Priceline invests in Chinese online agency

Priceline Group is to invest $500m in China’s largest online travel company Ctrip.

Priceline, which owns Booking.com and Agoda, has also won the rights to buy Ctrip shares over the next 12 months to take its holding to up to 10%.

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.  

Under the deal, the two companies will expand an existing agreement to cross-promote each other’s hotel room inventory.

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 chief executive Darren Huston.

"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," said Huston.

"Travel to and from China is growing rapidly, and through this partnership, we have an opportunity to further help the world experience China, and China experience the world."