Which Two Segments Are The Biggest Contributors To Ctrip’s Growth?
The hotel and air ticketing segments are expected to contribute to over 80% of Ctrip’s top line growth till the end of our review period.
Ctrip’s Recent Efforts To Boost The Two Most Important Sectors:
- Beating S&P500 BY 11% YTD, What To Expect From Travelers Stock?
- Up 50% Over The Last 12 Months, Is Hyatt Stock Still Attractive?
- Capital One Stock Gained 44% In The Last 6 Months, What’s Next?
- Up 8% Year To Date As 5G Gains Traction, What’s Next For Verizon Stock?
- Up 32% In The Last 12 Months, Where Is BNY Mellon Stock Headed?
- Rallying 30% YTD, What’s Spurring The Rally In Applied Materials’ Stock?
Let’s take a look at how Ctrip is boosting the growth in its two leading divisions.
Hotels:
- In order to consolidate China’s domestic online travel market, Ctrip bought a ~40% stake in its erstwhile rival eLong from Expedia. It also entered into a partnership with Expedia to expand its global reach.
- Ctrip also completed a share exchange transaction with Qunar’s backer, Baidu. Ctrip can own a 45% stake in one of its biggest rivals, Qunar, post the completion of the transaction.
- The company’s partnership with Priceline had strengthened in 2015 and Priceline currently has the option of owning a ~ 15% stake in Ctrip. This alliance further bolsters Ctrip’s global expansion plans.
- In January 2016, Ctrip made an investment of $180 million in India’s largest OTA, MakeMyTrip, through convertible bonds. In addition, Ctrip can acquire MakeMyTrip’s shares in the open market and own up to a 26.6% stake in the company.
Air Ticketing:
- In April 2016, Ctrip entered into a strategic partnership with China Eastern Air Holding Company, one of China’s biggest air transportation groups and the parent company of China Eastern Airlines. Ctrip invested RMB 3 billion in China Eastern Airlines. The Chinese OTA might increase its ownership stake in the airline over the next twelve months and might be in a position to appoint a director to the airline’s board.
Have more questions about Ctrip? See the links below.
- What Is Ctrip’s Revenue And EBITDA Breakdown?
- How Has Ctrip’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- Ctrip Q4 2015 Pre-Earnings Report
- What Drove Ctrip’s Revenue Growth And Led To Its EBITDA Decline Over The Last Five Years?
- Ctrip: Year 2015 In Review
- Ctrip Q1 2016 Earnings Preview
- Where Can Ctrip’s Growth Come From In The Next 5 Years?
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)