Ctrip sees strong third quarter – Skyscanner is strategic boon
Chinese online travel giant Ctrip reported strong figures for the third quarter of 2017. The company saw net revenue jump to 42% year on year, beating analysts’ expectations by 4%. The company saw some strong underlying figures too – most notably unexpected growth in both its accommodation and travel segments (36% and 41% respectively, against the third quarter of 2016).
Ctrip’s share price is up by 17% so far in 2017
SOURCE: Yahoo Finance
According to travel industry publication Skift.com, one of Ctrip’s greatest assets is Skyscanner, which it acquired a year ago. Skyscanner was the driving force behind Ctrip’s transportation-ticketing business in the third quarter, as it experienced an “almost three-fold” rise in direct bookings between May and September, according to chief financial officer Cindy Wang.
However, direct bookings (which, in the west, we would call “instant” bookings) are only one of Skyscanner’s strengths. The other big strength, according to Skift.com, is its ability to deliver international growth.
Jane Sun, Ctrip’s CEO, made the following comment on the company’s earnings call: “In the past 18 years, thanks to the hard work and the dedication of our employees. Ctrip has grown into a leading and attractive player in the travel market. We have overcome many difficulties and challenges and have come out stronger each time. We will always uphold the highest level of diligence and integrity and strive for long lasting value for our customers, partners and investors.”
Dominion holds Ctrip in its Global Trends Ecommerce Fund.
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