Priceline expands China reach with stake in Ctrip
Priceline Group hopes to further extend its reach in the Chinese market by investing up to $500 million in rival online travel agent Ctrip.com.
The cash injection will be made through a convertible bond and an agreement is in place allowing Priceline to buy up to 10% of Ctrip shares on the open market.
Current share price gives Ctrip a market value of $7.8 billion, according to Bloomberg.
Priceline will also be allowed to appoint an observer to the Ctrip board.
The two companies are also intensifying a 2012 cross-promotion agreement which will expand the availability of hotel rooms and other products on each platform.
Ctrip users will gain access to Priceline’s rental cars and newly acquired restaurant booking service while Priceline customers will have a wider choice of Chinese hotel room inventory, an area where Priceline is currently underrepresented according to CEO Darren Huston.
"Through this partnership, we have an opportunity to further help the world experience China, and China experience the world," Huston said.
"We are eager to build upon what has already become a great partnership, and thrilled to be able to offer our customers even more hotel options in China."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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