China’s Ctrip Will Focus on Domestic Hotels Following International Spending Spree
Skift Take
After making a string of investments, Ctrip may be keeping its gunpowder dry in 2017 — at least according to our interpretation of the latest comments of its executives. That will give it a chance to digest its recent acquisition of Skyscanner and to deepen its hotel coverage within China.
China's largest online travel group Ctrip may pause in its long-running spending spree on companies of all sizes, including last year's $1.74 billion acquisition of Skyscanner and strategic investments in three U.S. tour operators.
During the company’s fourth-quarter earnings call Thursday morning in Shanghai, Ctrip executives gave hints, though not explicit statements, about a more inward focus.
Recently appointed chief executive Jane Jie Sun said Ctrip's top priority in 2017 was to focus on "second-tier cities" in China. These are markets it has neglected so far because the average nightly rates are only $15 to $17 and commissions and margins are lower than in the three-star to five-star hotel mainstay of Ctrip's business.
But this year the company feels it needs to prevent companies like Airbnb and Alibaba from gaining traction in these smaller markets. It plans to boost its hotel listings and ramp up its marketing spending to attract gues
