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
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.“
Dominion holds Ctrip in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.