Sep 11, 2019 (China Knowledge) - Ctrip (CTRP), China’s leading travel agency, a provider of online travel search and reservation services, such as hotels, flight tickets, and package tours, saw its overseas incomes made up 35% of its revenue.
As the Chinese travel market becomes more competitive and saturated, Ctrip’s revenue growth has slowed significantly over the past few quarters. During the Q2, Ctrip increased its net revenue by 19% from a year earlier to RMB 8.7 bln (USD 1.3 bln), slightly beating analysts’ expectations of RMB 8.6 bln.
The international hotel and air business, in particular, had robust momentum, according to the company, more than doubling the overall growth of Chinese outbound travel traffic year over year. Revenue generated from international business, including both Chinese travelers going overseas and travelers from other countries using its services, accounted for more than 35% of total revenue in the second quarter.
For the Q2, Ctrip management expects net revenue to grow at a YoY rate of 10% to 15%. The CEO of Ctrip said that he is confident and excited about the long term future for the travel industry in China and the global market.
The acquisition of 42.5% stake in MakeMyTrip, an India's travel agency, made Ctrip the largest shareholder. It also signed an agreement with the East Japan Railway in April this year to expand its business in the popular destination frequented by Chinese travelers.
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