Ctrip reports strong growth

September 4, 2017 by  
Filed under News, North Asia, tour operators

SHANGHAI, 4 September 2017: China’s mega travel corporation Ctrip reports strong financial results in the second quarter of 2017 with net revenue increasing 45% year-on-year to RMB6.4 billion (USD946 million).

The unaudited results revealed Ctrip’s accommodation reservation business delivered healthy growth. Revenue for the second quarter of 2017 reached RMB2.3 billion (USD341 million), representing a 30% increase from the same period of 2016

The transportation ticketing business also continued its strong growth. Revenue for the second quarter of 2017 reached RMB3.0 billion (USD441 million), representing a 49% increase from the same period of 2016, primarily driven by an increase in ticketing volume and the consolidation of Skyscanner’s financial results since December 31, 2016.

Packaged-tour revenue for the second quarter of 2017 reached RMB612 million (USD90 million), representing a 29% increase from the same period of 2016, primarily driven by an increase in volume growth of organised tours and self-guided tours.

Corporate travel revenue for the second quarter of 2017 reached RMB199 million (USD29 million), representing a 36% increase from the same period of 2016, primarily driven by expansion in travel product coverage.

Gross margin was 82% for the second quarter of 2017, compared to 72% for the same period of 2016, and 80% for the previous quarter.

Ctrip and Qunar have opened over 400 offline retail stores by the end of the quarter with approximately 200 more in the pipeline.

Skyscanner has launched its “direct booking” business, which introduces travellers to a seamless booking experience. Conversion rates of mobile traffic for direct-booking partners have increased by approximately 50%.

“We are pleased with the strong operating and financial results in the second quarter,” said chief executive officer, Jane Jie Sun.

“Ctrip maintained healthy revenue growth and achieved continual improvement in operating efficiency. The group will remain focused on operating fundamentals that create value for our customers and suppliers. We are confident that Ctrip will generate long-term value for shareholders in the years to come.”

Net revenue for the second quarter of 2017 increased 5% from the previous quarter. For the third quarter of 2017, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 35 to 40%.

(Source: PRNewswire)

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