Priceline Invests $500 Million in Chinese Booking Giant Ctrip
Skift Take
This deal has huge implications despite the fact that the Priceline Group gets only a 10% piece of Ctrip. Priceline is playing its China card with the leading travel-booking site in China, and Baidu-affiliated Qunar and Expedia's eLong get weakened in the process.
The Priceline Group has invested $500 million in Chinese booking site Ctrip, the largest in China, through a convertible bond that will, in the end, give Priceline 10% of the company's shares.
Priceline and Ctrip have had an agreement since 2012 to cross-promote products -- primarily hotels -- aimed at outbound Chinese travelers.
Under the terms of the agreement, the two companies will promote one another's hotel inventory and the economics will be more mutually advantageous.
Ctrip agrees to promote Priceline Group brands, including Rentalcars.com and OpenTable, to Ctrip customers, and the Priceline Group will promote Ctrip's flight services and tours and activities to Priceline customers.
This deal has huge implications despite the fact tha
