Ctrip Expects Rising Costs to Nibble at Its Margins
Skift Take
Ctrip's revenue growth has remained in line with forecasts, but its costs are rising. More interestingly, the online travel giant has branched out into hotel management by providing data services and marketing support to franchisees for a new brand, Rezen.
Ctrip continues to deliver revenue growth in line with its forecasts. But executives said the online travel giant's margins may modestly contract in upcoming months as it invests for long-term growth.
Ctrip reported its third-quarter revenue growth of 15 percent, year-on-year, to $1.4 billion. Net loss was $165 million, compared to net income, or a profit, of $190 million for the same period in 2017.
Interestingly, talk of a simmering U.S.-China trade war and its possible impact on Chinese discretionary spending was barely mentioned on management's call with investors, and there w
