Ctrip sales jump 21% in Q1 to more than $1B

Chinese online travel agency Ctrip saw its net revenue increase 21% - to $1.2 billion - in the three months ending March 31 compared to the same period last year.

And income from operations increased by an even wider margin - 50% - to $132 million in the first quarter of this year.

Ctrip’s international business continues to grow at a brisk pace. More than a third of the company’s revenue in the first quarter is attributed to international business.

Skyscanner continues to be a bright spot, posting a 250% growth in direct bookings year-over-year.

"We are pleased that our first quarter results reflected our faith in the outlook of the travel industry in China as well as our own ability to execute and embrace the changes in this industry," says James Liang, Ctrip founder and executive chairman.

"We primarily empower our growth organically and create long-term value to stakeholders, focusing on expanding customer base and deepening user engagement. We also have achieved an excellent record of global strategic investments and collaborations.

"We are excited about our recent MakeMyTrip investment and look forward to achieving greater success and creating more value to our shareholders in the future."

By sector

Transportation ticketing – comprised of air and rail bookings – represented the largest share of first quarter revenue at $500 million, a 16% increase year-over-year.

Accommodation reservation revenue jumped a bit more, by 21%, in the first quarter to $450 million.

Packaged tour revenue brought in $156 million, up 25% over the first quarter of 2018, and corporate travel revenue increased 32% to $35 million.

On the expense side, sales and marketing costs increased by 6% to $331 million in the first quarter. The company says personnel-related expenses accounted for most of the increase.

Sales and marketing expenses accounted for 27% of net revenue in the first quarter, down from 31% year-over-year and from 34% in the previous quarter.

Looking ahead, Ctrip says it expects net revenue growth to continue at a rate of 16- to 21% year-over-year in the second quarter.