Ctrip International (NASDAQ:CTRP) stock was up 2.15% yesterday trading at USD 43.75. The stock is trading 1.8% lower than its 50 day moving average of USD 44.54. The price to earnings ratio is at 143.61 and price to balance ratio at 2.37.
Ctrip is the largest travel search engine in China offering purchase of flights, hotels and vacation packages. In 2014 Ctrip had approximately a 39 percent share of hotel bookings.
Recently, Ctrip has created strategic relationships with most of its competitors. It has bought stakes in most of its rivals without actually acquiring any of them.
In October 2015 Ctrip acquired a 45 percent stake in Qunar (NASDAQ:QUNR), which is one of Ctrip’s biggest competitors. The companies will combine their products and services after which they will together control 70 to 80 percent of China’s accommodation and flight ticket markets. This will secure the flight ticket and hotel segments from fierce price competition.
In February 2016, eLong (NASDAQ:LONG), which was the second biggest online hotel reservation website in China in 2015, right after Ctrip, announced that it will be taken private by a consortium of shareholders, which includes Ctrip. Ctrip will become eLong’s biggest shareholder with almost 40 percent.
This Ctrip information is courtesy of a premium China stock portfolios – created by WealthyTec – and offered through the Flioz mobile app for iOS.