data source】
About Ctrip's founding in 1999 and NASDAQ listing in 2003: Ctrip Group's official development history and NASDAQ listing announcement.
Regarding Q1 2020 net loss of 5.4 billion yuan and revenue down 42% year-on-year: Ctrip’s first quarter 2020 financial report.
Regarding the chargeback amount of 31 billion yuan, the surge in incoming phone calls, and the continuous overtime work of 15,000 customer service staff: Ctrip official disclosure and media reports such as Caijing.com and Sina Finance.
Regarding Liang Jianzhang and CEO Sun Jie announcing zero salary and half salary for senior executives: Ctrip internal notice and public reports.
Regarding the 1.2 billion yuan subsidy for unsubscribed users: Ctrip’s 2020 Q1 financial report notes and management discussion.
Regarding Liang Jianzhang’s 2 months of traveling to 31 cities, completing 11 live broadcasts, and bringing in goods worth nearly 400 million yuan: Ctrip’s official live broadcast battle report and media reports such as 36 Krypton and Global Travel News.
Regarding Liang Jianzhang’s live broadcast appearances (Tang Bohu, Qin Shihuang, Cao Cao, Face Changing, Seaweed Dance, Crosstalk Coat, etc.): live broadcast public materials and media reports.
Regarding Ctrip’s net profit of 17.2 billion yuan in 2024, a year-on-year increase of 72%: Ctrip’s fourth quarter and full-year financial report for 2024.
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