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Ctrip boost Q1 sales

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SHANGHAI, 25 May 2018: International air ticketing accounted for 40% of Ctrip’s airline related revenue in its first quarter performance the Chinese travel giant reported Wednesday.

Excluding sales on Skyscanner, the group’s online booking site reported strong air ticketing sales indicating the company was still riding a wave of Chinese outbound bookings and expanding its customer based beyond China.

Ctrip.com International Ltd reported strong financial results in the first quarter ending 31 March with net revenue up 11% year-on-year to RMB 6.7 billion (USD 1.1 billion).

Net income attributed to Ctrip’s shareholders increased 19 times year-on-year to RMB 1.1 billion (USD 170 million) compared with RMB52 million in the same period in 2017.

Ctrip’s international businesses continued to show robust growth momentum.

In the air ticketing segment, Skyscanner’s direct booking programme continues to gain momentum, delivering revenue growth of over 600% year-on-year in the first quarter.

Ctrip increased its presence in China’s lower-tier cities, while gross merchandise volume at offline stores grew around 50% year-on-year.

Commenting on the results, chief executive officer, Jane Sun said: “We are in a good position to capture growth in the travel industry, both domestically and globally.”

Ctrip reported  solid performance in accommodation reservations with revenue reaching RMB 2.5 billion (USD 397 million), up 23% from the same period in 2017.

Transportation ticketing revenue was RMB 2.9 billion (USD 460 million), which remained consistent with the same period of 2017.

Packaged tour revenue gained 18% to reach RMB 834 million (USD 133 million) primarily driven by a mix of organised tours and self-guided tours.

Corporate travel revenue improved 25% to reach RMB180 million (US$29 million), driven by expansion in travel product cover.

Gross margin was 82% for the first quarter of 2018, compared with 80% in the same period in 2017.

Product development expenses increased by 10% to reach RMB 2.2 billion (USD 344 million) from the same period in 2017, primarily due to the increase in product development personnel related expenses.

Sales and marketing expenses increased by 11% to RMB 2.1 billion (US$333 million). General and administrative expenses increased by 1% to RMB 646 million (USD 103 million).

Income from operations was RMB 590 million (USD 95 million), compared with RMB374 million in the same period in 2017.

The operating margin was 9% for the first quarter of 2018, compared with 6% in the same period in 2017, and 5% in the previous quarter.

Net income attributable to Ctrip’s shareholders for the first quarter of 2018 was RMB 1.1 billion (USD 170 million), compared with RMB 52 million in the same period in 2017.

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