Priceline expands China reach with stake in Ctrip

Wednesday, 07 Aug, 2014 0

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."

below social share icons

TravelMole Editorial Team

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.

Consisting of the three Maritime provinces of New Brunswick, Nova Scotia, and Prince Edward Island as well as Newfoundland and...

We understand the importance of personal touch We do things a bit differently at Eventsquid. We know that we could...

To say Sweden is fit for a fairy tale is not overstating it—the palaces dazzle, the boreal forests are brimming...

Here at Elegant Resorts, luxury travel is in our DNA. True pioneers in the industry, we were the first specialist...

City Cruises is a leading operator of sightseeing, dining and charter services operating in London, York and Poole. We offer...

Swallows and Amazons is a Brazilian adventure tour company run by the husband and wife team of Tania and Mark...

The Polish Tourism Organisation (Polska Organizacja Turystyczna – POT) is one of several dozen national tourism organisations operating in the...

Arival advances the business of creating amazing in-destination experiences. We provide events, insights, and community for creators and sellers of...

For over 18 years and over 106 completed events, the Travel & Adventure Show has connected over 2.5 million travel...

AXA Assistance specializes in best-in-class cost containment, health and travel services. Over 60 years of experience combined with a US and...

Discover Sarawak Revealing a side of Asia unlike anywhere else, Sarawak offers an alternative for those seeking humble authenticity far...

River cruising is a treat for the senses, allowing you to see, touch, feel and experience the world like never...

We make travel accessible for everyone We believe everyone should be free to experience the world. For us, there’s no...

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels...

At Visit California, our mission is to develop and maintain marketing programs – in partnership with the state’s travel industry...

Our leadership is bold. Our agility thrives on open innovation and we embrace the new, whether it’s diversity, trends, challenges....

With long periods of Thailand’s History, according to evidences and studies, Sukhothai was the first kingdom of Thailand. At that time, an early Thai...