Ctrip sees “over 70%” of bookings made online, looks to international market
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Ctrip sees “over 70%” of bookings made online, looks to international market

Chinese travel giant Ctrip is looking to expand beyond the online travel agent space to become a one-stop shop for everything from hotel reservations and transportation ticketing to package tours and corporate travel management. In a recent interview, the company’s general manager of strategic cooperation & marketing innovation, Kevin Guo, explained some of the ways in which the company is looking to accomplish that feat.

Ctrip’s share price has risen by 8% year to date

graph 2203 ctrip

SOURCE: Yahoo Finance

One of the first points Guo makes is that Ctrip has been on a five-year quest to become a mobile first company. Worldwide, mobile browsing is becoming a fixture in Ecommerce. He said:

“Over 70% of Ctrip bookings are done by mobile. Convenience is what consumers are always pursuing. Mobile phones are so convenient and we don't see another piece of equipment replacing them in the near future. Ctrip started with PC-based products, and when mobile was becoming more important, we built all our product, business and sales strategies around mobile. Nowadays we first develop a product for mobile then transfer it to the PC if needed. I believe PCs are in decline and will be replaced in the long term.”

Looking towards 2018, Guo says that global market share is the company’s priority: “Our foremost priority is internationalization. We aim to achieve this objective via different approaches: acquiring local brands, like Skyscanner in Europe and MakeMyTrip in India that we acquired in 2016, and we are studying some mature tourism companies as targets in Australia and the US; as well as building our own brand. In November 2017, in an important step in our globalization strategy, we acquired the US travel research website Trip.com and rebranded it as our global brand website."

“Today if you open any of our overseas websites, you’ll be redirected to this website. In terms of geographical zones, we’re already quite well established in the Asia Pacific region, but we wish to extend our reach beyond to the US and Europe and to further explore the high consumption markets in tourism.“

Disclosure

Dominion holds Ctrip in its Global Trends Luxury Fund.


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