19 August 2008

Travellers delaying China trips: Ctrip

BEIJING - Ctrip.com International, Ltd. has posted a 35 percent rise in its second-quarter net income.

The online travel agency revealed that its net income was US$17 million, up more than a third from the same period in 2007, and a 21 percent increase from the previous quarter.

Net revenues were US$55 million, up 30 percent year-on-year.

"Although the travel industry in China encountered many difficulties during the second quarter of 2008 after the Sichuan earthquake, Ctrip delivered solid revenue and earnings growth," said Min Fan, CEO, Ctrip.

Jane Sun, chief financial officer, said many leisure and business travellers were delaying trips until after the Olympic Games.

"So we've seen the market has slowed down during the Olympics," she said. "But our expectation is in the fourth quarter all the business and travel volume will be back to normal."

Ctrip recently signed an agreement to acquire a majority equity stake in one of the leading software companies, specialising in hotel property management systems (PMS) in China.

This acquisition is expected to enhance Ctrip's cooperation with hotels and increase its operational efficiency. Additionally, Ctrip will be able to support the PMS sales through its hotel networks.

For the third quarter of 2008, Ctrip expects the year-on-year net revenue growth rate to be in the range of 15-20 percent.

Tang Lan, VP of marketing, Ctrip, is scheduled to speak during EyeforTravel's Travel Distribution and Sales China 2008 Conference in Beijing on September 24-25.

For information, go to http://events.eyefortravel.com/tdchina/agenda.asp

Reece Gladstone at reece@eyefortravel.com +44 207 375 7158