BEIJING: Ctrip.com said here the other day it led a group to acquire a nearly 38 percent stake in eLong Inc for about US$400 million to cement its leading position in China’s booming online tourism market.
Shanghai-based Ctrip, listed on Nasdaq, together with two partners, bought the stake from Expedia, it said in a statement.
The deal will help Ctrip boost revenue and market share in online accommodation booking which eLong has rich experience in, according to market observers.
Ctrip bought the eLong stake because of bullish hopes over China’s online tourism market in the long term, the company said in a statement yesterday.
Chinese travelers are benefiting from relaxed visa policies by several countries in 2015. The top overseas spots for Chinese white-collar visitors include Japan, the US, New Zealand and Australia, said Travelzoo, a travel industry publisher.
In 2014, US-based leading online travel agency Priceline Group Inc unveiled an investment of US$500 million in Ctrip due to higher demand for online tickets and bookings.
In the first quarter, Ctrip’s net loss of 126 million yuan (US$20 million) narrowed from a loss of 224 million yuan in the previous three months. For the second quarter, Ctrip expects to reverse its losses.
