How TUI and Rezdy Fit Into Ctrip’s Growth Strategy Outside China

Ctrip's two new partnerships, one with TUI Group’s Musement and the other with Rezdy,  announced Monday, underscore the Chinese online travel giant’s strategy to strengthen its fast growing international business. This business includes Chinese overseas travel and its global brands outside China, Skyscanner and Trip.com. It accounts for a third of the group’s net revenue of $1.1 billion in the fourth quarter of 2018. Despite China’s economic slowdown and the Sino-US trade tensions, the group’s net revenue in the fourth quarter rose 22 per cent over the same period in 2017. Ctrip ended the full year 2018 on a high, with net revenue rising 16 percent to $4.5 billion over 2017. Ctrip Chief Financial Officer Cindy Wang said on an earnings call Tuesday the international business “definitely gives us a very strong trajectory for future growth,” and Ctrip intends to invest further in it. This does, however, not mean it will give short shrift to the domestic business, where opportunity remains huge. But first, a look at the international business, which Wang said “brings us a pretty or higher-than-average operating margin” as the product is mid- to high-end. International Growth Exciting for Ctrip Both international air and hotel bookings (excluding Skyscanner) grew by three times the industry’s growth rate in the fourth quarter, Ctrip said. Skyscanner’s direct bookings delivered over 200 percent revenue growth year-on-year in the fourth quarter. The