How Did The Brexit Decision Impact Ctrip So Far?
The Brexit, or the decision by the U.K. to leave the European Union, might have made a lot of travel companies anxious, but not Ctrip. According to Ctrip’s CEO, James Liang, the Brexit decision so far impacted Ctrip’s business in a positive manner. Since Ctrip primarily deals with the domestic Chinese travelers, the demand for outbound travel from China to the U.K. has increased post the Brexit decision. This is because the U.K. has become a more affordable destination for the Chinese travelers with the significant depreciation of the pound sterling against the Chinese Yuan post the Brexit announcement.
Post Ctrip’s consolidation efforts by buying significant stakes in its biggest rivals, Qunar and eLong, the Chinese online travel industry’s aggressive pricing strategies to combat competition have been reduced considerably. Hence, along with a surge in outbound travel, the reduction in pricing wars will definitely help boost Ctrip’s bottom line further. In 2015, Ctrip’s revenues increased by 42% year-on-year to reach ~$1.8 billion. Along with this, Ctrip’s bottom line (which remained dampened in 2014) also showed considerable improvement. Its net income attributable to shareholders increased by 900% y-o-y in 2015 to reach ~RMB 2.5 billion. We expect similar trends to follow in fiscal 2016.
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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?
- Which Two Segments Are The Biggest Contributors To Ctrip’s Growth?
- How Fast Is Ctrip’s Hotel Revenue Growing?
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