Ctrip Says a Regulatory Mandate Didn’t Get in the Way of Growth
Photo Credit: Ctrip founders James Liang, Min Fan, Ji Qi and Neil Shen at Mercedes-Benz Arena in Shanghai for a company event. The first quarter earnings showed a strong start in 2017 for the Chinese online travel agent. Ctrip
Skift Take
China's largest online travel company says that it has changed its practices for upselling customers to comply with a consumer watchdog's request. The hiccup shouldn't knock Ctrip off its growth stride.
Last year, when China's largest online travel company Ctrip acquired Skyscanner, executives said that the UK-based travel price-comparison company didn't do as well as Ctrip at extracting revenue from each transaction.
But it turns out Ctrip has gotten in trouble with a Chinese watchdog for being a bit too good at extracting money from customers.
Earlier this year, the China Consumer Agency investigated Ctrip and insisted that the company change its policy of automatically opting in customers to purchases of add-on products such as flight accident injury insurance.
The company says it no longer requires consumers to uncheck a box to avoid the add-on costs.
Executives commented on the news during Ctrip's first quarter earnings call Thursday morning Beijing time.
That development didn't dent the company's results. Ctrip chalked up first-quarter revenue rise of about $883 million (6.1 billion renminbi), a 46 percent jump from the
