Jun 05, 2019 (China Knowledge) - China’s largest online travel agent, Ctrip is forecasting international business to outpace its domestic expansion within five years. Chief Executive Jane Sun said that they are expecting international business will bring more than half of its total revenue in the near future.
The optimism was brought about by the growing outbound tourism market in China and the rapid increase of travel websites such as Skyscanner that are owned by the group.
Ctrip, which holds a 60% market share of the Chinese travel market, also controls the Qunar and Trip.com online brands. They are also the largest shareholder of MakeMyTrip.com, an India online travel agent company. According to its earnings statements, 35% of Q1 revenue of RMB 8.2 bln was generated from international business.
The Nasdaq-listed company is also tapping on the increasing trend of Chinese nationals holidaying abroad. China, is already the world’s largest outbound travel market, is set to expand further. A McKinsey report in November is predicting outbound traffic of 160 million by 2020.
Ctrip has been very aggressive in recent years, having made multiple acquisitions. The company is now betting on growth from its existing assets. Should the strategy go as planned, international business will rake in more than half of its revenue within five years.
Within China, the company is growing its domestic business by adding stores and expanding hotel room inventory in lower-tier cities as new rail services improve ease of access across the country. Ctrip is also looking at expanding their offline presence by providing hotel owners to load their rooms inventory on the company’s platforms.
Meanwhile, tech giants such as Meituan Dianping and Alibaba Group Holding have been scaling their presence in the tourism sector as well.
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