Ctrip.com International is a leading online travel service provider in the Chinese mainland. Since its inception in 1999, the company has grown to become one of the best-known travel brands in China with the largest transaction volumes in the country. CTRP is the leader in the Chinese online travel market, with a ~56% market share. It’s followed by eLong’s 10% market share. CTRP acquired a 37.6% stake in eLong in May 15. Next comes TongCheng’s 6% market share.
The company provides accommodation reservation, transportation ticketing, packaged tours, and corporate travel management for its customers. The company offers its services through an advanced transaction and service platform consisting of its mobile apps, websites, and centralized, toll-free, 24-hour customer service center.
The company aims to capture the underserved yet fast-growing segment of China’s frequent independent travelers. This approach contrasts to other travel services providers that cater to group travelers.
The company provides the following services.
- The site aggregates hotel and flight information to help business and leisure travelers make informed and cost-effective bookings.
- The site helps customers book vacation packages and guided tours.
- The site provides corporate travel management services that help corporate clients effectively manage their travel requirements.
Segments and reach
CTRP conducts its business across 17 major cities in China. It reports business details under the following segments.
- Accommodation Reservations
- Transportation Ticketing
- Packaged Tour
- Corporate Travel
- Other Products and Services
Ctrip International (CTRP) is one of the top ten holdings of the CSI China Internet ETF (KWEB), accounting for 9.1% of its portfolio. CTRP’s rivals Qunar (QUNR), Tuniu (TOUR), and eLong (LONG) form 1.5%, 0.4%, and 0.2% of the holdings in KWEB, respectively. Major competitors in the United States include Priceline (PCLN) and Expedia (EXPE).
Next, we take a look at the company’s various segments in detail.