Priceline and Ctrip announced an investment cooperation agreement

Abstract: August 8 morning, Yi Long Travel network released the second quarter of 2014 earnings. In the earnings communication meeting, Art Dragon CEO Cui said the U.S. online travel giant Priceline and Ctrip announced the investment cooperation, will not give the arts dragon and the Chinese market has a great impact. While the needle

August 8 morning, Yi Long Travel network released the second quarter of 2014 earnings. In the earnings communication meeting, Art Dragon CEO Cui said the U.S. online travel giant Priceline and Ctrip announced the investment cooperation, will not give the arts dragon and the Chinese market has a great impact.

And in response to the rumors of the acquisition of the Art Dragon, Cui made it clear that the art Dragon will still stick to the hotel reservation business, and will continue to operate independently now and in the future.

The marriage between Priceline and Ctrip has little influence on the pattern

U.S. online travel giant Priceline and Ctrip announced the investment cooperation Agreement, Priceline will invest 500 million U.S. dollars to Ctrip to expand the two companies in China's entry-exit travel business.

In this respect, Cui said, although Ctrip and Priceline have just reached the capital level of cooperation, but in fact Ctrip has used Priceline inventory for many years, both sides of the previous agreement will expire, so in the renewal of the same time with a new capital cooperation.

Cui said that prior to this cooperation, Priceline has already had its own signing team in China, and that Agoda and booking have already entered China, but at present, the entry of Priceline's business does not have a greater impact on the business level of the Arts Dragon.

Compared with Ctrip and Priceline, Cui that the art Dragon also has a hotel inventory from the major shareholder Expedia, and that the company has been using Expedia's International Hotel inventory since Expedia invested in the Art Dragon.

Art Dragon continues to operate independently

Priceline and Ctrip before the cooperation, there have been rumors that Ctrip plan in the form of equity swap, the acquisition of AOL Travel company Expedia Holdings of the 65% Art Dragon Travel network shares, the deal on the Art Dragon's valuation of about 800 million to 1 billion U.S. dollars, a premium of about 33%.

At that time, the impact of the news, the Arts dragon in the last two weeks, the stock price rose more than 60%, the night of June 30 is a 22% increase, and Ctrip's share price is higher, its market value once reached a record of 8.8 billion dollars.

However, along with the US online travel giant Priceline and Ctrip announced investment cooperation agreement reached, Ctrip together with Art dragon is almost impossible, art Dragon shares also fell 7.26% on the same day.

"In addition, Expedia's China-contracted team has been working with the art Dragon to synthesize a team that provides inventory for the art dragon purchase and supplies inventory to Expedia, while Expedia is also a hotel selling the art dragon in China." "

For the previous variety of acquisition rumours, Cui again made clear that Expedia's year has long issued a statement will hold the art dragon, but also support the Arts Dragon to achieve the hotel book the first place to do any work, Art Dragon is now independent operation, the future will continue to maintain independent operations.

Stick to the hotel strategy

The Arts Dragon's total revenue for the second quarter was 312.4 million yuan (about 50.4 million U.S. dollars), a 24% increase over the same period last year, according to the report's earnings figures. Net revenue of 292.4 million yuan (about 47.1 million U.S. dollars), compared to the same period last year, 234.3 million yuan (about 38.2 million U.S. dollars) grew 25%, net profit of 31.5 million yuan, net loss for the same period last year, the amount of RMB 76.1 million yuan.

In the last quarter, the total revenue for the Arts dragon was 262.7 million yuan, an increase of 14%, the first quarter net loss of 35.4 million yuan, the same period last year net profit of RMB 2.8 million yuan, from profit to loss.

However, Cui admits that this quarter to achieve profitability is not to assert that the Arts dragon has been out of long-term losses, fully into the profit state. After this, the art Dragon will also continue to increase in the product and research and development services, marketing through the line of the next four channels to increase the launch.

Cui said that in the fierce competition, Art Dragon will continue to adhere to the hotel business strategy, contract more hotels and apartments to expand consumer choice, make the product more competitive, whether it is today's special or time-limited snapping, and constantly improve the customer friendliness of the app, making it easier to book hotels on the mobile side To help the hotel achieve online and mobile.

Cui said that in addition to hotel business, Art Dragon's apartment business growth is also very fast, investment for many years Inn and accommodation has become a gain part of the Art Dragon. Since then, the Arts Dragon will continue to focus on mobile marketing, hotel and apartment growth.

It is noteworthy that the 2013 Art Dragon Strategic Investment in the company, May 2014 announced the original price of the hotel management system to provide free of charge to small and medium-sized hotels and chain hotels. As of June 30, 2014, the choice of residential philosophy management system hotel customers a total of 5,000.

In addition, in August 2013, Yi Long investment Another company launched Cloud Shopkeeper Inn Management system, will be based on the cloud mobile side too management system for free to the inn, the main features include mobile room management, distribution and direct sales management. As of June 30, 2014, the Cloud Shopkeeper Inn management system has covered 450 destinations around the world, the number of Inn use to break through 12,000.