Priceline, the US's largest travel website, will invest 500 million of dollars in China's Ctrip travel Network

Absrtact: August 7, Bloomberg reported that the United States's largest Internet travel agency Priceline will spend 500 million of dollars to invest in China Ctrip Travel Network. Affected by this news, Ctrip shares rose 17%. Since 2012, Ctrip and Priceline have started business cooperation. Two

August 7 News, Bloomberg reported that the United States's largest Internet travel agency Priceline will spend 500 million of dollars to invest in China Ctrip Travel Network. Affected by this news, Ctrip shares rose 17%.

Since 2012, Ctrip and Priceline have started business cooperation. Two companies said in a statement that the two sides will be in their hotel inventory and other travel services to enhance the cross promotion efforts.

As China's largest travel site, with sales growth, Ctrip is expanding its room booking business. Revenue for every available room in China grew by 7% in May, the biggest increase since 2010, according to Bloomberg FDI, a research institute.

July 30, Ctrip said in a statement that the 2 quarter of this year Ctrip's total sales growth of 38% to 276 million U.S. dollars.

Priceline chief Executive Darren Houston (Darren Huston) said that the cooperation with Ctrip would stimulate both business growth and allow both sides to enter into each other's markets.

The cooperation will also allow Priceline to obtain more Chinese outbound visitor orders, increase the number of Priceline rooms available and expand Priceline's market range in China.

Houston says the number of Priceline in China is clearly inadequate.

"It's like putting a commercial house on a shelf. If you put more goods on the shelves, the store will be more valuable. Travellers from one place to another so travel is not a local business and we need to offer less than a wide selection of rooms. "said Houston.

He believes that Chinese travellers are vital to any global travel company. China's middle class is growing, and they have higher incomes, hoping to see the world. The number of Chinese tourists is increasing, and many people choose to book travel Services online. Therefore, Priceline is very eager to enter this market.

Through the acquisition strategy, Priceline Revenue has surpassed that of rival Expedia. Last year, Priceline spent 1.7 billion dollars to buy the U.S. travel search engine Company Kayak Software,priceline, thus gaining hotel search revenue.

Under the agreement, Priceline will buy Ctrip's convertible bonds and will buy Ctrip's shares in the coming year. Priceline will hold a 10% per cent stake in Ctrip. By acquiring Ctrip's convertible bonds, Priceline has the right to appoint an observer to the Ctrip board.