Ctrip sees strong third quarter – Skyscanner is strategic boon
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

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

ctrip0311

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.”

Disclosure

Dominion holds Ctrip in its Global Trends Ecommerce 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
0.0/5 rating (0 votes)

Disclaimer
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.