On November 6, Ctrip Group, a Chinese online travel service provider announced a strategic partnership with American travel website TripAdvisor, expanding their global cooperation. The partnership includes the establishment of a joint venture, global content agreements and corporate governance agreements.
Ctrip Group’s subsidiary, Ctrip Investment Holdings, and TripAdvisor Singapore Private Limited have established a new joint venture, operating under the name TripAdvisor China. Ctrip Group will be the majority shareholder of this new joint venture entity, providing cash investment as well as professional market knowledge. TripAdvisor will own a 40% of the stake in the joint venture and provide long-term exclusive brand licensing, content licensing, and other assets for its China operations.
Secondly, the two companies have also reached a global content agreement to offer TripAdvisor’s content on Ctrip’s major products, including Trip.com, Ctrip, Skyscanner, and Qunar.com.
“We are pleased to announce this strategic partnership with Ctrip. This will further expand TripAdvisor’s global influence and help Chinese outbound tourists plan a more meaningful trip,” said Stephen Kaufer, Chairman and CEO of TripAdvisor. “China is one of the world’s largest and fastest-growing tourism markets. As a current leader in the travel market, Ctrip has outstanding products and is our perfect partner for achieving long-term development goals in this region.”
“TripAdvisor is the world’s leading travel platform and an ideal partner for Ctrip Group,” said Sun Jie, CEO of Ctrip Group. “Our overseas business is gradually expanding, which also requires us not only to provide seamless booking of global travel products, but also to provide high quality reviews, opinions and pictures created by other travelers. We are excited about this strategic cooperation, and firmly believe this will further enhance the travel experience for our global users.”
Chinese outbound tourism has increased 12.7% during the first four months of 2019, and the trend is set to continue as Chinese consumer’s disposable income continues to grow, coupled with the younger generation’s increased willingness to spend on leisure activities and services.