Corporate travel: Segment overview
Ctrip International’s (CTRP) Corporate Travel segment provides transportation ticket booking, accommodation reservation, and packaged-tour services to corporate clients. The company designed Corporate Travel Management Systems—an online platform aimed at providing corporate clients with all the information they need in one place, including online booking, online authorization, online inquiry, and travel reports.
CTRP also provides add-on services for corporate clients such as travel data collection and analysis, industry benchmarks, cost saving analysis, and travel management solutions.
Ctrip International leverages its strong online presence to offer online advertising services too. The company also sells property management system and related maintenance services to customers. Although these services don’t contribute much to the company’s revenues, advertising revenues have undergone sustainable growth in recent quarters.
Although the Corporate Travel segment currently forms about 4% of Ctrip’s total revenues, it’s seen a strong response from corporate clients in the country. It underwent 32% compound annual growth in the last five years from $19.6 million in 2010 to $60.2 million in 2014.
Ctrip International’s (CTRP) US rivals include Expedia (EXPE), TripAdvisor (TRIP), and Priceline (PCLN). Ctrip International (CTRP) is one of the top ten holdings of the CSI China Internet ETF (KWEB), with 9.1% of the portfolio.