Ctrip has reported “solid progress” for the third quarter of 2018, saying it has “outpaced” average growth in the industry.
The China-based online travel agency reported a 15% increase in net revenue to $1.4 billion for the quarter, and chairman James Liang says it's confident in the “huge long-term opportunity” for the travel industry not only in China but the wider global industry.
A net loss of $165 million compared to the same quarter last year was attributed to losses from investments in equity securities.
Gross profit was just under $1.1 billion for the quarter, and Ctrip also reported accommodation reservation revenue up 21% to $528 million, transportation ticketing revenue up 6% to $527 million and packaged tour revenue up 28% to $201 million.
Ctrip corporate travel revenue saw a 31% spike to $39 million.
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The company feels it has much to be positive about going forward, with Liang pointing to wider factors that will help drive growth, including a 20% increase in the issue of passports in China and the potential for growth of the in-bound market.
He drew comparisons between China, which has less than 30 million overnight trips from foreign travelers (excluding Hong Kong, Macau and Taiwan), to the United States, which has 75 million in-bound visitors annually.
Liang says the company is boosting its services for non-Chinese users via Trip.com and Skyscanner.
From a Chinese domestic travel perspective, he says the expansion of the high-speed rail network, covering 80% of cities with a population of more than one million by 2020, will help increase travel.
Meanwhile, Liang believes the ongoing growth of China’s middle class will help fuel international travel.
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