ELong's CEO Discusses Q4 2011 Results - Question Answer Session Transcript

eLong, Inc. ( LONG)

Q4 2011 Earnings Call

February 23, 2012 7:00 PM ET

Executives

Michael Doyle – CFO

Guangfu Cui – CEO

Analysts

James Lee – CLSA

Fawne Jiang – Brean Murray

Catherine Leung – Goldman Sachs

Alicia Yap – Barclays Capital

Eddie Leung – Merrill Lynch

Lawrence Auriana – Kaufmann Fund

Question-and-Answer Session

Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from James Lee of CLSA. Sir, you may begin.

James Lee – CLSA

Thanks for taking my question. Mike, can you maybe help us understand the framework of your coupon program? Is it a pretty much nationwide program or is it more or less by region? And how do you determine kind of where to offer your program? And is it determined where you see most competition or is it by maybe new targets or new markets you want to go after? Thanks.

Michael Doyle

Sure. So our coupon program has been pretty consistent now for the last six quarters or so in its size and scope. We have coupons at a little more than half of our hotels. The competition of the program is distributed across all provinces and cities in the country, all-star categories and in all key districts within those cities. We’ve done that very deliberately to make sure that we have a coupon product that’s appealing to all customers.

James Lee – CLSA

And maybe as a follow up Mike, maybe can you talk about the program success in terms of conversion rate? How much qualify versus how much people actually use? And maybe you can help us understand where on a regional basis where you are seeing the most conversion. Is it mostly Tier 1 markets or is it mostly Tier 2? Thanks.

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